Asian Journal of Economics, Business and Accounting

Material capability's influence in deciding organizational performance has been stressed in a growing empirical literature. Material inadequacy exposes pharmacies to poor deliveries, frequent stock-outs, and service disintermediation. In Garissa Town, operational shortcomings like deteriorating road networks, erratic transportation services, and inconsistent vendor networks exacerbate these scenarios, making it difficult for pharmacies to maintain adequate stock levels or meet client demand in a predictable manner. This study investigated the effect of material capability on the performance of pharmacies in Garissa Town in Kenya, with a specific focus on inventory accuracy, procurement efficiency, and cost control. A descriptive cross-sectional research design was employed, covering 35 licensed pharmacies between 10^th January to 15^th August 2025. The study engaged 105 respondents, comprising pharmacy managers, procurement officers, and pharmacists, using semi-structured questionnaires and interview schedules. A pilot study conducted in Hola, Tana River County, in Kenya, confirmed the clarity, reliability, and validity of the instruments. Data were analyzed using SPSS Version 26, where descriptive statistics, Pearson correlation, and multiple regression techniques were applied. Results indicated a mean material capability score of 3.8851 (SD = 0.60714), while pharmacy performance registered a mean of 3.8873 (SD = 0.49227). Correlation analysis revealed a strong, positive, and statistically significant association between material capability and pharmacy performance (r = 0.684, p = 0.001). Regression results further confirmed material capability as the most influential predictor (β = 0.471, p = 0.001), accounting for a substantial portion of the variance in performance. Pharmacies with dependable procurement systems, reliable suppliers, and effective stock-out prevention mechanisms consistently reported higher profitability, customer satisfaction, and retention. Qualitative findings highlighted that, despite infrastructural and supply constraints, pharmacies adopted adaptive strategies such as localized vendor networks and manual stock-tracking systems to sustain operations. The study concludes that material capability is central to enhancing pharmacy performance in resource-constrained environments and recommends strategic investment in inventory management systems, supplier reliability, and procurement planning to strengthen service delivery, operational efficiency, and long-term competitiveness.