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Determinants of Sustainability Performance in Pharmaceutical Distribution Industry

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2020, v.18 no.12, pp.91-100
https://doi.org/https://doi.org/10.15722/jds.18.12.202012.91
KIM, Yong-Ha
KIM, Young-Taek
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Abstract

Purpose: The objective of this study is to deepen our understanding of the key factors that determine sustainability in terms of suppliers based on the transactions between suppliers (pharmaceutical companies) and buyers (medical institutions) in the pharmaceutical distribution industry. Research design, data and methodology: Transaction justice factors were derived from three main components: distributive, procedural and interpersonal, five hypotheses were set up. The respondents from the data collected through an online survey are sales staff of pharmaceutical companies. Total of 319 questionnaires are collected and used to verify the hypotheses through the SPSS 22.0 and AMOS 22.0 programs. Results: Justice of transactions perceived by the salesperson of pharmaceutical companies was found to have a significant effect on the relationship commitment. Among them, procedural justice was found to have greatest relative influences. In addition, relationship commitment was found to have a significant effect on sustainability performance. Thus, all hypotheses were adopted. Conclusions: The results of this study, can be used as basic data for the guidelines for fair trade between pharmaceutical companies and medical institutions. In addition, it is expected that the study will have significance in that it examined sustainability through transactions with buyers from the viewpoint of suppliers.

keywords
Justice, Relationship Commitment, Sustainability Performance, Pharmaceutical Distribution

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