Designing a Causal Model of Value-Based Competitiveness in Pharmaceutical Companies Based on Production System Efficiency

Ali  Eskandari; Houshang  Taghizadeh

Authors

Ali Eskandari Department of Management, Ta.C., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0000-0003-3475-7135
Houshang Taghizadeh Department of Management, Ta.C., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0000-0002-0963-0653

Keywords:

value, based competitiveness, production system efficiency, pharmaceutical companies

Abstract

In the pharmaceutical industry, competitiveness is no longer defined solely in terms of price and market share; rather, sustainable value creation for customers, quality improvement, supply responsiveness, and operational productivity are regarded as strategic competitive advantages. Nevertheless, many pharmaceutical companies face ambiguity regarding how production system efficiency contributes to the development of value-based competitiveness. Therefore, designing a causal model can clarify the relationships between the dimensions of production system efficiency and the components of value-based competitiveness and provide a basis for managerial decision-making and the enhancement of companies’ competitive performance. Accordingly, the purpose of this study was to design a causal model of value-based competitiveness in pharmaceutical companies based on production system efficiency. An exploratory mixed-methods research design was employed. In the qualitative phase, thematic analysis was used to identify the components shaping value-based competitiveness based on production system efficiency. Interviews were used as the data collection instrument in this phase. Sampling continued until theoretical saturation was reached, and 14 experts participated in the interviews. In the quantitative phase, confirmatory factor analysis and Interpretive Structural Modeling (ISM) were employed to design the causal model of value-based competitiveness in pharmaceutical companies based on production system efficiency. Quantitative data were collected using two questionnaires, which were distributed among the members of the statistical sample after their validity and reliability had been examined and confirmed. The statistical population in the quantitative phase consisted of managers and experts at different organizational levels of pharmaceutical companies across the country, from whom a sample of 260 participants was selected. The qualitative findings revealed eight main themes and 36 subthemes. In the quantitative phase, the results of Interpretive Structural Modeling indicated that the causal model of value-based competitiveness in pharmaceutical companies based on production system efficiency comprised six hierarchical levels. In this model, human capital and productivity culture demonstrated the greatest driving influence, whereas sustainability and stakeholder value creation exhibited the greatest dependence.

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