Impact of Organic Structure on Competitive Performance of Pharmaceutical Companies in Pakistan: Study of Mediating Roles

Abstract

The current state of competition puts pressure on business performance. In that scenario, it becomes important to study interrelationships among factors that could impact organizational performance. Although there is substantial research in international context regarding impact of various factors on performance but specifically, study concerning direct and indirect impact of organic structure on performance through learning and innovation is a significant information gap in context of Pakistan pharmaceutical industry, a well-established and growing industry in Pakistan. The prime objective of this research is to fill this information gap. On the basis of sample of 70 pharmaceutical companies in Pakistan, using SmartPLS3, it concludes that organization learning mediates between organic structure and innovation, and organization learning and innovation mediate between organic structure and competitive performance. The study reveals positive impact of organization learning on innovation and negative effect of organic structure on organization learning, innovation and competitive performance and opens avenues for further research on these variables for other industries and sectors of Pakistan as well. It contributes to theories on relevant variables such as resource based theory and organizational learning theory, and guides managers in pharmaceutical companies in their decision making.