The Influence of Balanced Organizational Controls on the Organizational Performance of Pharmaceutical Companies in Kenya

Abstract

This study aimed at establishing the influence of balanced organizational controls on the organizational performance of pharmaceutical companies in Kenya.  The dependent variable, organizational performance, was measured through profitability, customer perspective, and learning & growth.  Balanced organizational controls were measured by balancing financial controls with; strategic, sustainability, and autonomy controls. The study adopted a positivist research philosophy and a descriptive design approach. A respondent rate of 82% of the target 390 senior managers in pharmaceutical companies in Kenya was achieved.  The study’s null hypothesis was tested using an ordinal linear regression model to establish the relationship between dependent and independent variables.  The study showed a result of Nagerlkerke Pseudo R² = .068, meaning that balanced organizational controls explained 6.8% of the variance in organizational performance. At the same time, parameter estimates indicated that balanced controls significantly predicted organizational performance, β=.134, p ≤ .05, therefore rejecting the null hypothesis that balanced controls do not significantly influence organizational performance. This research established that successful organisations balance organizational controls; consequently, the study recommended that pharmaceutical companies implement mechanisms to ensure balanced controls. Future studies could investigate the influence of balanced organizational controls on employee performance.