External Task Environmental Factors and Competitive Advantage in Retail Pharmacies in Nairobi County, Kenya

Authors

  • Faith Mumbi Kinuthia United States International University
  • Prof. Maina Muchara United States International University
  • Prof. Allan Kihara Ph.D United States International University

DOI:

https://doi.org/10.47941/jbsm.3018

Keywords:

External Task, Environmental Factors, Competitive Advantage, Retail Pharmacies

Abstract

Purpose: The purpose of this research was to determine the influence of external task environmental factors on competitive advantage in retail pharmacies in Nairobi.

Methodology: The study was grounded on the Technology, Organization, and Environment (TOE) framework and adopted post-positivism as the research philosophy. A quantitative approach was used, and primary data were collected through a structured, digitally administered questionnaire. The study targeted 365 registered retail pharmacies that had more than one branch. Stratified random sampling was used to select a sample of 170 pharmacies, and a total of 162 valid responses were received, resulting in a 95% response rate. Data analysis was conducted using Spearman’s rank correlation, chi-square tests, and ordinal logistic regression. Findings: The study established no significant relationship between environmental factors and competitive advantage across all statistical tests. The study concluded that while environmental task factors did not show consistent or significant influence on competitive advantage, individual-level factors, such as innovativeness and IT knowledge played a decisive role.

Unique Contribution to Theory, Practice and Policy: The study recommends future research on other actors in the pharmaceutical value chain, including distributors and manufacturers, to expand understanding of e-commerce impact. It also recommends further investigation into cultural dimensions using alternative approaches. The findings are expected to support evidence-based decision making for pharmacy owners, digital transformation policymakers, and stakeholders advancing Kenya’s Vision 2030, the Bottom-Up Economic Transformation Agenda (BETA), and the Sustainable Development Goals (SDGs).

Downloads

Download data is not yet available.

Author Biographies

Faith Mumbi Kinuthia, United States International University

Chandaria School of Business

Prof. Maina Muchara, United States International University

Chandaria Business School

Prof. Allan Kihara Ph.D, United States International University

Chandaria Business School

References

Ali, A. , & Bhasin, J. (2019) . Understanding Customer Repurchase Intention in E-commerce: Role of Perceived Price, Delivery Quality, and Perceived Value. Jindal Journal of Business Research, 8(2), 227868211985027.

Al-Tit, A. A. (2020). E-Commerce drivers and barriers and their Impact on E-Customer Loyalty in Small and Medium-Sized Enterprises (SMES). Business: Theory and Practice, 21(1), 146–157.

Ausat, A. M. A. , & Peirisal, T. (2021) . Determinants of E-commerce Adoption on Business Performance: A Study of MSMEs in Malang City, Indonesia. Jurnal Optimasi Sistem Industri, 20(2), 104. https://doi. org/10. 25077/josi. v20. n2. p104-114. 2021.

Cameron, K., & Quinn, R. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Personnel Psychology, 59(3), 755–757.

Davis, F. D. (1989). Technology Acceptance Model. Springer.

Denison, D. R., & Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204–223. https://www. jstor. org/stable/2635122.

Denison, D., Nieminen, L., & Kotrba, L. (2014). Diagnosing organizational cultures: A conceptual and empirical review of culture effectiveness surveys. European Journal of Work and Organizational Psychology, 23(1), 145–161. https://doi.org/10.1080/1359432x.2012.713173

Efraim Turban, King, D., Lee, J., Ting-Peng Liang, Turban, D. C., & Lang, J. (2013). Electronic commerce 2012: a managerial and social networks perspective. Pearson.

Feng, C., Lian, D., Wang, X., Liu, Z., Xie, X., & Chen, E. (2023). Reinforcement Routing on Proximity Graph for Efficient Recommendation. ACM Transactions on Information Systems, 41(1), 1–27.

Gichuki, C. N., & Kihara, Dr. A. (2018). Influence of E -Business Strategies On Peformance of Online Retailers in Kenya. International Journal of Strategic Management, 7(4), 1–19.

Hamad, H., Elbeltagi, I., & El-Gohary, H. (2018). An empirical investigation of business-to-business e-commerce adoption and its impact on SMEs competitive advantage: The case of Egyptian manufacturing SMEs. Strategic Change, 27(3), 209–229.

Handari Wahyuningsih, S., Sudiro, A., Afnan Troena, E., & W Irawanto, D. (2019). An analysis of organizational culture with denison’s model approach for international business competitiveness. Problems and Perspectives in Management, 17(1), 142–151. https://doi. org/10. 21511/ppm. 17(1). 2019. 13.

Iftikhar, W., Vistro, D. M., & Mahmood, Z. (2021, September 13). Blockchain Technology Adoption by Malaysian Higher Education Institutes: A Perspective of Integrated Tam Model and Toe Framework. Www. atlantis-Press. com; Atlantis Press. https://doi. org/10. 2991/ahis. k. 210913. 077.

Irungu, A. W. & Arasa, P. R. (2017). Factors Influencing Competitiveness Of Smes In Nairobi County, Kenya. International Journal of Entrepreneurship and Project Management, 2(1), 22–46.

Kazemi, A., Kazemi, Z., Heshmat, H., Nazarian-Jashnabadi, J., & Tomášková, H. (2024). Ranking Factors Affecting Sustainable Competitive Advantage from The Business Intelligence Perspective: Using Content Analysis And F-TOPSIS. Journal of Soft Computing and Decision Analytics, 2(1), 39–53. https://doi. org/10. 31181/jscda21202430.

Kim, J., He, N., & Miles, I. (2023). Live Commerce Platforms: A New Paradigm for E-Commerce Platform Economy. Journal of Theoretical and Applied Electronic Commerce Research, 18(2), 959–975. https://doi. org/10. 3390/jtaer18020049.

Kiveu, M. N., Namusonge, M., & Muathe, S. (2019). Effect of innovation on firm competitiveness: the case of manufacturing SMEs in Nairobi County, Kenya. International Journal of Business Innovation and Research, 18(3), 307.

Mahakittikun, T., Suntrayuth, S., & Bhatiasevi, V. (2020). The impact of technological-organizational-environmental (TOE) factors on firm performance: merchant’s perspective of mobile payment from Thailand’s retail and service firms. Journal of Asia Business Studies, ahead-of-print(ahead-of-print).

Mugo, P. C. , & Macharia, J. (2020) . Technological innovation and competitive advantage in telecommunication companies in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 9(5), 38–47.

Nguyen, T. H., Le, X. C., & Vu, T. H. L. (2022). An Extended Technology-Organization-Environment (TOE) Framework for Online Retailing Utilization in Digital Transformation: Empirical Evidence from Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 200. https://doi. org/10. 3390/joitmc8040200.

Ocloo, C. E., Xuhua, H., Akaba, S., Shi, J., & Worwui-Brown, D. K. (2020). The Determinant Factors of Business to Business (B2B) E-Commerce Adoption in Small- and Medium-Sized Manufacturing Enterprises. Journal of Global Information Technology Management, 23(3), 191–216.

Odhiambo, O. E. , & Mang’ana, R. (2022) . Strategic Adoption of Technological Innovations on Competitive Advantage of Commercial Banks in Kenya. Journal of Business and Strategic Management, 7(2), 16–36.

Pasquali, M. (2023,). Retail e-commerce sales CAGR 2021-2025. Statista. https://www. statista. com/forecasts/220177/b2c-e-commerce-sales-cagr-forecast-for-selected-countries.

Pharmacy and Poisons Board. (2025). PPB - Online Services Portal. Pharmacyboardkenya. org.

Setiyani, L., & Yeny Rostiani. (2021). Analysis of E-Commerce Adoption by SMEs Using the Technology - Organization - Environment (TOE) Model: A Case Study in Karawang, Indonesia. International Journal of Science, Technology & Management, 2(4), 1113–1132.

Shehata, G. M., & Montash, M. A. (2019). Driving the internet and e-business technologies to generate a competitive advantage in emerging markets. Information Technology & People, 33(2), 389–423.

Sin, K. Y., Osman, A., Salahuddin, S. N., Abdullah, S., Lim, Y. J., & Sim, C. L. (2016). Relative Advantage and Competitive Pressure towards Implementation of E-commerce: Overview of Small and Medium Enterprises (SMEs). Procedia Economics and Finance, 35, 434–443.

Statista. “ECommerce Report 2023 | Statista.” Statista, Statista, 2023.

Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). The Processes of Technological Innovation. Free Press.

Wali, Z. , Muraguri, C. , & Wachana, P. (2023) . Influence of Technological Readiness on the Performance of E-Businesses in Kenya. The University Journal, 185–198.

Xuhua, H. , Chosniel Elikem, O. , & Akaba, S. (2019) . Effects of business-to-business e-commerce adoption on competitive advantage of small and medium-sized manufacturing enterprises. Economics & Sociology, 12(1), 80–99.

Zhang, L., & Chung, D. J. (2020). Price Bargaining and Competition in Online Platforms: An Empirical Analysis of the Daily Deal Market. Marketing Science, 39(4), 687–706.

Downloads

Published

2025-07-24

How to Cite

Kinuthia, F. M., Muchara, M., & Kihara, A. (2025). External Task Environmental Factors and Competitive Advantage in Retail Pharmacies in Nairobi County, Kenya. Journal of Business and Strategic Management, 10(10), 54–75. https://doi.org/10.47941/jbsm.3018

Issue

Section

Articles