Towards environmental dynamism
Market volatility and innovation capacity of pharmaceutical industry
DOI:
https://doi.org/10.12712/rpca.v.193.68669Abstract
The objective of this study is to examine the move towards environmental dynamism by investigating how market volatility, in the form of price fluctuation, demand uncertainty, and compliance intensity, influences the innovation capacity of the pharmaceutical industry in Nigeria. Up to 207 middle and top-level staff in Tuyil pharmaceutical industry were surveyed using structure questionnaire. Data obtained was analysed using PLS-SEM. Findings revealed that compliance intensity, price fluctuation, and demand uncertainty which are variables of market volatility all significantly affects innovation capacity with all p-values less than 0.05 and the T statistics greater than 1.96. In conclusion, market volatility aspect of environmental dynamism strongly affects the innovation capacity of pharmaceutical industry. It was recommended that pharmaceutical industries managers should focus on developing unique and appealing compliance intensity, price fluctuation, and demand uncertainty that can ensure a strong market volatility for their innovation capacity.
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