The Impact of Structural Capital on Business Performance in Jordanian Pharmaceutical Manufacturing Companies

Abstract

The purpose of the study was to investigate the influence of Structural Capital (SC) on Jordanian Pharmaceutical Manufacturing (JPM) Companies’ Business Performance (BP). It surveyed 132 managers by means of a questionnaire. Statistical techniques such as descriptive statistics, correlation, multiple regressions, stepwise regression, were employed. To confirm the suitability of data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used. The result of the study showed a positive significant relationship between SC and JMP Companies’ BP. It indicated that SC performance can clearly explain productivity and profitability more than market valuation. Furthermore, the result showed that the respondents believed that S&P and R&D variables positively and directly affect the JPM Companies’ BP, while the IPRs variable does not (negative) affect the JPM Companies’ BP.

The use of a single industry study design limits its generalisability to other industries. Extending the analyses to other industries represent future research opportunities. The research results might help both academics and practitioners. The data suggest that a similar set of SC indicators could be developed for other organizations and industries whether government, public or private, profitable or non-profitable organizations. SC should be taken into serious consideration when formulating the JPM Companies’ strategy. The current research may be considered as initiative study that highlights the effect of SC on JPM Companies’ BP in Jordan. It could also be an initiative study that divided SC into three variables and focuses on the role of each variable on Companies’ BP.

Keywords: Structural Capital (SC), Jordanian Pharmaceutical Manufacturing (JPM) Organizations, Business Performance (BP).