Returns to Scale in Research in the Ethical Pharmaceutical Industry: Some Further Empirical Evidence

1973 ◽  
Vol 22 (2) ◽  
pp. 81 ◽  
Author(s):  
Alan S. Angilley
Keyword(s):  
Pharmaceutical Industry ◽  
Empirical Evidence ◽  
Returns To Scale

Innovative productivity and returns to scale in the pharmaceutical industry

1993 ◽  
Vol 14 (8) ◽  
pp. 593-605 ◽  
Author(s):  
Samuel B. Graves ◽  
Nan S. Langowitz
Keyword(s):  
Pharmaceutical Industry ◽  
Returns To Scale

Measuring the effectiveness of R & D activities

2016 ◽  
Vol 54 (2) ◽  
pp. 321-362 ◽  
Author(s):  
Eva Mulero Mendigorri ◽  
Teresa García Valderrama ◽  
Vanesa Rodríguez Cornejo
Keyword(s):  
Pharmaceutical Industry ◽  
Empirical Evidence ◽  
Balanced Scorecard ◽  
Success Factors ◽  
Corporate Strategy ◽  
Reliability And Validity ◽  
Positive Influence ◽  
Measurement Scale ◽  
Content Type ◽  
Significant Relationships

Purpose – The purpose of this paper is to validate empirically a measurement scale of the effectiveness of R & D activities, starting from previous work in which the content was validated. Design/methodology/approach – Following psychometric standards the authors have addressed the analysis phases of construct dimensionality, reliability and validity (convergent, discriminant and nomologic), and the scale criteria are shown to be valid in their three temporal manifestations (retrospective, concurrent and predictive). The empirical evidence was drawn from a sample of 85 companies belonging to the Spanish pharmaceutical sector. Findings – Globally the authors provide evidence of reliability, validity of construct and validity of criterion in their diverse manifestations, for the scale designed and validated, on effectiveness in R & D. The authors divide the results into two groups: one for content of the scale and the other for relationships of the scale with other variables. With respect to the first, it is notable that, although in general the variables analyzed coincide with the previous broad and multidisciplinary theory on the success factors of R & D activities, what the authors provide is empirical evidence of the most important factors and variables for effectiveness in R & D; the authors emphasize that the results of the sample analyzed indicate that the most important factor is the close integration of the R & D activities with the corporate strategy, followed by the proper planning of these activities, and the achievement of financial results for the company. With respect to the relationship of the scale with other variables, the authors have found positive and significant relationships between the effectiveness in R & D and the following financial variables: net turnover and earnings after taxes. The authors have also found positive and significant relationships between different characteristics of the company and the achievement of success in R & D activities. Thus, being a company of larger size, the existence of an R & D department, the existence of specific incentive systems for the R & D personnel, the adoption of new management techniques in the R & D department, and the patents policy of the company are all factors that have a positive influence. Research limitations/implications – There are three main limitations of the study: the size of the sample; the decision to use a very particular highly innovatory sector, the pharmaceutical industry; and conducting the study in only one specific country, Spain. The results should be interpreted taking into account these limitations. Another limitation is the absence of previously validated scales. This meant that the authors were unable to do any comparative analyses. Practical implications – The authors have contributed by summarizing and testing the existing theories on the factors of success in R & D. This should give R & D managers a more comprehensive and useful picture of the variables that have been considered more important, and should enable them to choose from among the range of variables proposed those that may be considered most relevant for inclusion in their own balanced scorecard. More generally, the results should help them in the management of their activity. For researchers the authors make available an already validated scale with which to work in various different samples and settings. Originality/value – The originality of the work resides in two aspects. First, a very wide set of variables proposed in the literature is analyzed, with the object of establishing the relationships and the ranking of these variables, which would not be clear if the variables were analyzed in isolation. Second, there is originality in the methodology employed for measuring the result of activities with a high level of uncertainty and risk, specifically R & D activities in the highly innovative companies of the pharmaceutical industry. It is original because, to date, the scale has only been validated theoretically – there is no work in the literature validating it empirically.

Internationalization of Chinese Pharmaceutical Firms-Strategies and Drivers

2016 ◽  
pp. 150-168
Author(s):  
Zichao Gao ◽  
Jian Li ◽  
Hao Hu ◽  
Yitao Wang
Keyword(s):  
Complex System ◽  
Pharmaceutical Industry ◽  
Empirical Evidence ◽  
Value Chain ◽  
Text Analytics ◽  
Global Integration ◽  
Key Factors ◽  
Pharmaceutical Firms ◽  
Internationalization Strategies ◽  
Corporate Internationalization

Investigating how pharmaceutical firms from emerging economies internationalize themselves to meet the knowledge- and investment-intensive challenges of pharmaceutical industry has become an inviting topic for both academia and industry. This paper explores the internationalization strategies and driving factors of Chinese pharmaceutical firms. Through applying text analytics, four internationalization patterns of Chinese pharmaceutical firms are identified, namely, (1) market seeking by the state-owned; (2) opportunity exploring by the emerging-private; (3) culture penetration by TCM firms; and (4) global integration by CROs. It shows that the internationalization of Chinese pharmaceutical firms is driven by three key factors: firm ownership, business scope and value chain positioning. This study attempts not only to provide empirical evidence of internationalization of Chinese pharmaceutical firms, but also to contribute to the field of study on corporate internationalization in the complex-system sector.

scholarly journals Risk-adjusted efficiency and bank size in a developing economy: an analysis of Vietnamese banks

2020 ◽  
Vol 47 (2) ◽  
pp. 386-404 ◽  
Author(s):  
Minh Le ◽  
Viet-Ngu Hoang ◽  
Clevo Wilson ◽  
Thanh Ngo
Keyword(s):  
Credit Risk ◽  
Empirical Evidence ◽  
Developing Economies ◽  
Returns To Scale ◽  
Banking System ◽  
Developed Countries ◽  
Content Type ◽  
Empirical Results ◽  
Increased Risk ◽  
Small Banks

PurposeThere is ample empirical evidence to show that larger banks are more efficient than smaller banks in developed countries. However, there is very little empirical evidence to show that in small developing economies, such as Vietnam, bank size is associated with increased risk, especially credit risk. This paper aim to provide empirical evidence to fill in this gap. This paper employs a slack-based directional distance function using the intermediation approach in measuring the inefficiency of banks in Vietnam during the period 2006–2015. Non-performing loans are used as an undesirable output to capture credit risk. The results show that small banks are more efficient than large banks at the mean level and across the entire distributions of inefficiency of the two groups. Input waste, output shortage and risk surplus of big banks are nearly three times higher than those of small banks. The results are robust under constant and variable returns to scale for production technologies. The study’s empirical results contribute to the ongoing debate on the merits of enlarging bank size in a small transitional economy and suggest that policy makers should pay attention to the risk and inefficiency of large banks to enhance the performance of Vietnam's banking system as a whole.Design/methodology/approachThis paper uses the non-radial slack-based directional technology distance function developed by Färe and Grosskopf (2010) to estimate the efficiency of banks using the data envelopment analysis technique. Data for 44 commercial banks are used.FindingsThe empirical results of the paper contribute to the ongoing debate on the merits of enlarging bank size in a small transitional economy and suggest that policy makers should pay attention to the risk and inefficiency of large banks to improve the performance of Vietnam's banking system as a whole.Originality/valueThis paper extends the extant literature by examining whether efficiency is associated with size in a typical transitional developing economy. The classic Cournot model, the structure-conduct-performance and the efficiency structure hypotheses state that larger banks are more efficient than smaller banks (Bikker and Bos, 2008). Empirical studies of Berger (2003), Mester (2005), Wheelock and Wilson (2012) lend support to the statement in developed countries. However, not much empirical literature focuses on small developing economies such as Vietnam to show that bank size is associated with increased risk, especially credit risk. The study’s empirical results show that size enlargement is not positively associated with risk-adjusted efficiency. Input waste, output shortage and risk surplus of big banks are nearly three times higher than those of small banks. The results are robust under constant and variable returns to scale for production technologies.

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