• https://theoejwilson.com/
  • santuy4d
  • mariatogel
  • santuy4d
  • garuda slot
  • garudaslot
  • https://edujournals.net/
  • nadimtogel
  • https://mitrasehatjurnal.com/
  • slot gacor hari ini
  • g200m
  • https://perpustakaan.stpreinha.ac.id/mahasiswa/
  • https://www.lml.stpreinha.ac.id/lab/
  • https://cursosvirtuales.icip.edu.pe/nice/
  • slot resmi
    • Concentration and Competition in the Pharmaceutical Sector in an Era of Challenges | Sunarmo | Jurnal Ekonomi Pembangunan

    Concentration and Competition in the Pharmaceutical Sector in an Era of Challenges

    Sunarmo Sunarmo, Elif Pardiansyah, Ani Asriyah

    Abstract


    In 2018, the Central Bureau of Statistics noted that the pharmaceutical industry grew 7.36 percent and slowed by 5.59 percent during the Covid-19 pandemic in 2020. Fluctuations in the growth of the pharmaceutical sector before and during the Covid-19 pandemic encouraged increased competition and concentration. This study examines the concentration and competition of pharmaceutical businesses listed on the Indonesia Stock Exchange from the first quarter of 2018 to the third quarter of 2020. The method used in this study is a quantitative approach with a concentration ratio model (CR) and the Hirschman-Herfindahl index (HHI). The calculation results show that the Kalbe Farma company controls over 65 percent of the market share, while 9 pharmaceutical companies contest the other 35 percent. KLBF is a company with the most sustainable competitive advantage compared to others; this can be seen from product differentiation, use of technology, and a superior market share of 65.39%. In addition, from the aspect of market competition, it shows that the pharmaceutical industry before and during the Covid-19 pandemic was in a tight oligopoly market with scores of 99.20 and 99.22. The results show the implications that pharmaceutical sector actors can carry out our policies related to competitive price competition. Another procedure is that companies must constantly observe and analyze the actions of other pharmaceutical companies in making business decisions.

    Keywords


    Concentration and competition; pharmaceutical Industry; tight oligopoly market

    Full Text:

    PDF

    References


    Ahmed, A., Chakraborty, D., & Bhattacharyya, R. (2020). The Recent Coronavirus (COVID-19) Pandemic: A Review of Issues for Indian Pharmaceutical Exports. In Foreign Trade Review, 55(3), 418-435. https://doi.org/10.1177/0015732520926329

    Ayati, N., Saiyarsarai, P., & Nikfar, S. (2020). Short and long term impacts of COVID-19 on the pharmaceutical sector. DARU Journal of Pharmaceutical Sciences, 28, 799-805. https://doi.org/10.1007/s40199-020-00358-5

    Banmairuroy, W., Kritjaroen, T., & Homsombat, W. (2022). The effect of knowledge-oriented leadership and human resource development on sustainable competitive advantage through organizational innovation’s component factors: Evidence from Thailand ’s new S- curve industries. Asia Pacific Management Review, 27(3), 200–209. https://doi.org/10.1016/j.apmrv.2021.09.001

    Behera, C., & Rath, B. N. (2021). The COVID-19 pandemic and Indian pharmaceutical companies: An event study analysis. Buletin Ekonomi Moneter Dan Perbankan, 24, 1–14. https://doi.org/10.21098/BEMP.V24I0.1483

    BPS. (2020). Laju Pertumbuhan PDB Seri 2010. Badan Pusat Statistik.

    Devine, M. T., & Siddiqui, S. (2023). Strategic investment decisions in an oligopoly with a competitive fringe: An equilibrium problem with equilibrium constraints approach. European Journal of Operational Research, 306(3), 1473–1494. https://doi.org/10.1016/j.ejor.2022.07.034

    Edeling, A., & Himme, A. (2018). When Does Market Share Matter? New Empirical Generalizations from a Meta-Analysis of the Market Share-Performance Relationship. Journal of Marketing, 82(3), 1-24

    Emamgholipour, S., & Agheli, L. (2019). Determining the structure of pharmaceutical industry in Iran. International Journal of Pharmaceutical and Healthcare Marketing, 13(1), 101–115. https://doi.org/10.1108/IJPHM-06-2017-0030

    Furtner, D., Shinde, S. P., Singh, M., Wong, C. H., & Setia, S. (2022). Digital Transformation in Medical Affairs Sparked by the Pandemic: Insights and Learnings from COVID-19 Era and Beyond. Pharmaceutical Medicine, 36(1). https://doi.org/10.1007/s40290-021-00412-w

    Gyimah, D., Siganos, A., & Veld, C. (2021). Effects of financial constraints and product market competition on share repurchases. Journal of International Financial Markets, Institutions and Money, 74. https://doi.org/10.1016/j.intfin.2021.101392

    Hoskins, J. D., & Carson, S. J. (2022). Industry conditions, market share, and the firm’s ability to derive business-line profitability from diverse technological portfolios. Journal of Business Research, 149, 178–192. https://doi.org/10.1016/j.jbusres.2022.05.026

    Hussain, M., Bashir, U., & Bilal, A. R. (2020). Effect of monetary policy on bank risk: does market structure matter? International Journal of Emerging Markets, 16(4), 696–725. https://doi.org/10.1108/IJOEM-09-2019-0674

    IDX. (2020). Laporan Keuangan Tahunan. https://www.idx.co.id/id/perusahaan-tercatat/laporan-keuangan-dan-tahunan

    Ipek, O., & Ipek, E. (2018). Market Structure of the Turkish Pharmaceutical Industry. Business and Economics Research Journal, 9(3), 449–462. https://doi.org/10.20409/berj.2018.116

    Jaloudi, M. (2019). Market Structure, Efficiency, and Performance of Jordan Insurance Market. International Journal of Business and Economics Research, 8(1), 6-13. https://doi.org/10.11648/j.ijber.20190801.12

    Kochakkashani, F., Kayvanfar, V., & Haji, A. (2023). Supply chain planning of vaccine and pharmaceutical clusters under uncertainty: The case of COVID-19. Socio-Economic Planning Sciences, 87, 10162. https://doi.org/10.1016/j.seps.2023.101602

    Lelissa, T. B., & Kuhil, A. M. (2018). The structure conduct performance model and competing hypothesis–A review of literature. Structure, 9(1), 76-89. https://doi.org/10.1007/s40199-020-00358-5

    Lim, H., & Rokhim, R. (2020). Factors affecting profitability of pharmaceutical company: an Indonesian evidence. Journal of Economic Studies, 48(5), 981–995. https://doi.org/10.1108/JES-01-2020-0021

    Mahajan, V. (2019). Structural changes and trade competitiveness in the Indian pharmaceutical industry in product patent regime. International Journal of Pharmaceutical and Healthcare Marketing, 13(1), 21–39. https://doi.org/10.1108/IJPHM-12-2016-0066

    Minangsari, F., Robiani, B., & Mukhlis (2019). The Efficiency of the Pharmaceutical Industry in Indonesia: A Stochastic Frontier Approach. Jurnal Ekonomi Pembangunan, 17(2): 49-58. DOI: https://doi.org/10.29259/jep.v17i2.8949

    Romaniuk, J., Dawes, J., & Nenycz-Thiel, M. (2018). Modeling brand market share change in emerging markets. International Marketing Review, 35(5), 785–805. https://doi.org/10.1108/IMR-01-2017-0006

    Saeed, A., Alnori, F., & Yaqoob, G. (2023). Corporate social responsibility, industry concentration, and firm performance: Evidence from emerging Asian economies. Research in International Business and Finance, 64. https://doi.org/10.1016/j.ribaf.2022.101864

    Sahile, S. W. G., Tarus, D. K., & Cheruiyot, T. K. (2015). Market structure-performance hypothesis in Kenyan banking industry. International Journal of Emerging Markets, 10(4), 697-710.

    Silalahi, T., Manurung, A. H., & Hidayat, Y. T. (2015). The Market Structure of The Bank, Its Performance, and the Macroprudential Policy. Buletin Ekonomi Moneter dan Perbankan, 18(1), 46-60.

    Sunarmo. (2018). Market Structure and Competition of Islamic Banking in Indonesia. Buletin Ekonomi Moneter dan Perbankan, 20(3), 307-324.

    Talpur, A. B. (2023). Market power and concentration-performance analysis of the banking sector: A comparative study of Singapore and Pakistan. Social Sciences & Humanities Open, 7(1), 100383. https://doi.org/10.1016/j.ssaho.2022.100383

    Vives, X. (2020). Common ownership, market power, and innovation. International Journal of Industrial Organization, 70, 102528. https://doi.org/10.1016/J.IJINDORG.2019.102528

    Wouters, O. J., Sandberg, D. M., Pillay, A., & Kanavos, P. G. (2019). The impact of pharmaceutical tendering on prices and market concentration in South Africa over a 14-year period. Social Science and Medicine, 220, 362–370. https://doi.org/10.1016/j.socscimed.2018.11.029




    DOI: https://doi.org/10.29259/jep.v21i1.20779

    Refbacks

    • There are currently no refbacks.


    Creative Commons License
    This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

    Jurnal Ekonomi Pembangunan
     Jalan Raya Palembang-Prabumulih Km. 32
    Jurusan Ekonomi Pembangunan, Fakultas Ekonomi Universitas Sriwijaya
    Indralaya, Sumatera Selatan, Indonesia
    Email: jep.unsri@gmail.com, Tel/Fax : (0711)580231

    p-ISSN: 1829-5843, e-ISSN 2685-0788

    Creative Commons License

    Jurnal Ekonomi Pembangunan by http://ejournal.unsri.ac.id/index.php/jep 

    is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.  

    Jurnal Ekonomi Pembangunan is Indexed by:

    Logo Google Scholar Unsri  Moraref One Search