PLS Modelling of Factors Aff ecting the Cooperation Between Sales and Marketing in Pharmaceutical and Non-Pharmaceutical Manufacturing Firms

Abstract

Purpose – This paper aims to explore the manner in which cooperation between sales and marketing in pharmaceutical manufacturing companies (PMC) (n=16) and non-pharmaceutical manufacturing companies (NPMC) (n=31) is aff ected by selected indicators. It also attempts to demonstrate how the Partial Least Square (PLS) path modelling technique can reveal latent mechanisms in the interplay of the examined factors aff ecting SM cooperation. Design/methodology/approach – Data collection was carried out in the form of an online questionnaire. The rating scale data gathered was analyzed using PLS path modelling. Findings – Management culture (information exchange, coordination, vision, and communication) as the superblock of the model accounts for a high variance in SM cooperation in both PMCs (R 2=0.619) and NPMCs (R2=0.741). Out of the three variables determining management culture, in PMCs it is coordination (R2%=44), while in NPMCs it is information exchange (R2%=57) that accounts for most of the variance. The results clearly demonstrate that there are factors aff ecting SM cooperation that work diff erently in PMCs and NPMCs. Limitations – As the analysis in this research study was based on a convenience sample, its result should be interpreted with caution and cannot be generalized. Originality/value – This is the fi rst time that the SM interface mechanisms were compared in PMCs and NPMCs using PLS path modelling. PLS revealed latent relationships and mechanisms that play an important role in optimising SM cooperation.