THE ROLE OF ENVIRONMENTAL ADAPTABILITY COMPETENCY ON INCREASING THE PERFORMANCE OF PHARMACEUTICAL COMPANIES IN INDONESIA

Abstract

This research aimed at filling the gap in the research of tactical generic strategy which is relatively hard to find in pharmaceutical industry. The research method used multi group sequential equation modeling with top managers from 106 companies as the research samples. Those samples were from 225 pharmaceutical companies in Indonesia. The results of the research concluded that increasing the companies’ performance needed four (4) concepts; 1. Culture development of market orientation, 2. Organizational education, 3. The quality of strategic asset, and 4. Innovation. If the company has a high environmental adaptability competency, it will be recommended to develop drug products with prescription (ethical drugs). On the other hand, if the company has a low environmental adaptability competency, it will be recommended to develop over trading counter drugs with an innovative ability.