Determining the structure of pharmaceutical industry in Iran

2019 ◽  
Vol 13 (1) ◽  
pp. 101-115
Author(s):  
Sara Emamgholipour ◽  
Lotfali Agheli
Keyword(s):  
Pharmaceutical Industry ◽  
Economies Of Scale ◽  
Monopolistic Competition ◽  
Pharmaceutical Market ◽  
Data Availability ◽  
Market Demand ◽  
Firm Level ◽  
Content Type ◽  
Measure Concentration ◽  
Pharmaceutical Industries

Purpose As the pharmaceutical industry is one of the key sectors of the health-care system, the identification of its structure is of particular importance. This paper aims to determine the structure of the pharmaceutical industry in Iran to provide appropriate solutions for pricing and regulation by policymakers. Iran is a growing pharmaceutical market with over $4bn in sales, so the supply side needs to be examined to meet the domestic consumption. Design/methodology/approach This research is a descriptive and retrospective analytical study which examines the Iranian pharmaceutical industry through library studies and using pharmaceutical data of the country’s Food and Drug Administration during 1992-2016. Due to data availability in firm level, the concentration ratio of N leading firms and the Herfindahl–Hirschman index are used to measure the concentration of the pharmaceutical market in 2014 and 2016. Findings The results show that pharmaceutical manufacturing, importing companies and distributing companies play roles in monopolistic competition market, loose oligopoly market and oligopoly market, respectively. For all companies, the magnitudes of Herfindahl–Hirschman indices indicate non-competitive settings. As a result, these companies set their own prices, and market demand affects their sales. In addition, demand for medicines is shaped in the form of supply-induced demand. Research limitations/implications This research was accomplished with no computational limitation. However, it was confined to only one country, one industry and the mentioned period of study. Practical implications The pharmaceutical manufacturers have no influence on medicine prices, and government pricing regulations lessen the market power of such market agents. However, the easy entry to and exit from market stimulate producers to participate in manufacturing activities. The pharmaceutical importers may expand their imports in response to entry new actors; however, the new entrants weaken the coordination on pricing decisions. Social implications As pharmaceutical distributers act in an oligopoly market, they can collude, reduce competition and lower the welfare of pharmaceutical consumers. In such conditions, high investment requirements and economies of scale may discourage the entry of new firms. Originality/value Although there are various studies on market structure in non-pharmaceutical industries, this study is a new effort to measure concentration in the Iranian pharmaceutical market and to determine its structure.

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

2018 ◽  
Vol 67 (9) ◽  
pp. 1566-1584 ◽  
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Regression Analysis ◽  
Quantile Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Data Availability ◽  
Firm Level ◽  
Liquidity Management ◽  
Ols Regression ◽  
Content Type ◽  
Quantile Regression Analysis

PurposeThe management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia.Design/methodology/approachData are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose.FindingsAnalysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels ofθ=0.10 and 0.90. Atθ=0.10, only profitability, tangibility and firm status are significant, while atθ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels.Originality/valueTo the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis.

Impact of human resource development (HRD) practices on pharmaceutical industry’s performance

2019 ◽  
Vol 43 (1/2) ◽  
pp. 188-210 ◽  
Author(s):  
Frank Nana Kweku Otoo ◽  
Evelyn Akosua Otoo ◽  
Godfred Kwame Abledu ◽  
Akash Bhardwaj
Keyword(s):  
Pharmaceutical Industry ◽  
Organizational Performance ◽  
Human Resource Development ◽  
Human Resource ◽  
Structural Equation ◽  
Employee Performance ◽  
Resource Development ◽  
Equation Modeling ◽  
Content Type ◽  
Pharmaceutical Industries

Purpose The purpose of this paper is to examine the mediating role of employee performance in the association between human resource development (HRD) practices and organizational performance. Design/methodology/approach An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 700 employees of the selected pharmaceutical industries. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis. Findings The results indicate that some HRD practices influence organizational performance through their impact on employee performance. The study further revealed that employee performance mediates the association between HRD practices and organizational performance. Research limitations/implications The research was undertaken in the pharmaceutical industry and the analysis is based on cross-sectional data, which cannot be generalized across a broader range of sectors. Practical implications The findings of the study have the potential to help policy makers, stakeholders and management of pharmaceutical industries in adopting properly and well-articulated HRD practices to enhance the quality of human capital and create sustainable competitive advantage. Originality/value This study extends the literature by adducing evidence empirically that employee performance mediated the association between HRD practices and organizational performance of the pharmaceutical industry in Ghana.

Relational capital quality and client loyalty: firm-level evidence from pharmaceuticals, Pakistan

2016 ◽  
Vol 23 (1) ◽  
pp. 43-60 ◽  
Author(s):  
Shujaat Mubarik ◽  
VGR Chandran ◽  
Evelyn S Devadason
Keyword(s):  
Pharmaceutical Industry ◽  
Client Satisfaction ◽  
Three Dimensions ◽  
Relational Capital ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Attitudinal Loyalty ◽  
Pharmaceutical Firms

Purpose – This study aims to examine the influence of relational capital quality on client loyalty, comprising both behavioral and attitudinal, in the pharmaceutical industry of Pakistan. Design/methodology/approach – The partial least squares technique is used to test the relationship using a sample of 111 pharmaceutical firms. We applied a non-parametric procedure, the bootstrapping method, to estimate the coefficient path of the relationships. Appropriate construct measures were used based on past studies to measure the dimensions of relational capital quality and client loyalty. Findings – The findings suggest that relational capital quality significantly affects client loyalty. All three dimensions of relational capital quality, commitment, satisfaction and trust, have a significant and positive influence on both attitudinal and behavioral loyalty. However, client satisfaction is found to exert the strongest impact on behavioral and attitudinal loyalty. Practical implications – It is important for the pharmaceutical firms in Pakistan to improve client satisfaction to establish behavioral loyalty and sustain their clientele base. Trust and commitment should be managed independently, depending on the focus of firms, either attitudinal loyalty or behavioral loyalty. Originality/value – This study is among the few that was able to empirically examine the role of various dimensions of relational capital quality in influencing clients’ attitudinal and behavioral loyalty. In addition, the study uses a new firm-level data set, compiled from a survey of the pharmaceutical industry in Pakistan, which is currently facing challenges in terms of customer–supplier sensitivity.

Integrating the HACCP and SPC for hazard control and process improvement: a case of pharmaceutical industry

2020 ◽  
Vol 14 (4) ◽  
pp. 561-586
Author(s):  
Manjeet Kharub
Keyword(s):  
Pharmaceutical Industry ◽  
Production Process ◽  
Hazard Analysis ◽  
Rejection Rate ◽  
Content Type ◽  
Pareto Analysis ◽  
Integrated Framework ◽  
Drug Production ◽  
Pharmaceutical Industries

Purpose The purpose of this study is to integrate two well-established frameworks with an aim to reduce the unwanted rejection rate recurring in the drug production process in pharmaceutical industries. The effectiveness of an integrated framework has been demonstrated by a real-time case study in a complex industrial environment, providing a platform for quality tools application in the pharmaceutical industry. Design/methodology/approach The hazard analysis and critical control points (HACCP) provided a basic framework for hazard analysis and its blending with statistical process control (SPC) aided in data-driven decision-making. The extensive brainstorming and Pareto analysis helped to identify potential critical-to-quality characteristics followed by SPC, x¯ and R charts, histograms and Cp and Cpk analysis to spot the critical control point. The fishbone diagram led to the extraction of the leading cause behind the identified problem. Then, based on recommended corrective actions, control limits were adjusted and the process was brought into control. Finally, a product-based cost analysis is also performed to illustrate the financial impact resulting from the proposed method’s successful implementation. Findings The integrated framework is applied to a drug production process which has a higher rejection rate (3%) because of the non-conformities. Based on Pareto analysis, potential failure causes were classified and prioritised as inappropriate composition (2.54%), packaging (0.35%), out-of-specification (0.069%), equipment failure (0.022%), input materials (0.018%) and miscellaneous (0.002%). It is found that 84% of the total rejection rate is contributed by inappropriate composition. After taking corrective actions, it is observed that the proposed method has helped to reduce the process rejection rate significantly (2.54-0.82%). In the monetary terms, 2.50% decline per unit costs is noted in this case study work. The proposed integrated framework’s success is further motivating other pharmaceutical industries to implement and expand it to other processes. Originality/value The case study is an attempt to contribute to the existing literature of quality management in pharmaceutical industries. In particular, it is a novel example to introduce the simple and user-friendly SPC tool into well-established HACCP framework to enhance its effectiveness in hazard identification. The case study results motivate managers to adopt quality techniques for achieving a higher quality standard and operational excellence.

scholarly journals Network interactions for pharmaceutical market access: findings from an explorative research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Runfola ◽  
Simone Guercini ◽  
Matilde Milanesi
Keyword(s):  
Pharmaceutical Industry ◽  
Market Access ◽  
Pharmaceutical Market ◽  
Primary Data ◽  
Pharmaceutical Companies ◽  
Business Network ◽  
Specific Content ◽  
Content Type ◽  
Industrial Marketing ◽  
A Company

Purpose The purpose of this paper is to investigate pharmaceutical market access (MA) and the interaction between the pharmaceutical company and other business and non-business actors (NBAs) involved in the MA of ethical drugs, to identify the main categories of actors, their role for MA and the content of the interaction, adopting an industrial marketing approach. Design/methodology/approach A qualitative interpretivist approach is adopted, with interviews as the primary data collection method: 36 interviews have been conducted with 16 key informants from the pharmaceutical industry. Findings The findings of this study reveal that (i) MA can be seen as a relational-driven activity with specific features owing to the highly regulated nature of the pharmaceutical industry, (ii) there is a multiplicity of business, and NBAs involved in the MA activities with whom pharmaceutical companies interact to acquire knowledge, legitimacy and make MA timely and effective, and (iii) the interaction with each category of actors has specific content. Originality/value This paper advances the debate on the marketing and management of pharmaceutical companies by emphasizing the importance of MA and the need to conceptualize it according to an industrial marketing perspective, revealing the interdependencies among actors for MA and the content of the interaction. It also contributes to the industrial marketing literature that has recently stressed the importance of NBAs as part of the extended business network of a company by identifying different categories of actors, their role in terms of knowledge and legitimization and the features and the trade-off of the extended business network in highly regulated markets.

Outward FDI from small developing economies

2016 ◽  
Vol 11 (4) ◽  
pp. 693-714 ◽  
Author(s):  
Ramon Padilla-Perez ◽  
Caroline Gomes Nogueira
Keyword(s):  
Empirical Evidence ◽  
Economies Of Scale ◽  
Home Country ◽  
Developing Economies ◽  
Investment Strategy ◽  
Business Environment ◽  
Costa Rican ◽  
Outward Fdi ◽  
Firm Level ◽  
Content Type

Purpose Foreign direct investment (FDI) from developing economies has increased sharply since the beginning of the 2000s. While most investment flows correspond to firms from large economies, small developing economies have also witnessed the increase of outward investment flows from their domestic companies. The literature on outward FDI (OFDI) from developing economies has focused mainly on large emerging countries, such as China and India. In the case of small developing economies, for which there is scant empirical evidence, firms willing to invest abroad face a different business environment with several barriers such as a small domestic market to achieve economies of scale and a limited supply of specialised resources. In this setting, the purpose of this paper is to examine firm-level strategies and the home-country effects in a small developing economy. Design/methodology/approach A research case study is conducted through a representative sample of Costa-Rican firms investing abroad. Costa Rica makes a strong case since it stands out among small developing economies investing abroad in terms of both the number of operations and the amount of OFDI. Findings The main findings are: outward investment is not only for large and mature firms, as medium and small-sized firms are actively investing abroad; most firms pursue a market-seeking strategy; the benefits for the firm and the home country are stronger when companies follow a clear outward investment strategy; and there is a positive relationship between international trade and OFDI. Originality/value This paper provides novel empirical evidence to better understand an emerging trend in OFDI: in an increasingly integrated world economy, even SMEs from small developing economies are compelled to internationalise their operations in order to compete successfully.

An international study of the response of corporate payout policy

2019 ◽  
Vol 15 (3) ◽  
pp. 335-349 ◽  
Author(s):  
Edward Hoang ◽  
Indrit Hoxha
Keyword(s):  
Large Scale ◽  
Payout Policy ◽  
Data Availability ◽  
Firm Level ◽  
Corporate Financing ◽  
Content Type ◽  
Public Firms ◽  
Financing Decisions ◽  
The World ◽  
Debt Policies

Purpose The purpose of this paper is to study the payout policy for public firms in different countries. The authors are interested to understand the similarities and differences in the behavior of firms across different countries. Design/methodology/approach The authors use firm-level data collected from Compustat Global for public firms across the world. The sample consists of more than 23,000 firms for the period 1990–2015 in 94 countries. The authors estimate the corporate payout in an empirical model that incorporates other corporate financing decisions, such as investment and debt policies. Findings The findings support recent corporate governance theory, which asserts that payout policy is influenced by investment and debt policies, and cannot be determined independently. Furthermore, the authors find that geographic/cultural/institutional variation influence the response of payout policy to other corporate financing decisions. Additional tests are presented to demonstrate the robustness of the main findings. Research limitations/implications The interpretation of the results for certain regions could be limited due to data availability. The authors believe the authors have a good coverage especially for countries in Asia, relative to the other regions. Originality/value To the best of our knowledge, this study is the first one to look at payout policy and its relationship with investment and debt policy in such a large scale of firms across the world with coverage of 94 countries and 16 years. The authors document differences in public firms’ attitudes toward payout policy according to geographic/cultural/institutional reasons.

Firm level profitability determinants in Indian drugs and pharmaceutical industry

2017 ◽  
Vol 11 (3) ◽  
pp. 271-290 ◽  
Author(s):  
Shilpi Tyagi ◽  
D.K. Nauriyal
Keyword(s):  
Pharmaceutical Industry ◽  
Fixed Effects ◽  
Positive Influence ◽  
Working Environment ◽  
Raw Material ◽  
Investment Strategies ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Fixed Effects Regression

Purpose This paper aims to analyze the firm level determinants of profitability of Indian drug and pharmaceutical industry which is known for historically weak R&D initiatives. Design/methodology/approach The change in the economic environment brought out by the Trade-Related Intellectual Property Rights (TRIPS) compliance, this industry was found to have fast adjusted to a new working environment by substantially modifying its strategies. This study aims at using inflation-adjusted panel data for a period 2000-2013 and applies the fixed effects regression model with cluster standard errors. Findings The study has found that export intensity, A&M intensity, firm’s market power and stronger patent regime dummy have exercised positive influence on profitability. The negative and statistically significant influence of R&D intensity and raw material import intensity points to the need for firms to adopt suitable investment strategies. Research limitations/implications The study suggests that firms are required to pay far more attention to optimize their operating expenditures, advertisement and marketing expenditures and improve their export orientation, as part of the long-term strategy. Originality/value This study uses a recent data-set to analyze the firm level profitability determinants in the Indian pharmaceutical industry and captures the effect of change in profitability pre and post-TRIPS.

scholarly journals SPECIFICS OF MARKETING OF PHARMACEUTICAL INDUSTRY

2020 ◽  
Vol 1(13) ◽  
pp. 86-91
Author(s):  
Natalia Zadorozhniuk ◽  
◽  
Iryna Malysh ◽  
Iana Minieieva ◽  
◽  
...  
Keyword(s):  
Pharmaceutical Industry ◽  
Systems Approach ◽  
Graphical Representation ◽  
Pharmaceutical Market ◽  
Pharmaceutical Marketing ◽  
Practical Significance ◽  
Pharmaceutical Companies ◽  
Market Demand ◽  
Global Trends ◽  
Industrial Enterprises

The article substantiates the relevance and necessity of studying the specifics of marketing of pharmaceutical companies. The purpose of the article is to determine the specifics and features of modern pharmaceutical marketing. The features of the modern pharmaceutical industry of countries with market economies have been given. The modern tendencies and features of development of the world pharmaceutical market have been defined. The key problems of the pharmaceutical market of Ukraine and the priorities of its development taking into account the expediency of using marketing tools have been considered. Among the identified priorities are important to increase the competitiveness of products and enterprises of the pharmaceutical industry through qualitative changes and innovations; ensuring the innovative development of industrial enterprises in this industry; application of creative approaches. Features of pharmaceutical marketing have been given. The interests of the subjects of the modern pharmaceutical market are combined into a "complex" covering two levels. The interaction of the main subjects of the pharmaceutical market has been studied. The main forms of marketing in the pharmaceutical industry have been considered. The article uses methods of analysis, grouping and systems approach. The scientific novelty of the work is reflected in the proposals of the authors to combine the interests of all actors in the modern pharmaceutical market in a certain complex, which covers two levels; building a graphical representation of all possible links between the subjects of the pharmaceutical market. The practical significance of the article lies in the possibility of implementing the priorities of the pharmaceutical market in our country, taking into account the feasibility of using marketing tools. It has been noted that most pharmaceutical manufacturers do not implement the third form, because all functions related to marketing are performed by intermediary networks. We see prospects for further research in the study of international experience of cooperation of pharmaceutical companies, a detailed consideration of global trends in pharmacy. Keywords: marketing, pharmaceutical industry, pharmaceutical market, demand, forms of marketing application, pharmaceutical market subjects

Corporate governance and the variability of stock returns

2014 ◽  
Vol 10 (4) ◽  
pp. 494-510 ◽  
Author(s):  
Hardjo Koerniadi ◽  
Chandrasekhar Krishnamurti ◽  
Alireza Tourani-Rad
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Stock Option ◽  
Data Availability ◽  
Firm Level ◽  
Policy Makers ◽  
Content Type ◽  
Governance Quality ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze the impact of firm-level corporate governance practices on the riskiness of a firm's stock returns. Design/methodology/approach – The authors constructed an index of governance quality incorporating best practices stipulated by regulators. The authors employed regression analysis. Findings – The empirical evidence, using an index of corporate governance, shows that well-governed New Zealand firms experience lower levels of risk, ceteris paribus. In particular, the results indicate that corporate governance aspects such as board composition, shareholder rights, and disclosure practices are associated with lower levels of risk. Research limitations/implications – A limitation of the study is that the corporate governance index constructed is somewhat arbitrary and due to limitation of data availability the authors may have excluded some factors such as share trading policy of directors and policies regarding provision of non-auditing services by auditors. The research supports the view that institutional context could have an impact on governance outcomes. The work has three implications for managers, investors, and policy makers. First, the results imply that well-governed firms have lower idiosyncratic risk and that this reduction is most likely due to the reduction in agency costs and information risk. Second, in the absence of features like an active corporate control market and stock option based managerial compensation, managers have little incentives to take on risky projects that increase firm value. Third, the results suggest that the managers of well-governed firms are not more risk averse with respect to investment decisions compared to poorly governed firms. Practical implications – The work has practical implications for managers, investors, and policy makers. Well-governed firms face lower variability in stock returns compared to poorly governed firms. Firms that have independent boards that protect its shareholders’ rights and disclose its governance-related policies experience lower firm-level risk, other things being equal. Originality/value – This study is the first one to examine the impact of a composite measure of corporate governance quality on stock return variability in a non-US setting. The results suggest that firms can use specific corporate governance provisions to mitigate firm-level risk. The findings of the paper are therefore relevant and useful to corporate managers, investors, and policy makers.

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