The impact of sourcing strategies and logistics capabilities on organizational performance during the COVID-19 pandemic: Evidence from Jordanian pharmaceutical industries

Abstract

Achieving and maintaining good business performance is a core concern of every business entity. This quantitative study investigates the impact of sourcing strategies and logistics capabilities on the performance of Jordanian pharmaceutical enterprises using partial least square structural equation modeling (PLS-SEM). The views and perceptions of 951 managers and assistant manager respondents working in Jordanian pharmaceutical companies were gathered anonymously via an electronic online questionnaire using a convenience sampling technique. The findings revealed that sourcing strategies and logistical capabilities have a significant positive impact on organizational performance in pharmaceutical companies. Insourcing, near-sourcing, few / many suppliers, joint ventures, and virtual enterprises were perceived to be effective sourcing strategies in improving organizational performance. In contrast, outsourcing, and vertical integration were perceived to have a negligible impact on the performance in the context of pharmaceuticals. Furthermore, the findings confirmed that individual logistic capabilities (safety and compliance, storage, delivery, and imports and exports) of pharmaceutical firms were perceived as impacting positively on firm performance. This research provides useful insight for decision makers in pharmaceutical companies in Jordan when reviewing their supply chain, particularly during challenging and turbulent times such as the COVID-19 pandemic.