EFFECT OF INTERNAL ENVIRONMENTAL FACTORS ON GROWTH OF PHARMACEUTICAL COMPANIES IN SOUTH EAST NIGERIA

Abstract

The study examined the effect of internal environmental factors on growth of pharmaceutical companies in South East Nigeria. Specifically, the study examined the effect of financial capability on profit growth of pharmaceutical companies in South East Nigeria; the effect of marketing capability on sales growth of pharmaceutical companies in South East Nigeria; the effect of managerial capability on employment growth of pharmaceutical companies in South East Nigeria. The study employed survey research design. The population of the study was all 270 management and senior staff of 10 pharmaceutical companies in Enugu and Anambra States. Since the population was not large, the whole population completed a structured questionnaire. Data were analyzed with Pearson Product Moment Correlation Coefficient (rs) with the aid of statistical package for social sciences (SPSS 20.0). The result showed that financial capability has a positive significant correlation with profit growth of pharmaceutical companies in South East Nigeria (correlation coefficient of .770); marketing capability has a positive significant correlation with sales growth of pharmaceutical companies in South East Nigeria (correlation coefficient of .828), managerial capability has a positive significant relationship with employment growth of pharmaceutical companies in South East Nigeria (correlation coefficient of .768). The study concluded that internal environmental factors have effect on growth of pharmaceutical companies in South East Nigeria. It was recommended that pharmaceutical companies in South East Nigeria should source for finance in order to implement strong financial strategies.