AN EFFICIENT LOGISTICS BOOST FIRM PERFORMANCE IN PHARMACEUTICAL INDUSTRY OF KARACHI

Abstract

Purpose: Efficient logistics is critical to the success offirms engaging in pharmaceutical products. This research empirically investigates the impact of the dimension of logistics operations on the underlying theories on firm performance in the pharmaceutical industry of Karachi. Based Resource-Based View (RBV) and Data envelopment analysis (DEA) perspective, the main purpose ofthis study is to investigate empirically the relationship between the core dimension oflogistics operations and firm performance. Methodology & Design This research examines the relationship between a firm's warehousing capability, transportation, IT capability, and performance. This is a research that the data are collected through a survey ofworking as a logistics/SC manager and staffin the pharmaceutical industry ofKarachi. This research used a cross-sectional design and gathered quantitative data, the total number of 132 pharmaceutical companies operative in Karachi registered with the DRAP, (2019). This study selected the Pearson correlation and the multiple regression analysis (MRA) technique to test the logistics operations have a significant positive impact on firm performance. Findings The research findings indicated that logistics operations positively influence firm performance in which Information technology capability was found to be the most important logistics operation in the pharmaceutical industry. Moreover, the relationship between warehousing capability and found positive and insignificant with firm performance. transportation was There is also a discussion ofthe theoretical and managerial implications for the pharmaceutical industry of Karachi. The study has bridged the literature gaps in such a way that it offers empirical evidence on the relationship between logistics operation and firm performance using a Karachi sample. Limitations The main limitations faced in the present study is the constraint of resources and time. Additionally, the sample size ofthe study is small (only 100 samples) because of using probabilistic sampling, facing difficulty to access the data from manager secrecy. non Recommendations To foster the firm performance through efficient logistics, the logistics operation should therefore focus on providing a supportive platform for the pharmaceutical industry to improve their capabilities, which would ultimately lead to better performance and the sustainability of the logistics operation in Karachi.