Competencies of strategic leadership towards business sustainability in emerging pharmaceutical business of South Africa: A case of Alpha distribution

Abstract

In today’s complex, ever-changing, and unpredictable global economy, strategic leadership is more critical than ever. To accomplish the wholesale pharmaceutical industry goals, all strategic leaders in the same field must demonstrate proficiency in specific areas of strategic leadership. Therefore, successful wholesalers of pharmaceuticals work so hard at strategic planning, business process simplification, culture management, and human resource development. A pharmaceutical company based in Durban was the focus of this exploratory research into how strategic leadership can keep a company competitive in an ever-changing industry. This paper examines the strategic leadership skills and responsibilities of a pharmaceutical company in Durban, South Africa, and how they contributed to the company’s long-term competitive advantage. Ten prominent pharmaceutical strategic leaders were consciously chosen for this research. The strategic leaders were interviewed in-depth using a semi-structured interview guide. The thematic analysis defined themes illustrating how strategic leadership’s skills and responsibilities help maintain a company’s competitive edge. Findings indicate that Alpha Pharma’s ability to sustain competitive advantage in Durban was impacted by four facets of strategic leadership: strategic thinking, emotional intelligence, diversity management, and the promotion of collective leadership. The study also found that strategic leadership was involved in distinct activities: establishing a course of action; dealing with the complexities of doing business, advocating for a new organisational structure; shaping the company’s culture, and developing its human resources. Strategic leadership is a competitive advantage for pharmaceutical companies as they develop their internal capabilities and adapt to an ever-changing industry and marketplace.

Keywords:

• strategic leadership
• sustainability
• competitive advantage
• competencies
• pharmaceutical distribution
• sustainable leadership

1. Introduction

According to the decline and rebirth of sustainable and strategic leadership, Hunitie (2018) argued that the pharmaceutical business confronts an unpredictable, risky, competitive, and fast-changing future. With globalisation, markets are increasingly diversified and complicated. In a competitive world, a company requires competent leadership to survive (Fadhli, 2020). Therefore, organisations need leaders capable of providing direction towards business sustainability. The pharmaceutical industry of South Africa is not spared by the challenges presented by the competitive environment, hence the need for organisations to apply strategic leadership in order to be sustainable. Without strategic leadership, many pharmaceutical wholesalers and retailers in South Africa would not survive. Encounters facing the pharmaceutical business include frictions between improving access to reasonably priced medications, on the one hand, and increasing the production of pharmaceuticals, on the other (Nahak & Ellitan, 2022). In keeping with this assertion and the need for strategic leadership for organizations to gain competitive advantage (Yoon & Suh, 2021). This article aims to explore strategic leadership, strategic thinking, leadership sustainability, and competitive advantage (Nisha et al., 2022; Piwowar-Sulej & Iqbal, 2022). Strategic leaders have distinct duties under their core goal of competitive advantage.

In doing so, strategic leaders clarify the entire organisation and the environment within which an organization operates and creates strategic change through other people to achieve both short-term and long-term viability. Gupta (2018) and Yasin and Tahir (2013) concur that strategic leaders are also vital as they can influence others to voluntarily make strategic choices for the long-term stability of an organization. Strategic leadership skills are needed to change a company’s vision and capital into a successful reality (Kanyangale, 2017). According to Duggan et al. (2016), strategic leadership drives the procedure of creating a vision for the future, collaborating it with assistants, stimulating and motivating followers, and winning in strategy-supportive relations with the upper class and assistants. Research on strategic leadership revealed various aspects that affect this process, such as sustainable leadership, frugal innovation, and environmental performance, which is the capacity to scan the external environment and cope with environmental changes (Iqbal et al., 2022).

When it comes to the literature’s coverage of links between concepts, the connection between strategic leadership, sustainable leadership and competitive advantage stands out as one of the most well documented. According to Akpoviroro et al. (2019), strategic leadership is crucial to companies’ growth, survival and sustainability. A vast number of research done in the past 30 years has explored the relationship between various leadership styles and business performance (Carter & Greer, 2013). In this regard, leadership is key to the survival and growth of modern companies, including pharmaceuticals. Strategic leadership entails the capability to predict and visualise an opportunity, sustain strategic direction, deliberate tactics and introduce shifts that are key to gaining a competitive advantage for the company (Daft, 2014). In turbulent environments, strategic leaders are cardinal as the rivalry confronting the 21^st-century business is complicated and loaded with competitive prospects and threats. Executives and managers engage in main strategic gaps that shift the rivalry landscape. Business conduct or behaviours operative in history are realised to be ineffective, and new methods must be established. The challenge of companies is to attain and sustain strategic competitiveness or advantage over competitors in volatile, uncertain, complex and ambiguous (VUCA) contexts of business interactions (Louw, 2019).

In this vein, Kanyangale (2017) states that it takes good strategic leadership skills to change the company’s vision and capital into a successful reality. Strategic leaders play a very significant role by identifying the environment they are working in and strategies that are appropriate and specific to the circumstances at hand (Snowden & Boone, 2007). Firms do not survive independently but form part of a comprehensive atmosphere categorised by competition and swift and ambiguous transformation (Louw & Venter, 2013). Globalisation is creating opportunities for international markets and partnerships but also challenges for businesses in the domestic markets. In this regard, Alpha Pharm’s strategic leaders must deal with global and local competition.

Despite the importance of strategic leadership, sustainable leadership and strategic leadership are not the same. According to Hough (2011), the general understanding of leadership focuses on an individual’s behaviour directing a group’s activities toward a shared goal. In this broad understanding, leadership is the ability of an individual or group to influence, motivate and enable others to start change and change processes that are more adaptive and contribute to the effectiveness of an organisation. Notably, this generic understanding of leadership differs from the notion of strategic leadership. Simply put, strategic leadership refers to leadership not within but the leadership of the entire organisation, which focuses on creating and clarifying a strategic vision for the business and inspires and encourages others to obtain that vision (Dimitrios et al., 2013). Strategic leadership gives the idea and direction to other leaders within the organisation to create success.

In line with these perspectives of strategic leadership, strategic leaders are vital in helping their organisations to adjust to the macro-environment to do well and be viable. These organisation leaders play a decisive role in safeguarding their organisations to adapt to unstable environments and excel. Iqbal and Piwowar-Sulej (2022) investigate how procedural justice atmosphere and emotional commitment to the supervisor might stimulate OCBES in workers working under a sustainable leader at the team level. Fail-to-adapt industries disappeared (Narayanan & Zane, 2009; Olwan et al., 2019). The capability to forestall, imagine, keep flexibility, and permit others to produce strategic revolution is essential to succeed as a strategic leader (Hitt et al., 2017). Strategic leadership incorporates ethical ideas with firm dashes of realism (Kumkale, 2022). In simple terms, strategic leadership encompasses the entire business. Similarly, Iqbal et al. (2020) research looks at how feelings of agency influence the associations between sustainable leadership and long-term success. It provides strategic direction by making strategic choices and inspiring everyone to pursue the alternatives for an organisation to ensure competitive victory in a fast-changing business world. According to Louw and Venter (2013), strategic decisions are about an organisation’s long-term direction. They are also characterised by influencing the scope of an organisation’s activities and how to gain a competitive advantage over competitors.

This article interrogates strategic leadership and its influence on leadership-sustainability in a business. According to Slawinski and Bansal (2015), sustainability is the capability of companies to answer to their short-term financial needs without bargaining their capacity to meet future needs. In this vein, strategic leaders need to balance the short-term performance with the long-term needs of their organization, including operating within the limits of the environment. Leadership-sustainability is fast becoming stylish in strategic management, yet its meaning is often elusive (Bansal & DesJardine, 2014; Iqbal et al., 2021). Notably, sustainability concepts, particularly in the health sector, involve healthcare professionals, emphasising the close interrelationship between governments, public and private hospitals, research institutes, other health professionals (e.g. doctors, pharmacists, etc.), pharmaceutical companies and citizens (Salvioni et al., 2015). In the study, by Xuecheng et al. (2022) examine the oblique effect that information sharing has on responsible leadership’s contribution to long-term success.

Researchers have not been able to find any studies that examine the intermediate role of sustainable leadership and strategic thinking in relation to strategic leadership, despite the fact that strategic leadership, competitive advantage, sustainable leadership, and strategic thinking are all crucial to the success of any organization. Have study purpose in the above literature, the competencies of strategic leaders have become more key in ensuring the leadership-sustainability of their business in a networked or interdependent environment. Beyond study close purpose, it is critical to explore the competencies of strategic leaders that affect the leadership-sustainability of companies in the health sector, mindful of the variety of interconnections among different types of businesses. This article focused on the competencies of the strategic leaders at a distribution centre of a pharmaceutical wholesaler in Durban, South Africa.

This research has implications for the configuration of pharmaceutical company leadership, governance, and autonomy in South Africa and other African nations with comparable skilled pharmaceutical leadership structures, such as those in the Southern African Development Community.

This qualitative research adds to the literature by interviewing 10 industry experts in pharmaceutical strategy. The purpose of this study is to inquire into the thoughts and beliefs of these professionals on the topic of the competencies of strategic leadership in guaranteeing leadership-sustainability at Alpha Pharm Distribution Centre in Durban.

1.1. Research questions

1. What are the competencies of strategic leadership in ensuring sustainability at Alpha Pharm Distribution Centre in Durban?

2. What are the tasks that strategic leadership at Alpha Pharm Distribution Centre in Durban perform in sustaining competitive advantage?

3. How should the tasks of strategic leadership be undertaken to ensure sustained competitive advantage at Alpha Pharm Distribution Centre in Durban?

1.2. Problem statement

In today’s complicated, uncertain global economy, strategic leadership is crucial, but we do not know how strategic managers’ skills and tasks create a lasting competitive edge for an organisation (Agyepong et al., 2018; Mistarihi, 2021). Many leadership academics have neglected the link between strategic leadership and outcomes (Kanyangale, 2017). Organisations’ biggest problems today are managerial leadership and a lack of strategic leadership (Alvarenga et al., 2019; Pitelis & Wagner, 2019). Strategic challenges are abstract and often at a higher level than day-to-day operations, therefore little attention has been paid to how strategic leadership abilities affect daily performance (George et al., 2022; Gupta et al., 2020). This study examines Alpha Pharm’s strategic leadership and leadership-sustainability. It is crucial to understand how strategic leaders in large pharmaceutical companies are contributing or hindering sustainable competitive advantage owing to internal and external environmental changes. Alpha Pharm competes with Durban pharmacies including CJ pharmaceutical wholesaler, Pharmed, Khariwastan pharmaceutical wholesaler, City medical, and Trans pharm. Strategic leaders in the pharmaceutical sector emphasize ethically gaining competitive advantage to achieve sustainable competition (Takawira et al., 2022). Life and health ethics are important. To conclude, the pharmaceutical industry is extensively regulated by law and ethics in pricing and operations, making company more difficult and requiring strong and efficient strategic leadership (George et al., 2022). Alpha Pharm has not studied how strategic leaders provide competitive advantage that is sustainable and ethical. This exploratory study is important since most pharmaceutical leadership studies have not examined strategic leadership as a source of competitive advantage (Milanesi et al., 2020). The pharmaceutical setting in Europe and India has been prioritised above Durban in South Africa (Singh et al., 2021).

2. Literature review

2.1. Competencies of strategic leadership

The notion of fundamental competencies in organisations is very influential and was established by (Hamel & Prahalad, 2013). Competence refers to a holistic and interlinked set of understanding techniques, practical skills, values, and behaviours that might enhance overall performance and hassle fixing while managing actual international and demanding situations (Wiek et al., 2015). Competence is someone’s integrated overall performance-oriented potential to reach particular achievements (Ploum et al., 2018). Glasser and Hirsh (2016, p. 126) define competence as a “constellation of abilities, attitudes, knowledge, understanding, skills, and habits of mind that are functionally linked to support both problems- posing and problem-solving and evoke purposeful behaviour toward particular end goals”. In pursuit of the study objectives, this study adopted the widely utilised definition of competence proposed by Wiek et al. (2015). Therefore, this is relevant to this paper which seeks to answer the question of what strategic leadership competencies are vital in ensuring sustainability at Alpha Pharm.

While scholars agree that strategic leaders need to have competencies, scholars do not agree on the composition of these competencies (Hesselbarth & Schaltegger, 2014). Furthermore, scholars also factor in a loss of commonly agreed upon tools or strategies to measure and assess the extent to which competency acquisition sincerely takes place in strategic leaders and the outcomes of using particular competencies (Glasser & Hirsh, 2016). According to Amos (2013), the competencies of a strategic leader include (1) the ability to think strategically, (2) being emotionally intelligent, an ability to balance transformational leadership, and the capability to demonstrate African leadership. Ploum et al. (2018) view competence as a fixation of attributes possessed by workers, generally represented as know-how, abilities, attitudes, and private trends required for powerful painting performance. Competencies can be considered a catalyst for growing a more critical, progressive, and reflexive way of life that regularly questions personal exercises, assumptions, and guiding principles (Lans et al., 2014).

This paper focuses on the competencies highlighted by Amos (2013, p. 417), which are also depicted in Figure Figure 1. These competencies are adopted in a study of strategic leaders in a pharmaceutical wholesaler mainly because competencies include knowledge or concepts that is understanding and methods or skills.

Figure 1. Competencies and tasks of strategic leadership.

Source: Amos (2013, p. 417).

2.2. Strategic thinking

Asking the right questions is vital, an aspect of strategic wondering. Nonetheless, what precisely is strategic thinking? (Tovstiga, 2015). According to Tovstiga (2015), strategic thinking implies first and predominantly a manner of questioning, a thoughts-set that underpins a planned, cause-driven technique to approach. Its drive is to subsequently offer courses and ways to selection-making in conditions associated with clear strategic thinking. Mintzberg (1995, p. 139) well-defined strategic thinking as “seeing ahead, seeing behind, seeing above, seeing below, seeing besides, seeing beyond and significantly seeing it through”. In this regard, strategic thinking requires different ways of seeing the same thing. Thus, strategic thinking can be used in any organisation in quest of gaining a viable advantage (Haycock, 2012).

According to Amos (2013), strategic thinking is about probing for ways to define the strategic problem’s landscape and resolve it suitably. It is acknowledged as an individual action influenced by the framework within which it occurs (Goleman & Boyatzis, 2017; Mintzberg, 1995). Strategic thinking regulates how people choose and achieve their capital (De Romemont et al., 2014). Therefore, this is different from Haycock (2012), who suggests that strategic thinking is not just individual action but rather a tool that would push an organisation and transform it to achieve substantial development in output. In this line, Bass and Milosevec (2014) concur that strategic leaders at the greater of the business make projections by thinking strategically, use creativity, and validate their projections in the environment.

Bajcar et al. (2015) reveal that processes of mental operationalisation of activities are mainly significant during organisational execution processes. However, these are not the solitary conceivable mental activities. Four dimensions of strategic thinking include identifying, diagnosing, conceiving, and realising. First, identifying is the psychological action essential to respond to the question of “what the problem is”. Thus, there is to diagnose the problematic situation by deciding on the core of the delinquent. Second, conceiving is when the strategic leaders solve the problem by appealing to the actions and imagining how to address the issue. Lastly, realisation is about assessing the consequences of the activities (De Wit & Meyer, 2010). These four mental activities are depicted in Figure Figure 2.

Figure 2. Mental or cognitive activities of the strategic reasoning process.

Source: De Wit and Meyer (2010, p. 53)

Furthermore, it is noteworthy that Silva and Mousavidin (2015) highlight that strategic thinking is associated with strategic information systems and planning. They suggest that strategic thinking occurs in unstructured and ambiguous contexts but also encompasses the investigation and combination of information, unlike bases.

Regarding strategic leadership, strategic thinking as a competence reveals that interpersonal and motivational aspects are not enough as cognitive skills are also necessary. In this study, observing strategic thinking means assessing the competitive landscape, forming issues, developing strategic questions, generating strategic options, and developing insight using strategic analysis (Tovstiga, 2015). Therefore, this is relevant to this study which focuses on a pharmaceutical wholesaler because strategic thinking is concerned with consideration in a novel way to compete in an uncertain and competitive situation.

2.3. Emotional intelligence

Emotional intelligence is the potential to acquire non-public desires, persuade others and become one’s significant self, all of which resonate with proof-primarily based assets of meaningful work (Thory, 2016). Goleman (2014) describes emotional intelligence as the abilities or skills with a purpose to recognise one’s own emotions, manipulate one’s emotions, self-inspire, in addition, to recognize others’ feelings and take care of relationships. Emotional intelligence is the ability to understand and explicit oneself, to apprehend others and relate to them, to manipulate one’s very own emotions and people of others, and to apply emotions as a supply of records (Nafukho et al., 2016).

Emotional intelligence underpins the ability of the strategic leader to communicate successfully (Amos, 2016). However, emotional intelligence does not enjoy a unanimously agreed-on definition and theory (Nafukho et al., 2016). In their early literary work, Goleman and Boyatzis (2017, p. 3) recommended that the four domains of emotional intelligence of leaders encompassed “self-awareness, self-management, social awareness, and relationship management”. Thus, being aware of one’s emotions and impact on others and work and awareness of self-worth are critical parts of emotional intelligence for strategic leaders. Additionally, Goleman (2014) posits that self-management, social awareness and social skills are essential elements for one to understand the concept of emotional intelligence. These four elements of the idea of emotional intelligence are reflected in Table 1.

Table 1. Emotional intelligence domains and competencies

Source: Goleman and Boyatzis (2017, p. 3).

In this study, emotional intelligence is taken as the ability to effectively manage ourselves and our relationships (Amos, 2016). Therefore, this is appropriate for this study of strategic leaders in a pharmaceutical company because emotional intelligence helps strategic leaders implement the suitable collection of leadership behaviours or styles in the right size and at the right time to get results.

2.4. Behavioural complexity

Another competence for a strategic leader is behavioural complexity. The term complexity implies the ability to respond to a host of ambiguous and contradictory forces, including the simultaneous presence of opposite (Denison et al., 1995). Therefore, behavioural complexity refers to the capacity to change between different roles and behaviours effortlessness in response to contextual dynamics (Vilkinas & Cartan, 2001). Hooijberg (1996) defines behavioural complexity as the ability to adapt to situations. Carmeli and Halevi (2009) refer to behavioural complexity at the institution stage and examine the top control group’s capacity to carry out a portfolio of management roles (behavioural repertoire) and its capacity to carry out the right leadership roles differ depending on the organizational scenario (behavioural differentiation). Behavioural complexity refers to a frontrunner’s capacity to take on a couple of functions and carry out these leadership roles differently. Thus, influential leaders have the cognitive and behavioural complexity to respond as they should to a vast range of situations that could, in reality, require contrary or opposing behaviours.

In this paper, behavioural complexity means the ability to behave in a complex manner. Therefore, this is relevant to this study which focuses on a pharmaceutical wholesaler because strategic leaders need a range of behaviours at their disposal, being able to practice them in the proper aggregate at the appropriate time in the right context.

2.5. Transformational leadership

According to Masa’deh et al. (2016), transformational leadership is a technique of developing those who accomplish dreams and objectives that, in turn, cause the agency’s improvement. Transformational management is the manner wherein a person engages with others and creates a connection that raises the extent of motivation and morality in both the chief and the follower (Northouse, 2018). It is vital to highlight that transformational leadership is a proactive cultural change agent seeking achievement by values driven by group interests.

Conferring to Obeidat et al. (2015), transformational leadership encompasses a combination of leadership actions that are also called the four I’s, namely, (1) idealised influence, (2) inspirational motivation, (3) intellectual stimulation, and (4) individualised consideration. In a nutshell, idealised influence is about leaders who act as charismatic function fashions, display a feeling of electricity and confidence, make unconventional excessive affect decisions, and work in keeping with deeply held values (Masa’deh et al., 2016). Inspirational motivation refers to the leader’s enthusiasm and optimism in creating a vision for the future and stimulating similar feelings amongst fans (Caillier & Sa, 2017).

Given the above, the term transformational leadership, as used in this paper, means the ability to identify and articulate a vision, foster the acceptance of group goals, provide an appropriate model, provide individualised support, peaking high overall performance expectations, and high ranges of air of secrecy (Masa’deh et al., 2016). Therefore, this is relevant to this paper which focuses on a pharmaceutical wholesaler because transformational leadership leads to positive relationships between the top management team and lower-middle managers but also affects the commitment and performance motivation of others.

2.6. African leadership

Amos (2013) asserts that strategic leaders need the competence of African leadership, which is characterised by the value of humanitarianism. In short, African leadership is related to the African span of “ubuntu”. “ubuntu” implies “humanity to others” or “I am what I am because of who we all are” (Gade, 2012, p. 493).

Management in the context of Africa emphasises more on chiefs and the importance of community-based obligation. Khoza (1994) recommends leadership in the African context express scientism about the West’s approach to leadership. It is noteworthy that the western forms of management “continue to form the foundation of management in African corporations” (Khoza, 1994, p. 121).

Numerous academics understand (Khoza, 2006; Mangaliso, 2001; Mbigi, 2007) that Ubuntu is helpful in the African context where collectivism is strong. However, Ubuntu has the demerits of free riders who may not contribute to the collective success. It is argued that Ubuntu takes cognizance of social diversity, humanitarianism, and social responsibility as key in leading a business as a strategic leader.

Concerning African leadership, what is essential is leadership that is centred on Afrocentric pasts and African beliefs of collectivism and humanitarianism (Gumede, 2017). Gumede (2017) argues that one cannot define African leadership without discussing African-centred styles. African-centred styles are mainly Afrocentric. Changes in African governance systems over the past 500 years have led to the abandonment or downgrading of African leadership patterns. Gumede (2017) recognize that, for instance, earlier than colonisation and imperialism, there had been management methods, and most of them concerned girls at the centre of these African management patterns. In this paper, African leadership is a set of concepts, practices, assumptions, and values that constitute a way of viewing reality for people who share them—a pattern or model for a living (Khoza, 2007). This study has ramifications for pharmaceutical firm leadership, governance, and autonomy in South Africa and other African states with similar competent pharmaceutical leadership structures, such as the Southern African Development community.

3. Research design

Using a qualitative approach (Saunders et al., 2019), we sought to gain insight into the views of experts on the competencies of pharmaceutical strategic leaders (Flick, 2018). The study, built upon a social constructivist paradigm, explored the multiple and subjective perspectives of strategic leaders of Alpha Pharm in Durban, with particular focus on their competencies that influence sustainable competitive advantage. A phenomenological method was employed to illuminate the lived experiences of these leaders and reveal how their competencies shape competitive advantage. A constructivist lens in this study provides an opportunity to delve into multiple perspectives on the competencies of strategic leaders in a pharmaceutical organisation (Creswell & Creswell, 2017). Therefore, this is a phenomenological study of the lived experiences of strategic leaders in a pharmaceutical company which seeks to unearth how these leaders manifest their competencies to influence sustainable competitive advantage. The reasoning as to why this paper is exploratory is because the paper aims to explore how competencies of strategic leadership can be used as the source of sustainability at Alpha Pharm in Durban. As little is known about strategic leadership competencies at Alpha Pharm in Durban, this study’s exploratory nature becomes evident. We aimed to explore and identify these competencies as potential sources of sustainability for Alpha Pharm.

3.1. Study population

The target population is the population from which the sample will be drawn (Ritchie et al., 2014). The target population for this study included the strategic managers at Alpha Pharm Durban branch. The reason behind selecting the Alpha Pharm Overport branch as the study site is because it is one of the critical distribution pharmaceutical centres in South Africa, which was convenient for data collection.

3.2. Sampling procedures

This paper selected participants using a non-probability, purposive sampling technique. Using a method of sampling designed to maximize diversity, we were able to recruit people with a wide variety of backgrounds and perspectives on the issue at hand. Participants were chosen from the Alpha Pharm Durban branch because of their expertise in pharmaceutical leadership. According to Cohen et al. (2017), a non-probability pattern derives from the researcher focused on a particular institution, unaware that it does not represent the broader populace; it sincerely means itself.

3.3. Data collection techniques

Data were collected mainly through interviews in this study. Semi-structured interviews using an interview guide were conducted with strategic leaders to collect primary data. In addition, in-depth, face-to-face semi-structured interviews with individual strategic managers were recorded on a digital recorder to ensure accuracy. According to Griffee (2012), a semi-structured interview means questions are predetermined, but the interviewer is free to ask for clarification and add follow-up questions. In semi-structured interviews, the researcher has a list of themes and questions to be covered, although these may vary from interview to interview (Saunders et al., 2016). Therefore, this means that the researcher may omit some questions, given a specific organisational context that is encountered and focus more on aspects without clarity to build a holistic understanding. The order of questions may also vary depending on the conversation flow.

One of the responsibilities of any qualitative researcher is to create a high level of consistency in the study. Consistency is essential to prevent errors from occurring in a study. The research quality in this study was guided by Guba’s model of trustworthiness (Flick, 2014). Guba (1981) model outlines four features of trustworthiness: credibility, dependability, transferability and conformability.

3.4. Data analysis

Qualitative data from interviews were initially transcribed before analysis. Qualitative data refers to all non-numeric data or data that have not been quantified (Saunders et al., 2016). This study analysed data using thematic analysis (Given, 2008). Thematic analysis is a data reduction and analysis strategy by which qualitative data are segmented, categorized, summarised, and reconstructed in a way that captures the essential concepts within the data set (Given, 2008).

Thematic analysis is a method for identifying and analysing patterns in qualitative data (Clarke & Braun, 2013). Clarke and Braun (2013) view thematic as theoretically flexible because the search for and examination of patterning across language does not require adherence to any theory of language or explanatory meaning framework for human beings, experiences or practices. This analysis technique allows the researcher to analyse data from documented information and its properties (Sekaran & Bougie, 2016). Thematic analysis is so flexible that it can be conducted in several different ways. Thematic analysis can straddle three main continua along which qualitative research approaches can be located: inductive versus deductive or theory-driven data coding and analysis, an experiential versus critical orientation to data, and an essentialist versus constructionist theoretical perspective (Braun et al., 2014). As of this stage, the thematic analysis used in this study was inductive to identify codes that were subsequently grouped into themes derived from patterns in the data reflecting strategic leaders’ competencies and how these influenced the sustainability of competitive advantage. This is because there was no pre-determined framework to guide data analysis.

4. Findings and discussion

The competencies of strategic leadership to sustain competitive advantage have been reported. In particular, four competencies identified in this study are (1) strategic thinking, (2) emotional intelligence, (3) managing diversity and (4) promoting collaborative leadership.

The first key finding in this study is that various competencies of strategic leadership influence the sustainability of competitive advantage in multiple ways. The competencies of strategic thinking influence competitive advantage by making sense of the internal and external environment, being open and accepting change (adaptive capacity), and building a new source of growth and profit. Amos (2013, p. 417) asserts that strategic thinking competencies relate to a strategic leader’s transformational role. It is essential to highlight that strategic thinking requires a rational level of agreement in the collective work’s shared aim, mission or goal. In any effort to sustain competitive advantage, observing the reality, identifying and defining strategic problems or areas of change regarding the reasoning or thinking of how an organisation competes is essential. Therefore, this is the foundation of loyalty but also organisational social responsibility.

The industry changed with Single Exit Price (SEP) pricing … . It became highly regulated where bonusing of discounts were disallowed by government. We had to change the way we approach business. We had more synergy to be able to do our promotions and our marketing together within Alpha Pharma (Participant H).

The findings are explicit that the underpinning of an organisation’s strategic thinking is a good diagnosis of organisational problems and observation of reality and the competitive advantage to plan the system into the forthcoming. The competency of strategic thinking incorporated actions which showed how Alpha Pharma was also competing with highly regulated Single Exit Price (SEP) pricing, where the government disallowed the bonusing of discounts, and wholesalers such as City Medical, Pharmed and Khariwastan. In this regard, it is unsurprising that strategic thinking was also about building a new source of growth and profit for the organisation and realising ways of implementing strategies to compete ethically. Therefore, it is practical for strategic leadership to consider how strategic thinking adventures and investigate problems or areas of change to sustain rather than wear away competitive advantage on the market. Bajcar et al. (2015) reveal that processes of mental operationalisation of activities are mainly significant during organisational execution processes.

Second, strategic leadership was also engaged in emotional intelligence, which emanated from pressure between behavioural complexity to manage emotions of a team and leadership and organisational change in a competitive environment. Notably, Alpha Pharm was encountering competition from corporate chain stores Dis-chem, Clicks and Med-Rite in KwaZulu Natal, to mention a few. Therefore, this was crucial, especially when Alpha Pharma was still striving to make sales despite different forms of marketing, promotions, and sales competitions on the market. Situations like these cause the question of what innovative strategies should be created or create a new sustainable procurement as a competitive advantage.

One has to be sensitive these days in interacting with others. We have been taken over by the foreign entity. We are under new management with a corporate office now in Joburg … … new development starts at the management level or the higher positions … what the main executives expect.

Third, the competency of managing diversity (e.g., working with others from backgrounds, needs, and skill sets that vary widely) is valuable in sustaining competitive advantage if implemented correctly. As Alpha Pharma was restructuring to create geographical dimension, new responsibilities and reporting lines, it is interesting that this was accompanied by product line extension. For example, introducing the Alpha Clin range and new product lines introduced the companies over 18 000 Stock Keeping Units (SKUs) strategy. Diversity is often viewed as multiple sourcing (e.g. new products in the new markets and franchising) (Lysons & Farrington, 2016). It is essential for strategic leaders to bear in mind that what customers believe in and ethics influences their sustainability and how they respond to economic challenges they face. The diversification of Alpha Parma includes franchising and product development. Nevertheless, strategic leaders are advised to investigate underneath the adopted diversification strategies to measure the fundamental taken-for-granted systems which sustain a competitive advantage (Louw & Venter, 2013).

We were still three separate entities in competition to each other. if we went into Umtata we would have been competing with East London. We are one now … … that is important for Alpha Pharm to be able to provide retailers with good pricing and good margins (Participant C).

Promoting collective leadership was vital in sustaining competitive advantage as it set a channel of future leadership for future corporate social responsibility and good governance. In particular, promoting collective leadership was not simply strategic to meet corporate citizenship requirements but also opened business opportunities as a strategic partner of the future National Health Insurance. In this regard, leadership development is not just an in-ward focused competency as it has macro-environmental, business consequences. It is noticeable to the tension that leaders were also entering corporations for development. Nevertheless, this study did not noticeably promote collective leadership as a competency to sustain competitive advantage. Grille et al. (2015) posit that shared leadership is well thought-out as a promising idea that meets the increased complexity of the working environment. Thus, collective leadership should be aligned with the prerequisite to discovering and adventure new markets (Grille et al., 2015). There is also a need to focus on shared leadership and relationships to ensure the effective use of corporations as a tactical tool for business growth and survival.

The technique used in this research enabled us to delve more deeply into the perspectives of the experts who participated, but it prevented us from extrapolating their perspectives to other situations. Due to Covid-19-related constraints and limitations, the interviews were done through video conference, which may have reduced the amount of face-to-face time between the interviewer and the interviewee. In order to get a more complete picture of the strategic leaders’ outlook on strategic leadership, competitive advantage and sustainability leadership, additional empirical study analysing the daily lives, experiences, and opinions of other engaged agents including management teams, teachers, families, and students is required. In addition, future pharmaceutical leadership policies might be informed by comparative studies involving many regions and nations, each of which has its own policy on leadership and strategic management within the pharmaceutical industry.

5. Conclusions

This empirical study examines strategic leadership abilities in South Africa’s pharmaceutical business context from the perspective of major pharmaceutical strategic leaders active in pharmaceutical transformations, strategic vision, and technology. The results reveal that four competencies of strategic leadership, namely—strategic thinking, emotional intelligence, managing diversity and also promotion of collective leadership, influenced how sustainable competitive advantage was sustained at Alpha Pharma in Durban. The study concludes that strategic leadership is a critical source of competitive advantage in a pharmaceutical company as it builds internal capabilities while responding to the dynamic business environment. Areas for future research are proposed. In manifesting how strategic leadership competencies engage in strategic thinking, emotional intelligence, managing diversity and promoting collective leadership in sustaining competitive advantage at Alpha Pharma in Durban, the study has met the study’s first objective.

5.1. Recommendations

To accomplish the following tasks, the paper recommends that strategic leaders must have these competencies:

1. The functions of setting direction need internal synergy to respond to external change. Therefore, there is a need not only for an outward focus to explore the opportunity but also to build and exploit internal resources and capabilities.

2. Managing complexity in business is vital to sustaining competitiveness by balancing the tension between costs and sales and managing risks in the business portfolio before pursuing growth.

3. The building of human capital should be aligned to the requirement to explore and exploit future market demands. There is also a need to focus on building social wealth and relationships to ensure the effective use of partnerships as a vehicle for business survival and growth.

4. Managing cultural change should not only focus on artefacts (for example. logo, structure) or espoused values but also delve into the underlying values and basic assumptions that shape behaviours to sustain competitive advantage.

5.2. Contributions

This research study makes a substantial contribution to the existing body of knowledge regarding strategic leadership competencies in the pharmaceutical sector of South Africa. This statement underscores the significance of strategic thinking, emotional intelligence, diversity management, and the promotion of collective leadership in sustaining a competitive advantage. The findings of the study emphasise the significance of strategic leadership in influencing internal capacities to effectively adapt to the ever-changing corporate landscape. The comprehensive recommendations offer significant insights into the essential competencies that strategic leaders must possess in order to effectively navigate difficulties, develop human capital, facilitate cultural change, and identify and capitalise on future market demands. This study contributes to the existing body of knowledge regarding strategic leadership competencies within the pharmaceutical industry, focusing specifically on Alpha Pharm in Durban. Subsequent research endeavours have the potential to build upon the present work, thereby making additional contributions to this pivotal field of inquiry.

5.3. Theoretical implications

The empirical study’s findings make significant contributions to the theoretical discourse around strategic leadership in the pharmaceutical sector, particularly within the specific setting of South Africa. The identification of four primary talents (strategic thinking, emotional intelligence, managing diversity, and encouraging collaborative leadership) provides a more comprehensive comprehension of the leadership prerequisites necessary for achieving sustained competitive advantage. The data provides empirical evidence supporting the hypothesis that effective strategic leadership is contingent upon the ability to engage in strategic thinking, which encompasses a comprehensive comprehension of both the internal and external organisational landscape, as well as the incorporation of adaptive capabilities and inventive competencies. Moreover, the results of the study provide empirical evidence supporting the theoretical connections between emotional intelligence and the capacity to effectively navigate organisational change in the face of competitive pressures. The study also contributes to the theoretical knowledge of diversity management and its significance in sustaining a competitive edge, highlighting its crucial involvement in corporate restructuring, geographical development, and product diversification. Finally, the research highlights the significance of collaborative leadership as a means of facilitating future leadership and corporate social responsibility, in accordance with theories that support the idea of shared leadership in addressing intricate work settings. The aforementioned findings have made noteworthy contributions to the existing theoretical knowledge. However, they have also highlighted certain areas that warrant further investigation in order to expand our comprehension of strategic leadership competencies.

5.4. Practical implications

The implications of the study’s findings hold significant practical value for the pharmaceutical business, particularly for entities such as Alpha Pharma. The authors emphasise the significant importance of strategic thinking in sustaining a competitive edge, specifically in heavily regulated contexts such as Single Exit Price (SEP) pricing. Leaders must engage in ongoing evaluation of their strategic environment, actively discerning potential avenues for growth and potential risks, in order to foster innovation and maintain ethical competitiveness. Furthermore, the significance of emotional intelligence becomes apparent as a crucial skill in effectively navigating organisational change and external competition. This will facilitate the development of novel tactics and ensure the continuity of procurement in the presence of competitive forces. Furthermore, the strategic management of diversity holds significant importance in maintaining a competitive edge, as exemplified by the case study of Alpha Pharma, which highlights the advantages derived from diversified sourcing and product development. In conclusion, the advocacy for collective leadership has the potential to facilitate the implementation of corporate social responsibility and good governance in the future. This study emphasises the need of considering collaborative leadership as a strategic approach, not just for fulfilling corporate demands, but also for capitalising on company prospects, even within broader macro-environmental settings. Nevertheless, it is advisable to conduct additional study in order to have a more comprehensive comprehension of the significance of these talents in the realms of strategic leadership, competitive advantage, and sustainable leadership within various contexts.

5.5. Limitations and future research

The present study, while providing valuable insights, encountered certain limitations that also indicate potential avenues for future research. The study primarily focused on the viewpoints of a specific cohort of professionals within the pharmaceutical sector, hence constraining the applicability of the results to a broader population. The adoption of video conferencing as a result limits may have potentially influenced the level of communication depth and the quality of data gathered. Expanding the scope of study to encompass a wider range of stakeholders, including management teams, instructors, families, and students, would yield advantages in terms of obtaining a comprehensive comprehension of strategic leadership and sustainability within the industry. In addition, conducting comparative studies encompassing several areas and nations, each characterised by distinct policies pertaining to pharmaceutical leadership and strategic management, will contribute valuable insights to guide future policy-making in the pharmaceutical industry. Furthermore, further investigation is warranted about the significance of collaborative leadership in maintaining a competitive edge, as its treatment in this study was not sufficiently comprehensive. In conclusion, doing research on the fundamental mechanisms of varied tactics and their impact on maintaining a competitive edge would be a worthwhile area of study in the future.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Blessing Takawira

Blessing Takawira is a seasoned business management professional renowned for his expertise in procurement, supply chain management, and project management, augmented by a PhD in Business Management.

Macdonald Kanyangale

Macdonald Kanyangale has over fifteen years of hands-on senior management experience in multinational corporations such as British American Tobacco, the Red Cross, the Airline Industry, and the public sector. His last position before joining academia was in the public sector, where he was Deputy Executive Director for a state-owned enterprise in Malawi. He taught Strategic Management from 2011 at Rhodes Business School before joining UKZN.

Emmanuel Mutambara

Emmanuel Mutambara is a Senior Lecturer and Academic Leader for Research and Higher Degrees at the Graduate School of Business and Leadership. He joined UKZN in 2015 as a lecturer. He holds a PhD in Business Administration from North-West University, South Africa. He has supervised 45 Masters and 4 PhD students that graduated successfully.