Academic journal article International Journal of Marketing Studies

The Impact of Functional Competencies on Firm Performance of Pharmaceutical Industry in Jordan

Academic journal article International Journal of Marketing Studies

The Impact of Functional Competencies on Firm Performance of Pharmaceutical Industry in Jordan

Article excerpt

Abstract

This study aims to clarify the impact of functional competencies on the firm performance of the Jordanian pharmaceutical manufacturing companies, by using competencies framework (marketing competencies, research and development competencies, information system competencies, production competencies and human resources competencies). To address these issues, a field survey of 17 pharmaceutical manufacturing companies in Jordan was conducted with the use of structured questionnaires, data was gathered by sample consists of the Jordanian pharmaceutical manufacturing companies' managers. A total of 85 questionnaires were distributed to pharmaceutical manufacturing companies and 62 surveys were returned back at gross response rate of 72.94%. Various data analysis procedures were applied to test the hypothesis such as: descriptive statistics, simple regressions, and multiple regressions. Findings showed that there is a significant impact of the functional competencies on the firm performance, and explains (57.6%) of the variation in firm performance from the sample point view. Also, results showed that production competencies, research and development competencies, and marketing competencies have the most impact on the firm performance.

Keywords: functional competencies, marketing, R&D, firm performance, pharmaceutical companies, Jordan

1. Introduction

Current age is witnessing many rapid developments and changes on the economic, industrial, technological and human world, companies aspiring to meet the challenges of today's rapidly changing markets and increasing competition, require to find a competitive advantage that could lead their companies to a better performance than competitors, or at least, to some sort of benefits that satisfy ownership, shareholders, customers or any stakeholder in general. The pharmaceutical industry is considered one of the leading and principal economic sectors in Jordan. The year 1962 is considered the beginning of the Jordanian pharmaceutical industry, by the establishment of Arab Pharmaceutical Manufacturing Company (APMC), then Jordanian Association of Pharmaceutical Manufacturers (JAPM) was established in 1996, the mission of it is to support, develop and upgrade the Jordanian pharmaceutical industry to world-class standards through technology transfer, industry integration and the implementation of current good manufacturing practice, at present there are 17 pharmaceutical manufacturing companies and 81 drug stores in Jordan. The pharmaceutical sector in Jordan is primarily engaged in production of branded generics ranging from many dosage forms such as solids, semi-solids, liquids, aerosols, and injectable as well as producing various products under licensed products for multi-national companies. The importance of the sector in the economy can be understood from the fact that it is the second largest export industry in Jordan after garment manufacturing. Currently close to three-fourths of total pharmaceutical production is meant for exports. Generally speaking, the Jordanian pharmaceutical products are characterized by high quality standards; a number of active companies are exporting their products to the international markets. In recent years, more competition pressure was created with continuous growth of the local companies; also multinational companies have entered into marketing arrangements with the local companies. Innovation is a critical strategy for the pharmaceutical industry's survival, its success and commercial fortunes; it may refer to developing and advancing new products, or providing differentiation and variations on the products' characteristics or features, e.g. safety, cost, and quality...etc. Needless to say that innovation is essential to achieving growth, permanence and endurance in such challenging environment. Therefore, companies are constantly attempting to develop newly advanced and unique approaches to better perform and display flexibility, and response to the changing customers' needs and wants by improving current, as well as new products. …

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