Research On The Operational Efficiency And Influence Factors Of Pharmaceutical Manufacturing Enterprises

Pharmaceutical manufacturing industry is an important part of our national economy, which is related to people’s livelihood. With the increasing aging population problems, the improvement of people’s health awareness and the expansion of the spectrum of diseases, the size of China’s pharmaceutical market continues to expand, which means the pharmaceutical manufacturing enterprises have very good opportunities. However, the ensuing competition is more intense. Broad prospect of the pharmaceutical market has attracted many international pharmaceutical manufacturing companies, leading to China’s pharmaceutical manufacturing enterprises facing great challenges. Operational efficiency is an important manifestation of competitiveness. Therefore, the research on the operational efficiency and influence factors of pharmaceutical manufacturing companies has become an important topic to be studied.Domestic research on pharmaceutical manufacturing companies’efficiency is inadequate. Most of them used the whole industry or regional data and have come to the same conclusion:the operating efficiency of pharmaceutical manufacturing companies is very low. There is little research based on enterprise data. In the study of influence factors, due to different factors and methods scholars selected, the conclusion is different. Based on the existing literatures, this paper measures operating efficiency from the perspective of both static and dynamic, and studys the factors affecting operational efficiency. The study from static perspective focuses on operating efficiency’s levels and gaps. The study from dynamic perspective focuses on operating efficiency’s changes. In the study on influence factors, this paper selects factors from many angles to find ways to improve operational efficiency.According to the above research ideas, this paper’s framework is as follows. The first chapter is an introduction. This chapter mainly introduces the research background and significance. The second chapter is the theoretical basis of this paper. This chapter introduces the efficiency’s connotation and theories that study how to improve the efficiency, and summarizes the existing literatures. The third chapter measures the operational efficiency of pharmaceutical manufacturing enterprises from the perspective of both static and dynamic with Data Envelopment Analysis (DEA). Employee benefits payable, fixed assets and intangible assets are selected as input indicators, net profit and operating income are selected as output indicators. For the sake of data availability, this paper’s samples are selected from pharmaceutical manufacturing listed companies, excluding the missing data. A total of 24 listed companies in the pharmaceutical manufacturing industry are selected as the empirical samples. Since the data before 2009 misses more, this paper selects 2009-2014 annual data as the study period. The fourth chapter studys the influence factors of operational efficiency. This paper selects nature of equity, ownership concentration, capital structure, firm size, operational capacity and R&D capabilities as influence factors. The fifth chapter is the summary of this paper. This chapter summarizes the main conclusions of this paper, and makes suggestions for pharmaceutical manufacturing enterprises to improve the efficiency based on the regression results of Chapter Ⅳ.The main conclusions are as follows. The results of static angle measurement show that the technical efficiency level of China’s pharmaceutical manufacturing listed companies was not high. Decomposing the technical efficiency, pure technical efficiency and scale efficiency of the pharmaceutical manufacturing listed companies were not high, indicating their management capacity was poor, and the size of most companies did not reach optimal state. Comparing efficiency of enterprises, the gap of the technical efficiency between enterprises was big, and the gap of technical efficiency between enterprises was expanding. The gap of the pure technical efficiency between enterprises was also big, the same as the scale efficiency. The technical efficiency of Yunnan Baiyao and Hengrui Medicine is the highest of all samples.The results of dynamic angle measurement show that, from 2009 to 2014, the TFP of pharmaceutical manufacturing listed companies showed the trend of fluctuating. Decomposing the TFP index, the level of technology advances was constantly fluctuating. Decomposing the efficiency change index, technical efficiency, pure technical efficiency and scale efficiency had substantially the same trends, after 2011 the technology efficiency and pure technical efficiency were declining, and the scale efficiency was substantially declining except 2014, which means the company’s management ability were declining after 2011, and the size of the company was not suitable for the development of enterprises, resulting in technical efficiency of enterprises declining.The results of Tobit regression show that technical efficiency of pharmaceutical manufacturing enterprises are mainly influenced by their own factors. Specifically, the asset-liability ratio and technical efficiency of enterprises are negatively correlated. Company size and technical efficiency are positively correlated, which is consistent with the conclusions made in static efficiency measures. Operating capacity and technical efficiency of enterprises are positively correlated, which means pharmaceutical manufacturing enterprises can improve operating capacity to improve operating efficiency. R&D capabilities and technical efficiency of enterprises are positively correlated, which means pharmaceutical manufacturing enterprises can improve R&D capabilities to improve operating efficiency. The nature of equity and technical efficiency of enterprises are not related, the same as the ownership concentration.This article may be innovative in the following aspects. In the research object, the current research on pharmaceutical manufacturing operating efficiency is inadequate and most of them used the whole industry or regional data. There is little research based on enterprise data. This paper uses enterprise data to measure operational efficiency of pharmaceutical manufacturing enterprises. In the research perspective, the previous literatures main study from static or dynamic perspective. This paper studys from both static and dynamic perspective to fully understand the operating efficiency status of China’s pharmaceutical manufacturing enterprises.In the influence factors, the factors selected by previous research were limited, not considering the impact of various factors. This paper selects factors from many angles to make sure the study is comprehensive.The deficiencies of this paper are as follows. The samples this paper selected are small. Due to data availability, this paper only studies the pharmaceutical manufacturing enterprises listed companies apart from the company which has missing data and only 24 listed companies are chosen. In the study of the factors affecting operational efficiency, the operating capacity and R&D capabilities have significant positive impact on the technical efficiency. The operating capacity and R&D capabilities contain many elements, which can be studied from many different angles. Because the factors this paper considered are chosen from many different directions, this article doesn’t make detail analysis in operating capacity and R&D capabilities.