Faculty Scholarship 1994 - Present

New Perspectives on the Strategic Linkages Between Marketing Factors, R&D; Activity and Firm Performance in the U.S. Pharmaceutical Industry

The purpose of this study is to explore the impact of various market structure elements in the pharmaceutical industry in the United States, such as research and development (R&D), advertising, capital intensity, inventory turnover, and firm size on the financial accounting performance measurements, return on equity (ROE), and return on assets (ROA). The results indicate that two elements of market structure, firm size and R&D intensity, are associated significantly and positively with the financial performance indicators (ROA and ROE), advertising intensity and capital intensity are significantly and positively associated with ROE, and inventory turnover is not statistically significant for both ROA and ROE. Because these variables are not correlated, they have not been as proven explanatory elements in the determination of the financial performance.