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Effects of corporate social responsibility on pharmaceutical multinational enterprises performance: Research and development and business efficiency perspectives

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  • Fang Chen Kao
  • Minh‐Hieu Le

Abstract

This study employs an integrated two‐stage network data envelopment analysis, multiplicative efficiency aggregation in a second‐order cone programming approach, to assess efficiency scores of 41 pharmaceutical multinational enterprises (PMNEs). We also suggest a strategy for efficiently forecasting each PMNE's future efficiency score using a trend analysis technique. In particular, this study investigates how the three dimensions of corporate social responsibility (CSR) affect R&D efficiency and business efficiency. Results indicate that the governance pillar (social pillar) has a positive (negative) effect on the business efficiency of PMNEs. The findings give PMNE executives additional references to consider when deciding on CSR practices.

Suggested Citation

  • Fang Chen Kao & Minh‐Hieu Le, 2022. "Effects of corporate social responsibility on pharmaceutical multinational enterprises performance: Research and development and business efficiency perspectives," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3419-3434, December.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:8:p:3419-3434
    DOI: 10.1002/mde.3605
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