Value Creation and Productivity of Quoted Pharmaceutical Companies in Nigeria

Abstract

This study investigated the influence of value creation on the productivity of listed pharmaceutical companies in Nigeria, a sector essential for ensuring the availability of quality pharmaceutical products. Despite their strategic significance, many of these organizations faced productivity challenges primarily due to the insufficient integration of structured value creation strategies within their operational and strategic frameworks. The research aimed to empirically assess whether deliberate value creation initiatives could effectively improve organizational productivity in the Nigerian pharmaceutical industry. A survey research design was employed, collecting data from a sample of 308 key stakeholders, including marketing professionals, directors, and executive managers crucial to strategic decision-making and operational performance. A structured, validated questionnaire served as the primary data collection tool, with reliability confirmed by a Cronbach’s alpha coefficient exceeding 0.7. The data were analyzed using both descriptive and inferential statistical techniques to ensure robust interpretation and generalization of findings. The analysis revealed a statistically significant relationship between value creation and productivity among the listed pharmaceutical firms. The regression analysis yielded an adjusted R² value of 0.195, indicating that value creation explained a substantial portion of productivity variation, with the overall model significant at F(4, 297) = 19.181, p < 0.05. These findings underscore the critical role of value creation in enhancing organizational productivity, leading to the conclusion that aligning value creation strategies with organizational objectives can significantly boost productivity and competitiveness in Nigeria's pharmaceutical sector.