Domestic market competitiveness of Indian drug and pharmaceutical industry

Mahajan, Varun; Nauriyal, D. K.; Singh, Sanjay Kumar

doi:10.1007/s11846-018-0299-7

Cited by 9 publications

(9 citation statements)

References 54 publications

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“…These findings are contrary to the Pal et al (2018) study on the same issue. In one of our study (Mahajan et al, 2018) conducted with similar sample and time period but on the issue of efficiency of IPI, also found similar results as far as the significance of age, export intensity and the new patent regime are concerned. The above study supported our argument that these variables have a negative effect on the performance of the IP firms.…”

Section: Determinants Of Productivitysupporting

confidence: 78%

“…Chakraborty and Ghose (2017) analysed output growth and the associated endogenous structure breaks of IPI using modern time series econometric analysis. On the other hand, there are some studies, which have applied nonparametric data envelopment analysis (DEA) to measure efficiency and productivity of the IPI (Majumdar, 1994;Saranga and Phani, 2009;Saranga, 2007;Saranga and Banker, 2010;Pannu et al, 2010;Tripathy et al, 2013;Mahajan et al, 2014Mahajan et al, , 2018González and Gasc on, 2004). using firm-level data, examined some characteristics of IPI such as the technical efficiency, technological gap ratio and productivity change of IPI and concludes that vertically integrated firms produce both bulk drug and formulation exhibit higher technological innovation and efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Is productivity of Indian pharmaceutical industry affected with the introduction of product patent act?

Mahajan

2020

IGDR

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Purpose The purpose of this paper is to empirically study the impact of product patent regime on the productivity of different categories such as ownership, R&D, size and product-wise of Indian pharmaceutical firms using non-parametric data envelopment analysis. Design/methodology/approach The present study has applied Ray and Desli’s Malmquist productivity index and its decomposition to measure total factor productivity (TFP) change, pure technical efficiency change, scale efficiency change and technical change under variable returns to scale (VRS) technology assumption for 141 Indian pharmaceutical firms during 2000-2001 to 2014-2015. Findings The study found the negligible impact of product patent regime on productivity. The technological change has played a positive role in the growth of productivity, whereas technical efficiency change depicts the judicious utilization of resources for improving performance. From the results, it is found that R&D intensive firms depict better stability in the TFP than the non-R&D firms. However, Granger causality between R&D and productivity found no relationship. Productivity is more directly affected by investment in fixed assets rather than in R&D, which focusses on incremental value additions in a largely branded/plain generic product market. In case of ownership, private foreign firms found to have registered progress in TFP while others have recorded marginal regress, which probably could be attributed to the superior marketing and management skills of the foreign firms, besides possessing proprietary technology. Both small and large firms have shown positive growth in the new regime as compared to the pre-patent regime. These small firms are able to compete with large firms because of their up-gradation of the technological base by improving access to better foreign technology. TFP growth for all the firms can be attributed to improvement in technology, and innovation in terms of high capital-output ratio. Further, the paper tried to identify the determinants of productivity from panel random effect regression, and it is found that export intensity, age and the new patent regime have negative and significant relationship with productivity, whereas other variables such as R&D, ownership, size and capital imports are insignificant. In the end, the results of sensitivity analysis have confirmed the validity of the selected variables. Practical implications The results suggest that Indian pharmaceutical firms need substantive improvement in TFP by improving managerial and scale efficiency. Indian pharmaceutical industry (IPI) needs to improve productivity across the network and drive cost excellence initiatives across the spend base through operational excellence and digital initiatives. The results of this paper can be applied in framing policies for future growth and improvement in the productivity of IPI. Originality/value The paper aims to make several new contributions to the existing literature. Most of the research papers only analysed TFP of the industry as a whole and detailed firm-wise analysis is needed to capture the true impact at a unit level. This study has analysed the impact of different categories such as ownership, R&D, size and product-wise, and determinants of productivity. The study has used a broader time period and larger panel data to predict the better picture.

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Section: Determinants Of Productivitysupporting

confidence: 78%

Section: Introductionmentioning

confidence: 99%

Is productivity of Indian pharmaceutical industry affected with the introduction of product patent act?

Mahajan

2020

IGDR

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“…The findings of this study reveal that learning capability acts as a major mediating mechanism between knowledge resources and innovation. This is also confirmed by Mahajan et al (2020) who stated that by increasing research and development activities, the efficiency scores and innovation potential of firms will increase. In addition, the sensing capability was found to have a mediating effect between knowledge resources and innovation.…”

Section: Discussionsupporting

confidence: 54%

“…It is indicated that, by optimum utilization of resources and adopting best managerial practices, considerable improvements in efficiency can be obtained and the probability of innovation will increase. Moreover, the competitiveness potential will be enhanced (Mahajan et al, 2020). Furthermore, because tourism organizations (in many aspects including health) faced greater uncertainty compared to other industries due to the Covid-19 pandemic, dynamic capabilities can provide strategic responses which are vital for the survival of this industry and also will ensure its sustainability in the future (Jiang et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Effect of knowledge resources on innovation and the mediating role of dynamic capabilities: case of medical tourism sector in Iran

Edgar

Kharazmi

Behzadi

et al. 2022

EJIM

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PurposeThis research is an empirical study that addresses whether knowledge resources impact on, or do not impact on, innovation development and if this impact is mediated by dynamic capabilities in the medical tourism sector in Mashhad city, Iran.Design/methodology/approachA quantitative research methodology was applied and questionnaires were used for data collection in this study. A total of 108 questionnaires were collected of which 102 questionnaires were valid. Data were analyzed using structural equation modelling technique.FindingsEmpirical evidence obtained from the study reveals that the dynamic capability of learning plays a significant role in transforming knowledge resources into innovation in the medical tourism sector. The mediating role of coordinating capability in the relationship between explicit and tacit knowledge and innovation is considerable and it influences human capital, as well. Sensing capability also exhibits some degree of a mediating role; however, integrating capability is not influential and its role in transforming explicit knowledge to innovation is rejected.Originality/valueMost studies on innovation in medical tourism focused on market and its typology, and neglected the role of knowledge resources and dynamic capabilities. The current study bridges this gap and thus contributes to the scientific literature.

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“…The same has been reported in other such studies too. [7] Also, digital and social media marketing have been proclaimed by most of the participants in our study to have positive effects on the company's growth. [6,8] Researchers from different parts of the world have recorded the same.…”

Section: Discussionmentioning

confidence: 97%

Sales Professionals’ Perspective on Digital Marketing in Indian Pharmaceutical Industry

Kumar

Londhe

2019

AJMS

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Indian pharmaceutical industry is one amongst the leading players of pharmaceutical industry around the world. In present digital times, every aspect of the society has been digitalized. There are major transitions noted in pharmaceutical industry as well. Digital technology, has changed the working methods and emerged, as a cost effective means, with impressive target reach around the world. Yet, this platform, is not being utilized to its complete potential, due to the lack of awareness, acceptability and the deficient training of the working personnel. The marketing and sales professionals had a major impact of the digitalization on their working methods. It has changed the traditional marketing methods of industry, resulting in the urgent need of up-gradation of the skills of sales professionals. Hence, the views, trainings, awareness and acceptability of sales professionals regarding the digital technology is essential and must be kept into consideration for success of the industry. This is an indispensable component for any pharmaceutical company to attain growth and stand at par with the other pharmaceutical giants around the world. In this study, data of 303 sales professionals was collected and analyzed, recording their perspectives on digital marketing. We found that these professionals were aware and had good acceptability for the same. Most commonly used tools were website promotions, social media advertising, awareness campaigns, creation and management of subject related blogs. These professionals used it extensively on a day-to-day basis, for the maximal benefit of the company with providing the comfort of digitalization to their customers and other users.

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Domestic market competitiveness of Indian drug and pharmaceutical industry

Cited by 9 publications

References 54 publications

Is productivity of Indian pharmaceutical industry affected with the introduction of product patent act?

Is productivity of Indian pharmaceutical industry affected with the introduction of product patent act?

Effect of knowledge resources on innovation and the mediating role of dynamic capabilities: case of medical tourism sector in Iran

Sales Professionals’ Perspective on Digital Marketing in Indian Pharmaceutical Industry

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