Inventory and financial performance in the pharmaceutical industry: what transpired over the last two decades?

IF 7.1 2区管理学 Q1 MANAGEMENT

International Journal of Operations & Production Management Pub Date : 2023-12-12 DOI:10.1108/ijopm-07-2022-0461

Jeong Hoon Choi, Sangdo Choi, Nallan C. Suresh

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引用次数: 0

Abstract

Purpose

The objective of this study is to explore the structural attributes of the pharmaceutical industry before the onset of the COVID-19 pandemic by examining the relationship between inventory and firm performance and developing a taxonomy of pharmaceutical firms based on the earns-turns matrix.

Design/methodology/approach

This study examines the inventory–firm performance linkage, considering both total inventory and its discrete inventory components in pharmaceutical firms. In addition, this research develops a new taxonomy of pharmaceutical firms based on the earns-turns matrix. A large panel dataset of firms in the US pharmaceutical industry was collected for the period 2000–2019.

Findings

The results reveal that strategic groups identified based on this taxonomy show different levels of profitability and inventory turns in the earns-turns matrix. Most pharmaceutical firms moved from the low-right to the top-left section in the earns-turns matrix, indicating that these firms have generally pursued profitability rather than effective inventory management.

Research limitations/implications

This study explores the structural attributes of the pharmaceutical industry using the earns-turns matrix. This two-dimensional analysis may not, however, capture the full complexity of inventory–firm performance dynamics.

Practical implications

The mapping of strategic groups on the earns-turns matrix provides a useful tool for visual representations of the dynamics of strategic groups in terms of financial performance and inventory management performance. Practitioners can use the earns-turns matrix to benchmark their firm's position against their competitors.

Originality/value

This study broadens the scope of operations management research by introducing the earns-turns matrix as an empirical validation tool for operational and strategic management theories. This study emphasizes the effectiveness of the earns-turns matrix in analyzing strategic groups of pharmaceutical firms.

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制药业的库存和财务业绩：过去二十年发生了什么？

本研究的目的是通过考察库存与企业绩效之间的关系，并根据收益-周转矩阵对制药企业进行分类，从而探索 COVID-19 大流行之前制药行业的结构属性。此外，本研究还根据收益-周转矩阵对制药企业进行了新的分类。研究结果表明，根据该分类法确定的战略集团在收益-周转矩阵中表现出不同的盈利能力和库存周转水平。大多数制药公司在收益-周转矩阵中从右下方移动到左上方，表明这些公司普遍追求盈利能力，而不是有效的库存管理。然而，这种二维分析可能无法捕捉到库存-企业绩效动态的全部复杂性。实践意义战略集团在收益-周转矩阵上的映射提供了一种有用的工具，可直观地反映战略集团在财务绩效和库存管理绩效方面的动态。实践者可以利用收益-周转矩阵来衡量其公司在竞争对手中的地位。原创性/价值本研究通过引入收益-周转矩阵作为运营和战略管理理论的实证验证工具，拓宽了运营管理研究的范围。本研究强调了收益-回报矩阵在分析制药公司战略集团方面的有效性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Operations & Production Management MANAGEMENT-

CiteScore

13.30

自引率

17.20%

发文量

期刊介绍： The mission of the International Journal of Operations & Production Management (IJOPM) is to publish cutting-edge, innovative research with the potential to significantly advance the field of Operations and Supply Chain Management, both in theory and practice. Drawing on experiences from manufacturing and service sectors, in both private and public contexts, the journal has earned widespread respect in this complex and increasingly vital area of business management. Methodologically, IJOPM encompasses a broad spectrum of empirically-based inquiry using suitable research frameworks, as long as they offer generic insights of substantial value to operations and supply chain management. While the journal does not categorically exclude specific empirical methodologies, it does not accept purely mathematical modeling pieces. Regardless of the chosen mode of inquiry or methods employed, the key criteria are appropriateness of methodology, clarity in the study's execution, and rigor in the application of methods. It's important to note that any contribution should explicitly contribute to theory. The journal actively encourages the use of mixed methods where appropriate and valuable for generating research insights.