Analysis of the influence of perceived self-efficacy on organizational performance among pharmaceutical managers: a structural equation study

Abstract

Abstract Objective To investigate the influence of perceived self-efficacy on organizational performance among operational, product and strategic managers in the pharmaceutical marketing industry. Method A cross-sectional study with a literature-based questionnaire administered to 241 managers proportioned across operational, product and strategic managerial roles using stratified random sampling. Structural equation modeling techniques in the analysis of moment structures software were used to examine causal relations between predictor and outcome variables. Study hypotheses were tested using inferential statistical measures with a P-value of < 0.05. Key findings A large number of respondents were operational sales managers (n = 138, 57.3%), followed by strategic managers (n = 64, 25.6%), and the least was product managers (n = 39, 16.2%). The measurement models of self-efficacy, organizational performance constructs and structural models had acceptable measures of fit. Three first-order constructs were derived from the self-efficacy construct namely: self-adaptability (regression coefficient, β = 0.237, P < 0.025), self-efficiency (β = 0.574, P < 0.001), and self-creativity (β = 0.649, P < 0.003). Structural equation modelling revealed a significant positive effect of perceived self-efficacy on organizational performance (R2 = 0.65, β = 0.651, P < 0.003). Simple plot analysis revealed lower performance scores at a moderate level of self-efficacy with operational sales managers compared to strategic and product managers. Multigroup analysis revealed no confounding effect of gender and type of firm on the hypothesized relationship (P > 0.05). Conclusions This study contributed another dimension to extant research on the relationship between perceived self-efficacy and performance among pharmaceutical managers. The study suggests targeted management training and collaborative learning for managers to improve their level of self-efficacy. Focal and routine training to enhance work-based competencies, professional development and problem-solving skills of pharmaceutical managers are advocated.