Innovative and industrial performance in pharmaceutical R&D, a management control perspective

In this paper management control is related to innovative and industrial performance in 14 non-biotech pharmaceutical companies. The study consisted of questionnaires, sent to the heads of the different research departments of European research laboratories of leading pharmaceutical companies, combined with structured interviews with the R&D Directors of the companies. Given the limitations of a cross-sectional design and a relatively small study population, the following conclusions are tentatively drawn. Firstly, clear contrast has been found in the effectiveness of personnel, resources and external control, dividing the more from the less than average performers. Especially the strength of personnel control proves to be an important dividing parameter. Secondly, clear contrast has been found in research process control between discovery and development. In the highly uncertain environment of discovery, intensive 'in house' communication proves to be an important dividing parameter between less and more than average performers. However, in the more certain environment of development, the level of planning and the communication with marketing and production in the project team meetings is an important parameter dividing the more from the less than average performers.