John Nhari, Teresa Carmichael
Abstract
This research is a qualitative exploration of dynamic capabilities’ influence on competitive advantage in the pharmaceutical manufacturing sector in an emerging market with hyperinflation. The rising global demand for effective healthcare systems, particularly in developing countries, makes it necessary to enquire about the competitiveness of pharmaceutical manufacturers who deliver essential medicines to the nation. An interpretive research paradigm was adopted to explore utilising dynamic capabilities for competitive advantage in pharmaceutical firms. Data were collected via semi-structured interviews with a purposively selected sample of twelve industry experts and then thematically analysed.
The research revealed that the alignment of dynamic capabilities to competitive advantage is not a straitjacket but is regulated by the financial, regulatory, and market environments and hyperinflation. In these environments reside the individual deterrence of dynamic capabilities, leading to ineffective seizing of opportunities despite firms being able to sense and regenerate their capabilities. Industry recommendations are to prioritise resource allocations towards seizing opportunities while mindful of dynamic capability retardants hindering their efforts, for future researchers to focus on the weighted contribution of each capability to determine those giving greater competitive advantage returns, and to the government to introduce quotas and rebates for public medicine manufacturing.