Innovation Dynamic Performance in the Pharmaceutical Industry: A Study on Establishing a Generic Strategic Planning
Abstract
The pharmaceutical industry plays a vital role in shaping public health outcomes, promoting well-being & enhancing safety indicators within a society. The pharmaceutical sector is considered a knowledge-based industry where the development of companies in a complex environment in the domain of innovative research, investment, and government regulation to maintain and survive is a challenging task. This study investigates the critical factors that influence innovation performance in establishing a generic plan within the pharmaceutical industry. Focusing on the core dimensions such as Research and Development, Product and Process Innovation, Organizational Size, Dynamic capabilities, and Knowledge Management. The research aims to explore how these variables contribute to enhancing innovation capability and competitive advantage in the pharmaceutical sector. This study recognizes the critical importance of innovation for competitiveness and public health in developing countries. The research further integrates perspectives from pharmaceutical experts to explore how internal organizational strengths & contribute to innovative outcomes. A quantitative methodology was employed using a structured Likert-scale survey distributed to 63 professionals, and data were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS software 4.0. According to the results, dynamic capabilities have the confirmed ability to integrate, build, and reconfigure internal competencies significantly and positively influence innovation performance. In contrast, knowledge management & other core elements theoretically illustrate an insignificant statistical relationship with innovation performance. Reliability analysis showed strong internal consistency across all constructs with Cronbach's alpha values exceeding 0.8. Discriminant validity was confirmed through the Fornell-Larcker criterion, showing a clear construct in a distinct manner. Theoretically, the study enhances literature on innovation drivers by confirming the dominant role of dynamic capabilities. Practically, it offers actionable insights for pharmaceutical firms in resource-barrier environments to prioritize capability-building initiatives over knowledge management systems when aiming to boost innovation performance. It is essential to adopt advanced technology & research for generic drug production, this strategy will ensure patient access without dependency on costly imports & external supply constraints that ultimately overcome the health disparities, socioeconomic factors, political barriers, and global supply restrictions to win the global health war.
Keywords: Innovation; Pharmaceutical; Strategic Planning; Performance
