Empirical Research Of The Impacts Of Domesticlisted Pharmaceutical Companies’ Financial Performance By Supply Chain Integration

Along with gradually development of economic globalization trend, progress ofinformation technology and innovation of management theories, the mode of marketcompetition has also being changed significantly. As the major competition player in themarket, firms must change with times, exploration and innovation internally andexternally. Supply chain management will be the major player in the market competitioninstead of firms. Through the resource integration and closely collaborations with theupstream and downstream firms, supply chain integration will be the important facilitatorto promote the firm’s financial performance and competition in the market. This article isto research the relationships among the supply chain integration, firm’s operationperformance and financial performance and prove whether the supply chain integrationwill promote the firm’s financial performances, meanwhile conducting descriptivestatistics analysis, relativity analysis and linearity aggression analysis to research therelationships among these variables by utilizing samples collected from143domesticpharmaceutical firms. This research proves that it will decrease the firm’s period expense,increase the turnover and utilization rate of assets by improving its supply chainintegration. It is well to balance the mutual benefits and ensure a stable developmentamong firms by surrendering its part of the profits to the upstream&downstream firms.Based on the conclusion of this article, pharmaceutical firms should improve their supplychain integration ability, integrate and optimize the supply chain procedures to eliminatethe non-value-added processes, utilize the resources well and enhance the deeplycollaborations among firms, and control its operation and management cost well. Finally,it improves the firm’s financial performances and the global market competition of Chinapharmaceutical industry as well.