DOI: 10.5176/2251-1970_BizStrategy15.17
Authors: Dr Xiaohong Li
Abstract: This paper addresses strategic importance of green technology innovation to pharmaceutical companies’ environmental sustainability development and competitive advantage. The literature emphasizes the critical role of technology innovation in gaining competitive advantage. Not all technological changes bring benefits to the company if it does not fit into its organizational structure and culture. Green technology innovation requires a company’s environmental awareness embedded in an organizational culture and structure to be effective. A multiple case study methodology is used in this study and questionnaire for data collection. Case study companies perceive technology as the most important factor followed by product quality and people’s wellbeing and health. The strategic importance of green technology has not yet been fully recognized, even though some actions have been conducted by some of the case study companies to reduce waste, emissions and pollution. Green technology offers strategic importance for pharmaceutical companies to develop its future business sustainability and gain competitive advantage. Green technology innovation alters the ways of business in terms of its operations process, capability and resources and differentiates its business position in a positive way in the industry. Management practice, such as lean manufacturing, and environmental improvement approaches, such as life cycle assessment (LCA), along with developing an environmental culture offers ways for pharmaceutical companies to implement green technology to fulfill its business strategy. This paper contributes to strategic management literature by exploring green technology and its importance role in operations and business strategy formulation and fulfillment in pharmaceutical manufacturing companies in developing countries.
Keywords: operations and business strategy, green technology innovation, Chinese pharmaceutical companies
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