MODERATION EFFECT OF STRATEGIC DECISION-MAKING ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND THE PERFORMANCE OF COMMUNITY PHARMACIES IN KENYA
Abstract
Purpose of Study: This study investigated the moderating effect of strategic decision-making (SDM) on the relationship between entrepreneurial orientation (EO) and the performance of community pharmacies in Kenya.
Problem Statement: Despite high consumer demand, Kenya’s community pharmacies exhibit widespread stagnation because their strategic choices are focused on operational survival rather than growth-oriented strategies.
Methodology: The research was theoretically based on the Entrepreneurial Personality System for addressing decision-maker traits. Using a quantitative cross-sectional design, data were collected from pharmacy operators (N = 222, response rate: 59.04%) via a structured questionnaire.
Result: SDM showed no statistically significant moderating effect (Proact × SDM: β = 0.114, p = 0.598; Risk × SDM: β = -0.397, p = 0.087), but was a potential direct predictor of firm performance (SDM: β = 0.197, p = 0.065). The study concluded that SDM cannot moderate the EO-performance relationship if the strategic mindset required to do so is absent among entrepreneurs.
Recommendation: Pharmacy regulators and other policy actors could add strategic training to licensing-related continuing education and help practitioners understand how to develop scalable business models.
Keywords: Entrepreneurial orientation, community pharmacy, risk-taking, innovative, proactive, performance
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