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Make or Buy Decision Criteria in Pakistan Pharmaceutical Industry; a case of Albert Pharmaceutical Industry

Year 2021, , 107 - 127, 13.02.2022
https://doi.org/10.55065/intraders.1037110

Abstract

The goal of this research is to look into how Pakistan Pharmaceutical industries took make o buy decision. The “Make or buy” decision is an important choice in an organization. This decision can affect costs, competencies, and capability in the organization. The data is collected from specialists of Albert manufacturing company in Pakistan. The questionnaire has been distributed to 7 respondents in decision-making people of the Albert Pharmaceutical industry. The response told that the Core part which is medicines is made. Albert Pharmaceutical Industry mostly follows Making Criteria for core activities because it is a government requirement that all documents related to the manufacture and testing of medicines be submitted to Pakistan's Drug Regulatory Authority (DRAP). Because these are life-saving drugs, the government must take all precautionary measures. In this study, we check that making criteria is beneficial for the pharmaceutical industry we see the relationship of Resource-Based View, cost reduction, Environment Uncertainty, and Financial benefits with making Decision Criteria. The results of our study show that Resource-Based View, cost reduction, and financial benefits have a highly significant relationship with Making Decision Criteria. Whereas environmental uncertainty has not any relationship with making decision criteria. We also implement the regression analysis to see which factor impacts the most making decision Criteria the result of the analysis shows that Resource-Based View. Also, participant specifies that they prefer manufacturing because they have most of the requisite resources and machinery along with human resources, organizational resources, and financial resources.

References

  • Arya, A., Mittendorf, B., & Sappington, D. E. (2008). The make-or-buy decision in the presence of a rival: strategic outsourcing to a common supplier. Management Science, 54(10), 1747-1758.
  • Akeem, L. B. (2017). Effect of cost control and cost reduction techniques in organizational performance. International business and management, 14(3), 19-26.
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
  • Bartel, A. P., Lach, S., & Sicherman, N. (2014). Technological change and the make-or-buy decision. The Journal of Law, Economics, & Organization, 30(1), 165-192.
  • Cánez, L. E., Platts, K. W., & Probert, D. R. (2000). Developing a framework for make‐or‐buy decisions. International Journal of Operations & Production Management.
  • Davis, E. W. (1992). Global outsourcing: have US managers thrown the baby out with the bathwater? Business Horizons, 35(4), 58-66.
  • Hsiao, H., Kemp, R., van der Vorst, J. G., & Omta, S. (2009). Make-or-buy decisions and levels of logistics outsourcing: an empirical analysis in the food manufacturing industry. Journal on Chain and Network Science, 9(2), 105-118.
  • Hingorani, N. L., & Ramanathan, A. R. (1973). Management Accounting, New Delhi: S. Chand & Sons.
  • Hampton, J. J. (1986). Corporate Finance Using Electronic Spreadsheets, Prentice-Hall.
  • Hafeez, A., & Andersen, O. (2014). Factors influencing accounting outsourcing practices among SMEs in Pakistan context: Transaction cost economics (TCE) and resource-based views (RBV) prospective.
  • Joseph, K., & Kalwani, M. U. (1995). The impact of environmental uncertainty on the design of salesforce compensation plans. Marketing Letters, 6(3), 183-197.
  • Mohamed, Z. A., Abdullah, H. H., Othman, R., & Uli, J. (2009). Make or buy strategy and origin of sourcing materials and their relationship with firm performance. International Review of Business Research Papers, 5(3), 142-155.
  • McIvor, R. T., Humphreys, P. K., & McAleer, W. E. (1997). A strategic model for the formulation of an effective makes or buy decision. Management Decision.
  • McIvor, R. (2000). A practical framework for understanding the outsourcing process. Supply Chain Management: an international journal.
  • Moschuris, S. J. (2015). Decision-making criteria in tactical make-or-buy issues: an empirical analysis. EuroMed Journal of Business.
  • Neves, L. W. D. A., Hamacher, S., & Scavarda, L. F. (2014). Outsourcing from the perspectives of TCE and RBV: A multiple case study. Production, 24(3), 687-699.
  • Platts, K. W., Probert, D. R., & Canez, L. (2002). Make vs. buy decisions: A process incorporating multi-attribute decision-making. International journal of production economics, 77(3), 247-257.
  • Padillo, J. M., & Diaby, M. (1999). A multiple-criteria decision methodology for the make-or-buy problem. International Journal of Production Research, 37(14), 3203-3229.
  • Premkumar, G., Ramamurthy, K., & Saunders, C. S. (2005). Information processing view of organizations: an exploratory examination of fit in the context of inter-organizational relationships. Journal of Management Information Systems, 22(1), 257-294.
  • Pandey, I. M. (1992). Venture capital and entrepreneurial development: The Indian experience.s
  • Rogers, B. (2009). An exploratory study of the make-or-buy decisions in pharmaceutical sales. Journal of Medical Marketing, 9(1), 11-20.
  • Sun, S. Y., Hsu, M. H., & Hwang, W. J. (2009). The impact of alignment between supply chain strategy and environmental uncertainty on SCM performance. Supply Chain Management: An International Journal.
  • Tayles, M., & Drury, C. (2001). Moving from make/buy to strategic sourcing: the outsourcing decision process. Long-range planning, 34(5), 605-622.

Pakistan İlaç Endüstrisinde Karar Verme veya Satın Alma Kriterleri;Albert İlaç Endüstrisi Vaka Çalışması

Year 2021, , 107 - 127, 13.02.2022
https://doi.org/10.55065/intraders.1037110

Abstract

Bu araştırmanın amacı, Pakistan İlaç endüstrilerinin satın alma kararını nasıl aldığını incelemektir. “Yap ya da satın al” kararı, bir organizasyonda önemli bir seçimdir. Bu karar, kuruluştaki maliyetleri, yetkinlikleri ve yeteneği etkileyebilir. Veriler, Pakistan'daki Albert imalat şirketinin uzmanlarından toplanmıştır. Anket, Albert İlaç endüstrisinin karar verici insanlarından 7 katılımcıya dağıtılmıştır. Cevapta, ilaç olan Çekirdek kısmın yapıldığı söylendi. Albert Pharmaceutical Industry, ilaçların üretimi ve test edilmesiyle ilgili tüm belgelerin Pakistan İlaç Düzenleme Kurumu'na (DRAP) sunulması bir hükümet gerekliliği olduğundan, çoğunlukla temel faaliyetler için Yapım Kriterleri'ni takip eder. Bunlar hayat kurtaran ilaçlar olduğu için hükümetin tüm ihtiyati tedbirleri alması gerekiyor. Bu çalışmada, ilaç endüstrisi için kriter oluşturmanın faydalı olup olmadığını kontrol ediyoruz, Kaynak Bazlı Görünüm, maliyet azaltma, Çevre Belirsizliği ve Finansal faydaların Karar Kriterleri ile ilişkisini görüyoruz. Çalışmamızın sonuçları, Kaynak Bazlı Görünüm, maliyet azaltma ve finansal faydaların Karar Verme Kriterleri ile oldukça önemli bir ilişkisi olduğunu göstermektedir. Çevresel belirsizliğin ise karar verme kriterleri ile herhangi bir ilişkisi yoktur. Regresyon analizini de en çok hangi faktörün etkilediğini görmek için uyguluyoruz Kriterler analiz sonucu Kaynak Tabanlı Görünüm olduğunu gösteriyor. Ayrıca katılımcı, insan kaynakları, organizasyonel kaynaklar ve finansal kaynaklar ile birlikte gerekli kaynak ve makinelerin çoğuna sahip oldukları için imalatı tercih ettiklerini belirtmektedir.

References

  • Arya, A., Mittendorf, B., & Sappington, D. E. (2008). The make-or-buy decision in the presence of a rival: strategic outsourcing to a common supplier. Management Science, 54(10), 1747-1758.
  • Akeem, L. B. (2017). Effect of cost control and cost reduction techniques in organizational performance. International business and management, 14(3), 19-26.
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
  • Bartel, A. P., Lach, S., & Sicherman, N. (2014). Technological change and the make-or-buy decision. The Journal of Law, Economics, & Organization, 30(1), 165-192.
  • Cánez, L. E., Platts, K. W., & Probert, D. R. (2000). Developing a framework for make‐or‐buy decisions. International Journal of Operations & Production Management.
  • Davis, E. W. (1992). Global outsourcing: have US managers thrown the baby out with the bathwater? Business Horizons, 35(4), 58-66.
  • Hsiao, H., Kemp, R., van der Vorst, J. G., & Omta, S. (2009). Make-or-buy decisions and levels of logistics outsourcing: an empirical analysis in the food manufacturing industry. Journal on Chain and Network Science, 9(2), 105-118.
  • Hingorani, N. L., & Ramanathan, A. R. (1973). Management Accounting, New Delhi: S. Chand & Sons.
  • Hampton, J. J. (1986). Corporate Finance Using Electronic Spreadsheets, Prentice-Hall.
  • Hafeez, A., & Andersen, O. (2014). Factors influencing accounting outsourcing practices among SMEs in Pakistan context: Transaction cost economics (TCE) and resource-based views (RBV) prospective.
  • Joseph, K., & Kalwani, M. U. (1995). The impact of environmental uncertainty on the design of salesforce compensation plans. Marketing Letters, 6(3), 183-197.
  • Mohamed, Z. A., Abdullah, H. H., Othman, R., & Uli, J. (2009). Make or buy strategy and origin of sourcing materials and their relationship with firm performance. International Review of Business Research Papers, 5(3), 142-155.
  • McIvor, R. T., Humphreys, P. K., & McAleer, W. E. (1997). A strategic model for the formulation of an effective makes or buy decision. Management Decision.
  • McIvor, R. (2000). A practical framework for understanding the outsourcing process. Supply Chain Management: an international journal.
  • Moschuris, S. J. (2015). Decision-making criteria in tactical make-or-buy issues: an empirical analysis. EuroMed Journal of Business.
  • Neves, L. W. D. A., Hamacher, S., & Scavarda, L. F. (2014). Outsourcing from the perspectives of TCE and RBV: A multiple case study. Production, 24(3), 687-699.
  • Platts, K. W., Probert, D. R., & Canez, L. (2002). Make vs. buy decisions: A process incorporating multi-attribute decision-making. International journal of production economics, 77(3), 247-257.
  • Padillo, J. M., & Diaby, M. (1999). A multiple-criteria decision methodology for the make-or-buy problem. International Journal of Production Research, 37(14), 3203-3229.
  • Premkumar, G., Ramamurthy, K., & Saunders, C. S. (2005). Information processing view of organizations: an exploratory examination of fit in the context of inter-organizational relationships. Journal of Management Information Systems, 22(1), 257-294.
  • Pandey, I. M. (1992). Venture capital and entrepreneurial development: The Indian experience.s
  • Rogers, B. (2009). An exploratory study of the make-or-buy decisions in pharmaceutical sales. Journal of Medical Marketing, 9(1), 11-20.
  • Sun, S. Y., Hsu, M. H., & Hwang, W. J. (2009). The impact of alignment between supply chain strategy and environmental uncertainty on SCM performance. Supply Chain Management: An International Journal.
  • Tayles, M., & Drury, C. (2001). Moving from make/buy to strategic sourcing: the outsourcing decision process. Long-range planning, 34(5), 605-622.
There are 23 citations in total.

Details

Primary Language English
Subjects Business Systems in Context
Journal Section Articles
Authors

Mahnoor Fatima 0000-0002-8454-9230

Publication Date February 13, 2022
Submission Date December 15, 2021
Acceptance Date February 1, 2022
Published in Issue Year 2021

Cite

APA Fatima, M. (2022). Make or Buy Decision Criteria in Pakistan Pharmaceutical Industry; a case of Albert Pharmaceutical Industry. InTraders International Trade Academic Journal, 4(2), 107-127. https://doi.org/10.55065/intraders.1037110