Critical Success Factors for Pharmaceutical Firms: The Case of Pakistan

Abstract

Organizational performance is essential for the growth, sustainability, and competitive edge of a business entity. The pharmaceutical industry in Pakistan has become highly uncompetitive due to excess supply, lack of administrative control, and failure to acquire new drugs related knowledge. Thus, this study has focused on the pharmaceutical sector of Pakistan. The authors of the study have collected the data through a self-administered questionnaire distributed in Lahore, Multan, and Islamabad. The study has used Smart PLS version 3.3 for statistical analysis. The study has tested nine hypotheses, and found support for all of them. The study found that knowledge management, organizational control, and organizational performance significantly affect competitive advantage. The results also suggest that organizational performance mediates (i) knowledge management and competitive advantage, (ii) organizational control and competitive advantage, and (iii) organizational image and competitive advantage. Based on the empirical results, the study has proposed several implications for policymakers and practitioners.

Keywords

• organizational performance
• competitive advantage
• knowledge management
• organizational control
• pharmaceutical industry