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.

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 An investigation of the uses of corporate reputation

2016 ◽  
Vol 19 (3) ◽  
pp. 357-376 ◽  
Author(s):  
Chen-Chu Matilda Chen ◽  
Bang Nguyen ◽  
T.C. Melewar
Keyword(s):  
Pharmaceutical Industry ◽  
Value Creation ◽  
Corporate Reputation ◽  
Brand Image ◽  
Corporate Communication ◽  
Three Dimensions ◽  
Firm Level ◽  
Content Type ◽  
Strategic Resources ◽  
Underlying Mechanisms

Purpose The purpose of this paper is to develop a conceptual model that examines the underlying mechanisms of the link between the uses of corporate reputation and brand image strategy, from the corporate communication perspective. The paper incorporates three kinds of uses of corporate reputation: value creation, strategic resources and corporate communication. Design/methodology/approach Using a qualitative approach, in-depth interviews were conducted with top executives in the pharmaceutical industry in Taiwan to investigate the effects of the uses of corporate reputation on brand image strategy from the managerial perspective. Findings Findings provide richness into forming the basis for developing a framework of the uses of reputation, with implications for managers and academics alike. The qualitative findings generally showed that three dimensions of the uses of corporate reputation (i.e. value creation, strategic resources and corporate communication) are applicable to managers’ brand image strategy implementation. For the Taiwanese pharmaceutical industry, the research highlights that value creation herein pertains to the value created for the firm, as cost/sacrifice value, symbolic/expressive value and experience/hedonic value. Originality/value Reputation is one of the most important concerns for pharmaceutical firms, as it develops and builds trust with key stakeholders. However, in the pharmaceutical industry context, the application and uses of corporate reputation is little researched. A need exists for research that examines the effects of the uses of corporate reputation at the firm level. This paper fills this important gap in developing a conceptual framework for the uses of corporate reputation in the pharmaceutical industry. In addition, most studies on the uses of corporate reputation in pharmaceuticals are in the contexts of Western countries, thus limiting the generalisablility. Taiwan is the context for the present study.

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.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

The effect of effectuation and causation approach on entrepreneurial orientation in the presence of leader dominance and self-efficacy

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ma Jun ◽  
Fitri Rini Ariyesti ◽  
Sumran Ali ◽  
Peng Xiaobao
Keyword(s):  
Entrepreneurial Orientation ◽  
Self Efficacy ◽  
Scale Up ◽  
Chief Executive ◽  
Three Dimensions ◽  
Chinese Firms ◽  
Strategic Manoeuvring ◽  
Firm Level ◽  
Content Type ◽  
Leader Traits

Purpose Entrepreneurial orientation (EO) has witnessed a daunting rise in firm-level practices; to some extent, it has been augmented by the factors such as globalization and technological shift. The wide variety of literature has explained the importance of EO for firm performance. However, it has not yet been explored at a firm-level the approaches of causation and effectuation through the prism of leader traits such as leader dominance and self-efficacy as administrative ability and EO as strategic manoeuvring with strategic decisions obliged as a spin of firms. Design/methodology/approach The authors used the quantitative method to analyse the proposed relationships. For this reason, the authors targeted the Chinese firms to collect the data through the semi-structured survey from December 2020 to March 2021 and contributed to the literature by investigating 480 valid responses of leaders from Chinese firms. Findings The findings support the incorporated view of causation and effectuation on EO, which serve as vital strategic manoeuvring along with leader traits for firm stability and growth. Practical implications This study assists the decision-makers (including the top management team, Chief Financial Officer and Chief Executive Officer choose the particular approach (effectual or causal) to create the new venture/new product/new process or scale up the existing firm on another level for optimal benefits by considering their existing resources. Originality/value EO is a unidirectional process with three dimensions: innovativeness, proactiveness and risk-taking that could directly favour the firm by considering the well-known approaches (effectuation and causation) in crisis circumstances (like Covid-19). These approaches help the executives enhance their firm’s performance and maintain its sustainability and stability in crisis conditions by effectively using the available resources within its boundaries.

Does board gender diversity affect the transparency of corporate political disclosure?

2018 ◽  
Vol 26 (4) ◽  
pp. 444-463 ◽  
Author(s):  
D.G. DeBoskey ◽  
Yan Luo ◽  
Jeff Wang
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Gender Diversity ◽  
Political Activity ◽  
Political Contributions ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Ethics Research ◽  
Board Gender Diversity

Purpose The purpose of this paper is to examine the influence of board gender diversity on the transparency of corporate political disclosure (CPD). Design/methodology/approach Two empirical proxies, CPD transparency and policy transparency, are constructed from a data set jointly produced by the Center of Political Activity and the Carol and Lawrence Zicklin Center for Business Ethics Research. The CPD transparency score measures the level of transparency in voluntary corporate disclosure of the amount of political contributions and the identity of the recipients as well as the titles and names of the executives who authorize the political spending. The policy transparency score measures the level of transparency in the voluntary disclosure of the policies governing corporate political spending. Board gender diversity is measured by the percentage of women on the board of directors. Findings Higher proportions of female directors are associated with more transparent disclosure of political contributions after controlling for a set of corporate governance and firm-level variables. Originality/value This study is the first to examine whether and how gender-diversified boards enhance the transparency of CPD. It contributes to the literature by providing evidence that gender-diversified boards enhance corporate governance.

Exploring innovation creation across rural and urban firms

2018 ◽  
Vol 7 (4) ◽  
pp. 357-376 ◽  
Author(s):  
Giri Aryal ◽  
John Mann ◽  
Scott Loveridge ◽  
Satish Joshi
Keyword(s):  
National Survey ◽  
Negative Binomial ◽  
Secondary Data ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Rural And Urban ◽  
Wide Range ◽  
Rural Firms ◽  
Urban Firms

Purpose The innovation creation literature primarily focuses on urban firms/regions or relies heavily on these data; less studied are rural firms and areas in this regard. The purpose of this paper is to employ a new firm-level data set, national in scale, and analyze characteristics that potentially influence innovation creation across rural and urban firms. Design/methodology/approach The authors use the 2014 National Survey of Business Competitiveness (NSBC) covering multiple firm-level variables related to innovation creation combined with secondary data reflecting the regional business and innovative environments where these firms operate. The number of patent applications filed by these firms measures their innovation creation, and the paper employs a negative binomial regression estimation for analysis. Findings After controlling for industry, county and state factors, rural and urban firms differ in their innovation creation characteristics and behaviors, suggesting that urban firms capitalize on their resources better than rural firms. Other major findings of the paper provide evidence that: first, for rural firms, the influence of university R&D is relevant to innovation creation, but their perception of university-provided information is not significant; and second, rural firms that are willing to try, but fail, in terms of innovation creation have a slight advantage over other rural firms less willing to take on the risk. Originality/value This paper is one of the first to analyze the 2014 NSBC, a firm-level national survey covering a wide range of innovation-related variables. The authors combine it with other regional secondary data, and use appropriate analytical modeling to provide empirical evidence of influencing factors on innovation creation across rural and urban firms.

The effect of industry association on firm innovation in Chinese private ventures

2019 ◽  
Vol 57 (9) ◽  
pp. 2414-2435
Author(s):  
Wenge Zhang ◽  
Jun Li ◽  
Yiyuan Mai
Keyword(s):  
Moderating Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Data Set ◽  
Industry Association ◽  
Content Type ◽  
Emerging Industries ◽  
Practical Implications ◽  
Firm Learning

Purpose The purpose of this paper is to examine the relationship between industry association membership and firm innovation in Chinese private ventures. A secondary objective is to investigate potential moderating effects of firm learning practices and founder characteristics on the above relationship, and to draw out implications for policymakers and practitioners. Design/methodology/approach The paper utilizes data from a sample of 567 Chinese entrepreneurial firms operating in 9 designated emerging industries. Hierarchical regression models were employed to analyze the effect of industry association membership on firm innovation, and the potential moderating effects. A 2SLS procedure was adopted to control for potential endogeneity issue. Supplemental analyses were conducted to ensure the robustness of the findings. Findings The paper provides empirical insights about how industry association membership, along with firm learning practice and founder leadership, affect firm innovation in Chinese private ventures in emerging industries. It suggests that industry association membership positively affects firm innovation. Further, there is a three-way interaction effect of industry association membership, learning practice and founder power on innovation. Research limitations/implications Due to the design of the data set, there are some limitations. First, the study only considered whether a firm belongs to an industry association, but not the nature of such membership (length, firm status in the association, etc.). Second, the cross-sectional design may limit the power of the study to make casual implications about the tested relationships. Practical implications The paper provides important practical implications for policymakers and entrepreneurs in China. In general, the results suggest that private ventures pursuing innovation in emerging industries can benefit from industry associations, and entrepreneurs shall actively engage in firm-level and personal-level learning. For policymakers, the study suggests that to foster innovation in an emerging industry, special attention shall be paid to building necessary institutional support to develop and to strengthen the role of industry association in the industry. Originality/value This paper fulfills an important gap in the literature in that it is one of the first, which investigates the role of the industry association in firm innovation, especially in a non-western context. This paper provides new insights into the role of industry association and firm innovation in an under-researched developing economy context.

Do innovative activities matter to Indian drug and pharmaceutical firms? An application to export performance

2017 ◽  
Vol 13 (4) ◽  
pp. 193-205
Author(s):  
Shilpi Tyagi ◽  
DK Nauriyal
Keyword(s):  
Pharmaceutical Industry ◽  
Rapid Growth ◽  
Export Performance ◽  
Innovative Activity ◽  
Financial Data ◽  
Pharmaceutical Companies ◽  
Firm Level ◽  
The Real ◽  
Pharmaceutical Firms ◽  
New Evidence

This paper analyzes the R&D and exports profile of Indian drug and pharmaceutical industry during the period 2000–2014. The present paper examines how R&D expenditure and patent impact export performance of the Indian drug and pharmaceutical firms. The study period from 2000 to 2014 has been characterized by a rapid growth in industry’s innovative activity, as part of the strategic shift, induced by the Patents (Amendment) Act, 2005. Using the real financial data for the top 91 publicly listed Indian domestic pharmaceutical companies, the study provides new evidence on firm-level export performance of the Indian drugs and pharmaceutical industry. Generalized Method of Movements estimator developed by Blundell and Bond is applied. The empirical findings of the study reveal that increased R&D intensity, higher patent count and firm’s size are important determinants of firm-level export performance.

Customer loyalty and value anticipation: does perceived competition matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ishmael Ofoli Christian ◽  
Thomas Anning-Dorson ◽  
Nii Nookwei Tackie
Keyword(s):  
Customer Value ◽  
Banking Sector ◽  
Value Theory ◽  
External Boundary ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Attitudinal Loyalty ◽  
Situational Effects ◽  
Bank Marketing ◽  
The Impact

PurposeDrawing on customer value theory and the demanding nature of today's customers, this paper examines the moderating effects of competition, as perceived by customers, on the nexus between customer value anticipation (CVA), satisfaction and loyalty.Design/methodology/approachUtilizing data from the Ghanaian banking sector, which has been going through some reforms that are changing the banking landscape, the study analyzes data from 587 customers. Respondents were drawn from a cluster of banks within an enclave with different types of customers and epitomize the competitive nature of Ghana's banking sector.FindingsCVA drives customer satisfaction, attitudinal loyalty and behavioral loyalty among bank customers. However, between attitudinal and behavioral loyalty, customers will be more behaviorally loyal to banks that successfully anticipate their needs than they would be in attitude. The relationships between CVA and satisfaction and loyalty are such that the level of competition among sector players does not alter the effect; thus, when a bank is able to anticipate customer value, customers are going to stay loyal to such a bank irrespective of the competitive offers.Originality/valueAlthough the impact CVA has on satisfaction and loyalty is justified in the existing literature, extant research has not systematically examined the influence of external boundary and situational effects on the potency of anticipating customer value in detail. The current study shows the effect of competition on CVA and customer behavioral outcome. The study further concludes that irrespective of competition, banks that are perceived to be high on CVA will have their customers being loyal. This is very important in the development of bank marketing and product innovation strategies.

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