Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts
The pharmaceutical industry is a cornerstone of national economies and plays a critical role in public health. However, China’s pharmaceutical industry faces significant challenges, including regional disparities in development. The existing research on operational efficiency evaluation primarily fo...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Multidisciplinary Digital Publishing Institute (MDPI)
2025
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| Online Access: | http://psasir.upm.edu.my/id/eprint/118808/ http://psasir.upm.edu.my/id/eprint/118808/1/118808.pdf |
| _version_ | 1848867793725816832 |
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| author | Jiaqiang, Sun Rosli, Anita Daud, Adrian Xia, Yan |
| author_facet | Jiaqiang, Sun Rosli, Anita Daud, Adrian Xia, Yan |
| author_sort | Jiaqiang, Sun |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The pharmaceutical industry is a cornerstone of national economies and plays a critical role in public health. However, China’s pharmaceutical industry faces significant challenges, including regional disparities in development. The existing research on operational efficiency evaluation primarily focuses on financial or innovation metrics, lacking a comprehensive approach. Moreover, studies on the environmental impact on operational efficiency often rely on a limited set of indicators, failing to offer a holistic understanding of how environmental factors influence efficiency. This study aims to address these gaps by comprehensively evaluating operational efficiency and analyzing the impact of broader environmental factors on efficiency. To achieve these objectives, the study employs a Three-Stage Data Envelopment Analysis method combined with Principal Component Analysis to evaluate the operational efficiency of the pharmaceutical industry across 31 provinces in China, considering both financial and innovation dimensions.The findings reveal that overall efficiency has improved annually, with regional disparities gradually narrowing. Specifically, innovation capability and innovation environment have a positive impact on operational efficiency, while living standards and openness exhibit a negative correlation. Additionally, the current environmental conditions in the northwestern region are found to be conducive to the development of the pharmaceutical industry. This study is the first to integrate three-stage data envelopment analysis with principal component analysis, constructing a comprehensive framework for analyzing the relationship between environmental factors and operational efficiency. The results provide empirical evidence for policymakers aiming to enhance the efficiency of the pharmaceutical industry. |
| first_indexed | 2025-11-15T14:42:09Z |
| format | Article |
| id | upm-118808 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:42:09Z |
| publishDate | 2025 |
| publisher | Multidisciplinary Digital Publishing Institute (MDPI) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1188082025-07-24T06:26:27Z http://psasir.upm.edu.my/id/eprint/118808/ Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts Jiaqiang, Sun Rosli, Anita Daud, Adrian Xia, Yan The pharmaceutical industry is a cornerstone of national economies and plays a critical role in public health. However, China’s pharmaceutical industry faces significant challenges, including regional disparities in development. The existing research on operational efficiency evaluation primarily focuses on financial or innovation metrics, lacking a comprehensive approach. Moreover, studies on the environmental impact on operational efficiency often rely on a limited set of indicators, failing to offer a holistic understanding of how environmental factors influence efficiency. This study aims to address these gaps by comprehensively evaluating operational efficiency and analyzing the impact of broader environmental factors on efficiency. To achieve these objectives, the study employs a Three-Stage Data Envelopment Analysis method combined with Principal Component Analysis to evaluate the operational efficiency of the pharmaceutical industry across 31 provinces in China, considering both financial and innovation dimensions.The findings reveal that overall efficiency has improved annually, with regional disparities gradually narrowing. Specifically, innovation capability and innovation environment have a positive impact on operational efficiency, while living standards and openness exhibit a negative correlation. Additionally, the current environmental conditions in the northwestern region are found to be conducive to the development of the pharmaceutical industry. This study is the first to integrate three-stage data envelopment analysis with principal component analysis, constructing a comprehensive framework for analyzing the relationship between environmental factors and operational efficiency. The results provide empirical evidence for policymakers aiming to enhance the efficiency of the pharmaceutical industry. Multidisciplinary Digital Publishing Institute (MDPI) 2025 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/118808/1/118808.pdf Jiaqiang, Sun and Rosli, Anita and Daud, Adrian and Xia, Yan (2025) Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts. Economies, 13 (4). art. no. 90. pp. 1-35. ISSN 2227-7099 https://www.mdpi.com/2227-7099/13/4/90 10.3390/economies13040090 |
| spellingShingle | Jiaqiang, Sun Rosli, Anita Daud, Adrian Xia, Yan Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title | Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title_full | Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title_fullStr | Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title_full_unstemmed | Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title_short | Evaluation of operational efficiency in China’s pharmaceutical industry and analysis of environmental impacts |
| title_sort | evaluation of operational efficiency in china’s pharmaceutical industry and analysis of environmental impacts |
| url | http://psasir.upm.edu.my/id/eprint/118808/ http://psasir.upm.edu.my/id/eprint/118808/ http://psasir.upm.edu.my/id/eprint/118808/ http://psasir.upm.edu.my/id/eprint/118808/1/118808.pdf |