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Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs

Author

Listed:
  • José Niño-Amézquita

    (Regional Center for Productivity and Innovation of Boyaca)

  • Fedor Legotin

    (Ural State University of Economics)

  • Oleg Barbakov

    (Tyumen Industrial University)

Abstract

Our paper examines one of the key aspects of the organizational economics – the factors of economic success and sustainability of the pharmaceutical small and medium enterprises (SMEs) in India. Indian pharmaceutical industry is known for its high fragmentation and weak generic based R&D initiatives. The study uses inflation adjusted cross section data for 20 SMEs in the year 2013-2014 and applies OLS regression model with robust standard errors. It has found that exports, R&D expenditure, and previous year profits have exercised positive impact on SMEs' growth. The negative, yet statistically significant influence of advertising and marketing expenditure highlights the need to rethink about strategic management policies of SMEs. Our results suggest that SMEs are required to pay more attention towards the global market expansion and value creation through R&D investment, as a part of their long-term growth and survival strategy.

Suggested Citation

  • José Niño-Amézquita & Fedor Legotin & Oleg Barbakov, 2017. "Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs," Post-Print hal-01735846, HAL.
    • Handle: RePEc:hal:journl:hal-01735846
    DOI: 10.9770/jesi.2017.5.1(13)
    Note: View the original document on HAL open archive server: https://hal.science/hal-01735846
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    References listed on IDEAS

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    Cited by:

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    2. György Kovács & Béla Illés, 2019. "Development of an Optimization Method and Software for Optimizing Global Supply Chains for Increased Efficiency, Competitiveness, and Sustainability," Sustainability, MDPI, vol. 11(6), pages 1-28, March.
    3. Chih-Hung Hsu & Ming-Ge Li & Ting-Yi Zhang & An-Yuan Chang & Shu-Zhen Shangguan & Wan-Ling Liu, 2022. "Deploying Big Data Enablers to Strengthen Supply Chain Resilience to Mitigate Sustainable Risks Based on Integrated HOQ-MCDM Framework," Mathematics, MDPI, vol. 10(8), pages 1-35, April.
    4. Sebastian Kot, 2018. "Sustainable Supply Chain Management in Small and Medium Enterprises," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    5. Krishnendu Saha & Matt Yarnall & Stefania Paladini, 2024. "Sustainable practices in the animal health industry: A stakeholder‐based view," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3356-3382, May.
    6. Pashkevych Maryna & Kharchenko Maryna & Shishkova Nataliia, 2018. "Oval-sustainability in Entrepreneurship," Open Economics, De Gruyter, vol. 1(1), pages 142-153, December.

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    Keywords

    economic success; sustainability; pharmaceutical industry; economic growth; R&D;
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