Environmental Scanning and Performance of Pharmaceutical Firms in Nigeria: Evidence from May and Baker Plc

Abstract

Pharmaceutical firms in Nigeria face a difficult operating environment. In view of this, the need for them to carry out continuous environmental scanning is imperative to remain in operation. Open system theory anchored this quantitative-empirical study, which investigated the effect of environmental scanning on the profitability of pharmaceutical firms in Nigeria using May and Baker Plc as a case study. Secondary data were collected from the annual reports of May and Baker Plc., and the Central Bank of Nigeria within the period of 2010 to 2022. The study established that exchange rate, taxation, exports, inflation, imports, and investment have significant positive effects on the profitability of May and Baker Plc. Economic growth has a significant negative effect on the profitability of May and Baker Plc. Industrial production has a non-significant negative effect on the profitability of May and Baker Plc. Investment and exchange rate volatility have the strongest significant positive effects on the profitability of May and Baker Plc. within the period covered in this study. Continuous environmental scanning by pharmaceutical firms in Nigeria with focus on exchange rate, taxation, exports, inflation, imports, and investment cannot be ignored as they have significantly influenced their performance.