Exploring the role of big data analytics and dynamic capabilities in ESG programs within pharmaceuticals

Abstract

Achieving the United Nations’ Sustainable Development Goals (SDGs) requires environmental, social, and governance (ESG) programs in the pharmaceutical industry. Using the Millennium Development Goals, the 2030 agenda aims to transform European Union companies toward sustainability. In pharmaceuticals, in particular, ESG programs come with complexities such as employee skills, corporate goals, and management expectations. Managing these programs effectively requires advanced technologies such as big data analytics (BDA) and dynamic capabilities (DC). In this study, DC theory is used to develop an architecture for managing ESG criteria, focusing on provenance, traceability, and availability. BDA’s role in ESG programs is explored, along with its use cases and benefits, and how DC drives success in ESG implementation. The study examined five pharmaceutical companies in Germany, Portugal, and Switzerland, all consulting the same firm for BDA systems, to identify the characteristics of effective BDA implementation. The research explores how BDA and DC jointly enhance ESG efforts, the essential skills needed, and how DC aids in real-time decision-making in BDA projects aligned with ESG standards. It highlights the BDA system’s accuracy and effectiveness in managing ESG programs, with DC as a pivotal facilitator. Findings reveal BDA’s value in operational efficiency and aligning business models with ESG goals, underscoring the need for diverse skills in BDA implementation and DC’s importance in integrating various managerial capacities into effective strategies. The study promotes a dynamic, data-driven approach in the pharmaceutical industry for managing complex ESG initiatives. It stresses continuous learning, adaptation, and integrating technological advances with ethical business practices. The research concludes by emphasizing BDA and DC’s vital roles in advocating ethical, socially responsible, and environmentally sustainable practices in the pharmaceutical sector, marrying technology with ethical business strategies.