Professional Documents
Culture Documents
INTRODUCTION
The pharmaceutical industry in Nigeria has witnessed tremendous growth in Nigeria both
technologically and human capacity. The advanced methods of analysis, new technologically
operated machines and standardized procedures have necessitated the need to have skilled
personnel to handle key jobs. In Nigeria, many pharmaceutical companies are driving at meeting
the required standards by using advanced equipment and skilled personnel to push their product
outside the shores of Nigeria. Nevertheless, that can be achieved only if the WHO standard is
There are only but four pharmaceuticals companies that have met the WHO standard in Nigeria
out of over one hundred and twenty pharmaceuticals companies that have interest. The major
problem of those companies that have not been pre-qualified is the lack of engineering expertise
needed to execute the projects. For every manufacturing plant become a world class factory,
engineers will have to be in the forefront of driving the below tasks /jobs and more
According to Brozen (1998), engineers are indispensable tools in the growth and sustenance of
the pharmaceutical industry in Nigeria. In Neros Pharmaceuticals ltd, the achievements made so
far in getting the WHO pre-qualification has been as a result of the expertise of the engineers
handling virtually every section of company- the design, execution, maintenance, control
,management etc.
The Engineering profession is vast and very objective; therefore it plays a key role in the
Nigerian Pharmaceuticals industry. The feat achieved by major local drug manufacturers is
1
driven by the engineering skilled workers. Companies like May & Baker, Chi Pharmaceuticals,
Juhel Pharmacy and so on made inroads into the Pharmaceutical industry through the expertise
of some engineers in their project execution and maintenance of their HVAC (Heating
ventilation & Air Conditioning). To achieve great feats by the companies mentioned above,
engineers engaged in the Bid preparation, Project opening, Detailed Planning, Qualification,
Nonetheless, maintenance was not left out as Engineers still forms a part of the day to day
running of the factory which includes but not limited (Gala and Branch, 2000).
The profession of Pharmacy is a long old one. Its development parallels that of man. Ancient
man learned from instinct, from observation of birds and beasts. Cool water, a leaf, dirt, or mud
was his first soothing application. By trial, he learned and eventually applied his knowledge for
the benefit of others. In the medieval times the methods were crude, many of today's medicines
apply sophisticated procedures and methods. The pharmaceutical sciences combine a broad
range of scientific disciplines that are critical to the discovery and development of new drugs and
therapies. Pharmaceutical sciences can be broadly classified into the following main categories,
The Global Pharmaceutical Industry has become a major contributor to the global Economy. In
2012, total world Pharmaceutical market was worth an estimated 857 Billion dollars. This is
twice the total GDP of Nigeria, the biggest Economy in Africa. The United States and Canada
remained the World’s largest market with 41 percent share; Europe came next with 26.7 percent,
followed by Japan with 11.7 percent. Africa and Asia (excluding Japan) had 14.7 percent while
Latin America had the balance of 5.9 percent. When the data is further disaggregated, Sub-
2
Saharan Africa will be seen to contribute less than 2 percent of the Global Pharmaceutical
participation of stakeholders in the medicine supply chain (WHO and Federal Ministry of Health,
2007), multiple manufacturing sites for the same producer, the presence of extensive illicit
Most of Nigeria’s health indicators are poor and it will be impossible for the country to meet
most of the targets for the Millennium Development Goals (MDGs) by 2015. The challenges
facing the health sector include the failure of Government to play an effective stewardship role,
fragmented health service delivery, inadequate and inefficient financing, weak health
infrastructure, inefficient distribution of the health workforce and poor coordination amongst key
players.
According to the 2006 National Census, the population of Nigeria was 160 million and thus
constitutes potentially the largest domestic market in Africa. A large proportion of the population
suffer from both infectious and non-infectious diseases but their purchasing power is weak given
the level of poverty. Estimates of the size of the pharmaceutical market in Nigeria vary
pharmaceuticals and healthcare products market to be in excess of US$ 2 billion annually. The
estimated market for prescription ethical pharmaceuticals is US$ 500 million and that for over
the counter (OTC) pharmaceuticals about US$ 900 million. Furthermore, PMG-MAN estimates
the Nigerian market for biological products (including vaccines, insulin, interferon, etc.) to be
3
worth about US$ 100 million. In addition, related healthcare and lifestyle products account for
about US$ 500 million. Business intelligence services estimate the pharmaceutical market in
Nigeria at US$ 600 million (Business Monitor International BMI 2010) for 2009. Out of this
figure, BMI attributes the largest share of US$ 418 million to generic medicines, US$ 121
million to over the counter (OTC) products and US$ 61 million to patented products. Frost &
Sullivan (2009) estimated a pharmaceutical market value of US$ 740 million in 2009. Out of this
figure, US$ 266.4 million were attributed to generic medicines, US$ 177.6 million to branded
products and US$ 296 million to OTC products (Frost & Sullivan 2010). Nigeria also provides
60 per cent of the health products consumed in the Economic Community of West African States
(ECOWAS) by volume (PMG-MAN, 2010) and, with an estimated population of about 600
million; the ECOWAS sub-region represents a huge potential market Brozen, K. (2007).
Looking at these, it will be a huge problem for Nigeria and other countries in West African
The main purpose of this research is to identify impact of engineering expertise in the Growth of
Pharmaceutical industry in Neros Pharmaceuticals Ltd Nigeria. Other objectives are to:
iii Investigate how Neros engineering expertise affect the growth in Neros
pharmaceutical industry.
4
1.4. Research Questions
iii How Neros engineering expertise affect the growth in Neros pharmaceutical firm?
H1: There is no relationship between engineering expertise and the growth of pharmaceutical
industry in Nigeria
H3: The growth of Neros pharmaceutical firm does not depends on engineering expertise.
This study would address struggles faced by some Pharmaceutical firms due to lack of expertise
engineers. The outcome of the research will improve and increase the level of awareness of
engineers and professionals in the industry how to increase their performance for the betterment
of the industry as whole. It will also serve as reverence knowledge to academic environment,
student, and stakeholders in the pharmaceutical industry; finally it will be of help to the economy
The essence of the study is to investigate the impact of engineering expertise in the Growth of
Pharmaceutical industry in Neros Pharmaceuticals Ltd Nigeria. The scope of study will limit to
5
Neros pharmaceutical company. Also, the limitations to this study include the availability of time
to carry out the study due to the allocated time given. There is also the limitation of skills and
money required to carry out a standard investigation, as this is my first research project, my
expertise is not adequate. In addition, there is constraint in getting adequate materials and time
to source for information which could be justified due to the fact that this is a topic with little
Industry: It is group of companies carrying out the same function, or produce related goods and
6
References
Brozen, Y. (2007). Concentration, Mergers and Public Policy. New York: Macmillan.
Business Day. 2014. ‘Pharmaceuticals in Aggressive Expansion for Global Market Play.’
2 September.
Cockburn, I. M. (2008). ‘The Changing Structure of the Pharmaceutical Industry.’ Health Affairs
23 (1): 10–22.
Demsetz, H. (1996). ‘Industry Structure, Market Rivalry and Public Policy.’ Journal of Law and
Gale, B. T., and Branch, B. S. (2000). ‘Concentration versus Market Share: Which Determines
7
CHAPTER TWO
LITERATURE REVIEW
2.1 Preamble
This chapter briefly reviews the related literatures conducted on the area of the study. By
embarking on such pursuit, the research was guided accordingly by discovering the research
trend regarding the topic and what it is yet to study. It reviews the relevant literature on the
Pharmaceuticals Ltd Nigeria. Several scholarly books and journals were also conferred with in
the study. Some of the issues discuss include theoretical, conceptual and empirical framework of
the study.
The framework of market structure conduct and performance (s-c-p) originated from neo
classical’ attempts to analyze markets. The structure conduct and performance paradigm was
developed by the Harvard school of thought and popularized between 1940s and 1960s. Its
empirical work, as carried out by Bain in 195, involved identifying the correlations between the
pharmaceutical engineer expertise and their performance (Olagunju et al. 2012). The structure,
conduct and performance empirical study have led in this regard to the implementation of most
anti-trust legislation.
Peltzman (1976) of the Chicago school of thought in his study on ‘General Theory of
Regulation’ followed suit by emphasizing the rationale for firms becoming big. The study also
looked at price theory and econometric estimation. A comprehensive review of the studies was
provided by (Schmalensee, 1989). Prior to 1990, game theories took the center stage with
emphasis on strategic decision making and the Nash equilibrium concept (Tirole 1988). After
8
1990, however, empirical industrial organization making use of economic theory and
analysis, entry and exit as well as the identification of market power in pharmaceutical industry.
The underlying assumption of the market structure, conduct, and performance analysis is the
inverse relation between the degree of market concentration and degree of competition in the
industry. This is so because market concentration encourages collusive behavior among firms.
a direct relationship between the degree of market concentration and the degree of competition
among firms. This hypothesis will be supported if there is a positive relationship between market
profits), regardless of the efficiency (measured by market share) of the firm. Thus firms in more
concentrated industries will earn higher profits than firms operating in less concentrated
The theoretical starting point in the explanation of the s-c-p framework originated from the
extreme microeconomic theories of market structure; monopoly and perfect competition. The
structural characteristics of the perfectly competitive market are a large number of firms with
almost equal sizes with no barrier to entry. Long-run equilibrium price equals marginal and
Under monopoly, however, the industrial structure is characterized by one player (firm) with
high restriction to entry and the outcome of such barrier is that marginal cost is equated with
marginal revenue, setting price above the marginal cost and reaping supernormal profits in the
process. Consequent upon this, the position of any particular industry can be defined along this
9
spectrum by considering the structure of such industry along the number of firms in such
industry, the ease (or otherwise) of entry and from such structure, predict the performance of that
In summary, the s-c-p paradigm predicts a positive relationship between the level of
concentration in a given market and profits and output prices (Mason 1957).
Many years ago patient recruitment was an issue for pharmaceuticals industry. The engineers
have designed a technology known as Electronic Health Records(EHRs) that enables patients to
get more involved in their treatments, which has enabled companies to recruit via patient
advocacy groups, social media, mobile devices, and the Internet. Increasingly, more and more
Technology proliferation, especially the growth of EHRs, EMRs, and PHRs [personal health
records] has been huge” James, J. Gillespie: Life Science leader, 2015. EHRs have the potential
to reduce the time and cost of trials. The whole effort of collecting data, validating data,
From early beginnings where contract research organizations (CROs) were brought in for
elements of routine work for any case of Research and development of new drugs in
becoming the norm. The previous CRO model was usually based on a fee for service. It involved
very limited interaction and sharing of knowledge the end point was the result of the work.
However, nowadays Engineers are involved in the research and development. This modern
10
model of collaborative working and externalization means that the ‘virtual teams’ that are
created must be able to safely share data and knowledge but also be able to trace who did what
when and why to keep the patent ball rolling. When collaboration is successful, each party must
be able to repatriate the data it owns into its own systems to ensure that the knowledge and
intellectual property (IP) are integrated and useable and consumable by others within the
organization. In effect, machines developed and operated are all done by the engineers, even in
The Global Pharmaceutical Industry has become a major contributor to the global Economy. In
2012, total world Pharmaceutical market was worth an estimated 857 Billion dollars. This is
twice the total GDP of Nigeria, the biggest Economy in Africa. The United States and Canada
remained the World’s largest market with 41 percent share; Europe came next with 26.7 percent,
followed by Japan with 11.7 percent. Africa and Asia (excluding Japan) had 14.7 percent while
Latin America had the balance of 5.9 percent. When the data is further disaggregated, Sub-
Saharan Africa will be seen to contribute less than 2 percent of the Global Pharmaceutical
As well as driving medical progress by researching, developing and bringing new medicines that
improve health and quality of life for patients around the globe, the researched based
Pharmaceutical industry is a key asset to global economy. It is a high technology sector with the
highest added value per person employed, significantly higher than the average value for high
tech and manufacturing industries. According to Eurostat data (2004), the pharmaceutical
Industry is also the sector with the highest ratio of R&D investment to net sales. In 2012 R&D
11
business R&D expenditure worldwide. (ISPE Journal: Pharmaceutical engineering, vol.25 No 5,
September/October 2005)
Furthermore, some local drug manufacturers are currently upgrading their facilities to comply
with WHO (World Health Organization) prequalification and WHO GMP (current Good
Manufacturing Practice) requirements. If successful, this will enable them to promote the export
tenders called by international development partners. Consequently, the 70 per cent target set in
the National Drug Policy should be achievable within the next 10 years. The current Government
in Nigeria has embarked on an ambitious agenda to become one of the top 20 economies of the
world by the year 2020 and this is its prime priority. Undoubtedly, such an initiative will impact
positively on the whole industrial sector, including local production of pharmaceuticals, and will
According to Tapan (2005), the survey conducted in the framework of this report, there are about
120 local drug manufacturers in Nigeria. Capacity utilization within the sector is about 40
percent, meaning that there is a large volume of underutilized manufacturing capacity which
could be applied to produce new products upon demand. According to the Pharmaceutical
trained manpower and basic manufacturing infrastructure already exist. Thus, Nigeria has the
potential to establish itself as the leading manufacturer and distributor of essential medicines in
sub-Saharan Africa. However, studies in some countries have shown that the researched-based
pharmaceutical industry generates three to four times more employment indirectly- upstream and
12
downstream than it does directly. Further, a significant proportion of these are valuable skilled
jobs. More and more, these categories are beginning to overlap. For example, a scientific
engineer working in Drug Delivery needs to understand how toxicology affects Drug Action, and
a chemist working in Drug Discovery and Design must know about the pharmacokinetics of
Drug Delivery. For this reason, pharmaceutical scientists and engineers are required to have a
The Engineering profession is vast and very objective; therefore it plays a key role in the
Nigerian Pharmaceuticals industry. The feat achieved by major local drug manufacturers is
driven by the engineering skilled workers. Companies like May & Baker, Chi Pharmaceuticals,
Juhel Pharmacy and so on made inroads into the Pharmaceutical industry through the expertise
of some engineers in their project execution and maintenance of their HVAC (Heating
ventilation & Air Conditioning). To achieve great feats by the companies mentioned above,
engineers engaged in the Bid preparation, Project opening, Detailed Planning, Qualification,
Others include:
Maintenance tasks
13
According to the 2006 National Census, the population of Nigeria was 140 million and thus
constitutes potentially the largest domestic market in Africa. A large proportion of the population
suffer from both infectious and non-infectious diseases but their purchasing power is weak given
the level of poverty. Estimates of the size of the pharmaceutical market in Nigeria vary
Association of Nigeria (PMGMAN) estimated the size of the total pharmaceuticals and
healthcare products market to be in excess of US$ 2 billion annually. The estimated market for
prescription ethical pharmaceuticals is US$ 500 million and that for over the counter (OTC)
pharmaceuticals about US$ 900 million. Furthermore, PMG-MAN estimates the Nigerian market
for biological products (including vaccines, insulin, interferon, etc.) to be worth about US$ 100
million. In addition, related healthcare and lifestyle products account for about US$ 500 million.
Business intelligence services estimate the pharmaceutical market in Nigeria at US$ 600 million
(Business Monitor International BMI 2010) for 2009. Out of this figure, BMI attributes the
largest share of US$ 418 million to generic medicines, US$ 121 million to over the counter
(OTC) products and US$ 61 million to patented products. Frost & Sullivan estimated a
pharmaceutical market value of US$ 740 million in 2009. Out of this figure, US$ 266.4 million
were attributed to generic medicines, US$ 177.6 million to branded products and US$ 296
million to OTC products (Frost & Sullivan 2010). Nigeria also provides 60 per cent of the health
products consumed in the Economic Community of West African States (ECOWAS) by volume
(PMG-MAN, 2010) and, with an estimated population of about 600 million, the ECOWAS sub-
PMG-MAN, Abuja).
14
2.2.5 Issues in Pharmaceutical Industry
Limited Approval of New Chemical Entities, New Chemical Entities (NCEs) are the compounds
that emerge from the process of drug discovery. Research done by IMS research shows that there
has been a significant decline in the number of NCEs launched over the last ten years. This
phenomenon has not been restricted to just a few therapeutic areas or companies and is
compounded by the fact that the value of the launches that have occurred are significantly less
than in the years when blockbusters drugs provided significant increase in revenue.
The reason for this decline has been attributed to many factors including increased scrutiny and
higher safety standards dictated by the Food and Drug Administration (FDA) authorities, broad
portfolio of early stage therapeutic products being looked at but with not much success in
creating novel medicines in the vast majority of the areas, despite advances in technology and
processes. Regardless of the reasons, the companies have to deal with the reality that there are
less new products being approved and therefore they are failing to achieve their potential to
provide treatment for patients and commercial benefits to their companies. Figure 2 shows the
While the solution to this problem starts in the area of research and development (R&D), the
business aspects is of critical importance. It takes about 10–12 years to bring a medicine to
market from discovery through launch. While it may be possible to decrease this time using
better processes and technology, fixing the business model where each company invests in R& D
from discovery through product launch (lifecycle management) is just as critical. Additionally,
companies need to make better portfolio decisions that enables them to sharpen the focus of their
investments and where possible look for opportunities to work with other entities to share the
15
2.2.6 Generic Drug Challenges
Increased Generic Competition Generic drugs have always been a big challenge for the
established big Pharma companies. Big Pharma companies spend many years and millions of
dollars (approximately $802 million estimated by the Congressional Budget Office, CBO) from
discovery to product launch. In 1976 the estimate was $137 million dollars and by 1990 it had
increased to $445 million dollars. These companies are able to take advantage of their hard work
and investments while their patents are in effect, but as soon as these patents expire, the generic
drug makers are able to undercut the big Pharma profit margin within 6 months by producing
The recent economic downturn, healthcare reform in many countries and less disposable income
for customers have made the generic option more attractive to payers, insurance companies and
consumers concerned with managing their costs. As a result the generic drug makers have been
making inroads in the product sales of the branded products and this along with patent expiration
has led to projections of an increase in generic sales of $12 billion dollars from $18 billion in
2008 to $30 billion in 2012 Generic drugs are here to stay, and many will argue that they play a
very important part in dampening the rising cost of healthcare for consumers, especially with the
ever increasing medical and insurance costs. In this environment big Pharma companies need to
get creative and change or modify their business model to be successful. Options available to
them could include, improving their product lifecycle process to provide additional value to
patients on compounds that currently exist, partnering with biotech and generic companies to
discover additional indications and uses for their products. Another approach that could be
considered is to develop their own generic drug infrastructure and competence so they can tap
into certain markets where the cost of brand drugs may be prohibitive, but the generic versions
16
could help them to gain access to the market or region once the patent life has expired. This
The recent (2006–2010) economic downturn has in many situations intensified and refocused
people's attention on regulation in the Pharma industry. Some of the arguments in the fall of
The debate has been driven both by the need for the improvement in the regulatory process to
meet the current needs of all the stakeholders as well as the stated and in some cases implied
need to ensure that the expected benefits are aligned with the cost for the insurance, products and
services.
This reality will prompt and in many cases force big Pharma companies to revamp their cost
structures as governments, insurance companies, payers and patients focus on reducing the
spending on healthcare.
These cost and other related issues could be seen more as the symptom of the underlying
problem. The real issue is that there is a need for Pharma companies to be able to demonstrate
the value they bring to their patients and other stakeholders. In other words, show the value that
can be provided to the patient by the products they submit for approval, especially where they
are in therapeutic areas that are already being addressed while the needs of many others are not
The Food and Drug Administration (FDA) in the Unites States and other like organizations in
other countries have as one of their main mandates, the health and safety of the society. Big
Pharma could partner with these agencies by leveraging some of the cutting edge technology
they (big Pharma) have to speed up their processes, a win-win proposition. This would also
17
require a higher level of communication and openness than currently exists so the needs and
Regulation also impacts many other issues and stakeholders concerned about issues like Global
Warming (the effects of manufacturing plants on the environment) Animal Rights groups
(resistance to testing in animals) and many other groups. These groups often have not only the
monetary resources but also the political connections that can make it very difficult for Pharma
companies to operate to their full potential in many countries and markets. Pharma companies
would be well served to understand the concerns and improve these relationships and not get into
a situation where they have trouble marketing and selling their products after clearing the high
hurdle of research and development and passing product efficacy and safety clinical trials.
participation of stakeholders in the medicine supply chain (WHO and Federal Ministry of Health,
2007), multiple manufacturing sites for the same producer, the presence of extensive illicit
Most of Nigeria’s health indicators are poor and it will be impossible for the country to meet
most of the targets for the Millennium Development Goals (MDGs) by 2015. The challenges
facing the health sector include the failure of Government to play an effective stewardship role,
fragmented health service delivery, inadequate and inefficient financing, weak health
infrastructure, inefficient distribution of the health workforce and poor coordination amongst key
players.
According to the 2006 National Census, the population of Nigeria was 160 million and thus
constitutes potentially the largest domestic market in Africa. A large proportion of the population
18
suffer from both infectious and non-infectious diseases but their purchasing power is weak given
the level of poverty. Estimates of the size of the pharmaceutical market in Nigeria vary
pharmaceuticals and healthcare products market to be in excess of US$ 2 billion annually. The
estimated market for prescription ethical pharmaceuticals is US$ 500 million and that for over
the counter (OTC) pharmaceuticals about US$ 900 million. Furthermore, PMG-MAN estimates
the Nigerian market for biological products (including vaccines, insulin, interferon, etc.) to be
worth about US$ 100 million. In addition, related healthcare and lifestyle products account for
about US$ 500 million. Business intelligence services estimate the pharmaceutical market in
Nigeria at US$ 600 million (Business Monitor International BMI 2010) for 2009. Out of this
figure, BMI attributes the largest share of US$ 418 million to generic medicines, US$ 121
million to over the counter (OTC) products and US$ 61 million to patented products. Frost &
Sullivan (2009) estimated a pharmaceutical market value of US$ 740 million in 2009. Out of this
figure, US$ 266.4 million were attributed to generic medicines, US$ 177.6 million to branded
products and US$ 296 million to OTC products (Frost & Sullivan 2010). Nigeria also provides
60 per cent of the health products consumed in the Economic Community of West African States
(ECOWAS) by volume (PMG-MAN, 2010) and, with an estimated population of about 600
million; the ECOWAS sub-region represents a huge potential market Brozen, K. (2007).
Looking at these, it will be a huge problem for Nigeria and other countries in West African
19
2.2.9 Engineer in Neros Pharmaceutical Firm
they form a major part of the company’s success story in achieving a world class company. They
are involved in the conception, design, construction, and operation of the research facilities and
the manufacturing plant. Also they are involved in the conception, design, scale-up,
manufacturing, and labeling and packaging processes in the conversion of chemical and
safety of the end product, and maintaining a level of personal and environmental safety. In
a). Challenges
This project examines the challenges facing the Pharmaceutical industry in Nigeria as a result of
the non-inclusion of Engineers in driving the industry. Major challenges facing the complex
Pharmaceuticals industry are highlighted and discussed. These include Regulatory changes and
Political Impact, Legislation, Scientist and Engineers dichotomy, Poor remuneration and Lack of
Capacity building
theory has been documented in empirical literature. Studies like Demsetz (1973) and Berger
(1995), Howard and Timothy (1999), Cockburn (2004), Praveen and (2005) and others are
reviewed in this study. Howard and Timothy (1999), in a study linking scp paradigm to
competence-based competition, looked at how the resource-based view of the firm and the theory
20
proposing six issues which should motivate future strategy research, and which can help and
Nanyang (2003) applied the s-c-p Framework to analyze the media industry in Singapore. The
study restated the constructs and premises of the s-c-p model, and the orthodox economic notions
of market performance as well as the logic that underlies the model are clarified. The paper also
Media issues such as content diversity and media concentration, which are often studied through
the s–c–p approach, were also reexamined. It further identified and addressed common
misconceptions found in using the framework to study the media industry and also expounded
Cockburn (2004) researched into the changing structure of the pharmaceutical industry in the
United States and found that rising research and development (R&D) expenditures by
pharmaceutical firms are consequence of changing industry structure, particularly the rise of the
biotechnology sector. The creation of a market for biomedical science and increased vertical
competition within the industry are likely to boost innovation and improve productivity. This can
also induce socially wasteful spending and weaken academic science within the industry. The
study asserted that with innovation increasingly dependent on financially vulnerable firms and
complex contractual arrangements, research and development investment may become more
Adhikari (2005) studied s-c-p vs. efficiency approach to carry out an empirical analysis of the
Indian Pharmaceutical Industry. The study posited that s-c-p approach in the pharmaceutical
industry is not relevant due to negligible concentration and low barrier to entry. The paper
fundamentally addressed efficiency approach to find out what the factors influencing efficiency
21
of firms in the pharmaceutical industry are. Data of all companies available in prowess database
are taken for empirical analysis. Two multivariate techniques of factor analysis and multiple
regressions were applied. The result shows that research and development as well as advertising
plays no significant role in the efficiency of the firm and thereby advocated that firms should
take another look at the return on investment in research or make it more selective than general.
Tapan (2005) looked at the relevance of the s-c-p paradigm to the Indian Industry as a whole by
elucidating the basic ideas of s-c-p theory, and reviewing studies that used the paradigm, while
also exploring its relevance to the Indian industry. They discussed in-depth the relationship
The study underscored the increasing significance of the s-c-p paradigm in the post-reform
Indian Industry. Adhikari (2005) looked at the market structure, conduct and performance
paradigm re-applied to the international tourist hotel industry. Due to the shortcomings of
previous studies to confirm the causality of the hotel industry, the paper developed a
comprehensive model, based on realistic data on hotels, which allowed the analysis of the system
through three simultaneous equations, market share, advertising, and profitability. In a sample of
360 Taiwanese international tourist hotels, three-stage least squares results indicate that:
i. Two-way causes and effects exist between the market structure and strategic behaviour;
iii. A firms’ profitability is positively, and significantly, impacted by market share, but is
affected negatively by total operating costs and capital intensity, which confirms hotel
Jiankang (2014) researched into the s-c-p analysis of biopharmaceutical industry in China. The
paper analyzed the market structure, enterprise conduct and performance of biological
22
pharmaceutical industry in China. It is suggested in the paper that the government need to speed
up the industrial restructuring, to optimize the industrial structure, to encourage the similar
Finally, since the emergence of the neo-classical study of Mason in 1939, which posited that a
direct causal link exists between the structure and performance of a firm, series of other studies
like Demsetz (1973) and Berger (1995) have refuted the argument by claiming that there exists a
causality reversal where performance can determine the structure of firms. The lack of consensus
reached by these studies has also led Adhikari (2005) to come up with efficiency approach to
This current study will lean on the study conducted by Adhikari (2005) on the performance of
pharmaceutical industries in India to determine what really drives the Nigerian pharmaceutical
industry, whether it is structure or efficiency. To this end, since studies of this sort especially as
it pertains to the pharmaceutical industry are scanty in Nigeria, this paper tries to fill this gap in
the literature. It is not only that the main contribution of the research presented in this study is
industry in Nigeria, but it also contains results that extend and complement those in existing
Project engineering is a technical support of the process of creating a new object, such as design
systems, decision optimization (choice of the best solutions) and control functions execution. For
instance, construction and project engineering provides coordination and project review, permits
23
Project engineering includes:
project engineering
For each project regulated companies should have the defined groups responsible for the projects
assigned to them, each group should have the assigned area of responsibility for making
decisions and financial issues. Also key stakeholders involved in the project and financially
After that it is necessary to establish the project engineering procedures. To do that regulated
companies should have the defined procedures that cover the intended number of projects
including the established control procedures in general and in a single project. These procedures
should define the project group structure, type of records and should include the documentation
24
3. Change control (relevant to each stage and activity);
4. Project evaluation;
5. Quality control.
Further it is necessary to evaluate project engineering. In this case regulated companies should
ensure that project objectives system (such objectives as process, product and equipment) is
defined at the early stages of the project and subsequent methods and procedures are established
for risk assessment and decisions contribution assessment to identify and mitigate risks of the
project objectives.
When defining a scope of the project engineering, regulated company should guarantee that
project groups, procedures and responsibilities correspond to its scope, modification and
contribution to the GxP regulated system. When forming a qualified project engineering staff,
regulated companies should ensure that personnel involved into project development is properly
qualified and trained and has the resources and support complied with the technical
As it was stated earlier, the main part of the project engineering activity in pharmaceutical
(project organization) should have a concerted and determined activities defined by the eagerness
When generating a project, regulated companies should have a mechanism for regular analysis of
current and future demands for the current possibilities and accessible technologies. This
information should be used to define the requirements and as a foundation for change
25
mechanism of analyzing proposed changes and methods for work scope definition (user
requirements specification).
During the project review regulated companies should ensure that the appropriate decisions, such
as risk assessment and environmental impact, are used to establish the effective project approach.
The established approach should consider the full life cycle and possible risks, for instance:
possibility of minimal cost could be non-optimal due to high operating costs or other significant
Besides that regulated companies should have means of definition of the most appropriate
project realization methods according to budget and schedule Within the limits of resource
provision for project management, regulated companies should provide the project with the
access to the adequate resources personnel, means of communication funding, offices and
systems.
Value engineering is the key aspect of project engineering as it guarantees the confidence in
reasonable investment in any activity, its evaluation and organization for optimal value
derivation. Value is defined by costs quality and scope. Meanwhile regulated company should
have defined methods of efficient decisions making relative to project execution based on the
project’s revenue capability. Within the limits of project engineering activities, regulated
companies define the investment risks and review them. To perform that review they should
adequately assess the investment risks and take into account all possible consequences and
advantages of project viability and the means of its execution. The necessity of the timely
26
References
Cockburn, I. M. (2008). ‘The Changing Structure of the Pharmaceutical Industry.’ Health Affairs
23 (1): 10–22.
Demsetz, H. (1996). ‘Industry Structure, Market Rivalry and Public Policy.’ Journal of Law and
Eurostat data (2004), Nigerian Pharmaceutical Industry Report.’ Business Monitor International,
London.
Nanyang (2003) . ‘Concentration versus Market Share: Which Determines Performance and
Why Does it Matter?’ Antitrust Bulletin 27:83–106.
Nikonov, I.A., 2012. Project Analysis and Project Controlled Drug Delivery. World Applied
Mason E. (1957). Nigeria under Structural Adjustment. Agodi, Ibadan, Nigeria: Fountain
Publishers. P 261.
Essien, A. E. (2005). A Consistent Macroeconomic Framework for the Agriculture Sector under
27
Jiankang, H. (2014). Factors Affecting Capacity Utilization Decisions in Nigeria: A Time
Olagunju, M. O. (1987): The Structural Adjustment Programme (SAP) and the Industrial Sector:
Peitzman, R. A. (1995). Risk and Return: Empirical Evidence on Market Factors in the Behavior
of Nigerian Stock Exchange Common stock prices.” Nig. J. Mgt Stud. 7(1):104-121.
Schmalensee, A. (1989). The impact of the Annulment of the June 12 1993 Election and the
28
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Preamble
This chapter explains the techniques used in collecting and analyzing the relevant data and
information for this study. The chapter specifies the research design, sampling design, population
of the study, the research instrument, method of data analysis etc. It also states the extent to
This study used the field survey method. Field survey is chosen because the study seeks to
Nigeria. The method was chosen because the study seeks to reflect the awareness of expertise
pharmaceutical industry.
The study population was the staff of Neros pharmaceutical company in Lagos State. It was
covered male and female, junior and senior staff of the company. The entire population of the
staff of the company is 220 workers (sources from one of the staff of the company).
The sample size was 100 respondents, 50 respondents for men and 50 respondents for women by
using equality measurement to determine the sample size of the respondents. The convenience
29
sampling method was used to select the respondents because of mobility nature of the duty and
Nigeria, the questionnaire was the instrument used to collect primary data in this study. The
questionnaire was five (5) point Liker scale. The questionnaires will be constructed in two
sections. Section ‘A and B’ Section ‘A’ was request for respondents’ background data such as,
gender, age group, marital status, year of experience in the company, educational qualification.
While section B of the questionnaire was request for the respondent’s views on the research
The questionnaires contained several structured questions (close ended) to be probe into
research problem, such as Strongly Agree (SA), Agree (A), Undecided (U), Disagree, and
The data collection instrument was validated by using content validity test, and the reliability of
𝑁.𝐶
Cronbah alpha: α = 𝑉 + (𝑁 - 1).𝐶
Cronbach’s alpha is a measure of internal consistency that is how closely related a set of items
30
A high value for alpha does not imply that the measure is uni-dimentional. Technically,
Reliability Statistics
Cronbach's N of Items
Alphaa
.276 7
Reliability Statistics
Cronbach's N of Items
Alpha
.161 7
Reliability Statistics
Cronbach's N of Items
Alpha
.104 7
31
4. Cronbach alpha to test Professional in Pharmaceutical Industry variable
Reliability Statistics
Cronbach's N of Items
Alpha
.229 7
According to the table 1, 2, 3 and 4, the cronbach alpha is 0.276, 0.161, 104, 0.229 respectively.
This means the alpha › 0.05
The questionnaire was valid for this study because it has been widely used in past researches in
measure the human performance and has proved to be a very reliable for the collection of data.
The main method of data analysis was carried out by using statistical packages for social
sciences (SPSS) soft-ware (Version 21.0). The study used inferential statistical tool to carry out
the conclusion of the data analysis on the hypotheses testing. The first stage of data processing
was involved the use of tables of frequency distribution percentages of the variables in the
questionnaires, while the correlation matrix was used to test the hypotheses, to show the
relationship between the variables. The correlation coefficient (r) was used to measure the nature
The few limitations that were encountered in the course of this study are:
Researchers are subject to various form of limitations, this is not an exemption. Even though the
responses of the respondent were used for purpose of research are burdened with the following
limitations such as: Respondents were not inhibited to respond freely to the questionnaire
32
because of the confidentiality of the organization to the public, respondents are not willing to use
33
References
34
CHAPTER FOUR
4.1 Introduction
This segment of the study focuses on the data presentation and analysis. The data is presented in
tabular form with the coding of the response, while the data analysis shows the frequency and
testing of hypotheses.
Retrieved
100 questionnaires were administered, 90 were retrieved, this means that 90.0% of the
questionnaires were retrieved and 10.0% of the questionnaires were unable to collect from the
respondents.
35
4.2.2 Analysis of Respondents According to Bio-Data Characteristics
Female 35 47.0
Total 90 100
Total 90 100.0
3. Marital Status Single 43 47.8
Married 47
52.2
Total 90 100.0
4. Educational O’levels/SSCE 16 17.8
Qualification
NCE/OND 21
23.3
HND/B.Sc. 31 34.4
MBA/M.Sc. 22
24.4
Total 90 100.0
5. Duration of Below 5years 10 11.1
service
6-10years 24
26.7
11-15years 22 24.4
16-20years 18
20.0
20years and Above 16 17.8
100.0
Total 90
36
N101000-150000 24 26.7
N151000Above 18
20.0
90
100.0
Source: Field Survey, 2017
Table 4.2.2 shows the demographic distribution of sampled respondents, according to the gender
distribution shows 55.30% of the respondents were male, while 47.0% of the respondents were
female.
In terms of their age distribution it shows that 45.6% of the respondents were within the age
bracket of 20-39years, 37.7% of the respondents were within 40-59years, while 16.7% were
According to their marital status distribution, it shows that 47.8% of the respondents were
respondents were in SSCE levels, 23.3% of the respondents were in NCE/OND levels, 34.4% of
the respondents were in HND/B.Sc. levels, while 24.4% of the respondents were in MBA/M.Sc.
levels.
According to distribution focusing duration of service, 11.1% of the respondents were 5year
below, 26.7% were 6-10years, 24.4% were in 11-15years, 20.0% were respondents in between
And according to the average monthly income, shows that respondents belong in the N50000
Below, it shows that 37.8% of the respondents are in N51000-N100000, while 15.6% of the
37
respondents were in N101000-150000, also 26.7% of the respondents were in N151000 and
Respondents = 90
SA A SD D total
SN Research Questions
f % f % f % f % f
38
Without engineering
expertise, there is no
5 30,0 36.7 21 23.3 100.0
productivity in 27 28 31.1 33
pharmaceutical firms in
Nigeria.
Profitability of Neros
6 firm depends on the 24.4 24.4 16 17.8 100.0
22 30 33.3 22
effectiveness of
engineering expertise.
Engineering expertise
7 enhancing the 30.0 28.9 12 13.3 100.0
27 25 27.8 26
performance of Neros
company.
Source: Field Survey, 2017
Table 4.2.3 shows the distribution sampled respondents according to research questions which
focuses on ‘Engineering Expertise in Neros’, it shows that, 27.4% of the respondents strongly
agreed on the view that there is need for the Engineering expertise in pharmaceutical firms include
Neros., 40.0% agreed, while 13.3% respondents strongly disagreed, and 15.6% disagreed on the
statement
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
39
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
The table 4.2.3 research question two also shows that, 27.8% of the respondents strongly agreed
on the view that Impact of Engineering Expertise in Pharmaceuticals industry is un-avoidable., 43.3%
agreed, while 10.0% respondents strongly disagreed, and 20.0% disagreed on the statement.
According to the research questions on the table 4.2.3, (the research variable that says
Engineering expertise in Neros), this table shows that, the number of respondents agreed on the
statement are more than those respondents who disagreed on the statement.
Respondents = 90
SA A SD D total
SN Research Questions
f % f % f % f % f
40
For some years Neros
Pharmaceutical firm
8 22 24.4 33 36.7 15 16.7 17 18.8 100.0
record tremendous
business growth in
Nigeria business
pharmaceutical
industry in Nigeria has
9 witnessed tremendous 40.0 15 16.7 100.0
28 31.1 36 12 13.3
growth in Nigeria both
technologically and
human capacity
Neros pharmaceuticals
company has met the
10 35.6 13 14.4 100.0
World health 29 32.2 32 16 17.8
organisation standard
in Nigeria
Neros pharmaceutical
11 32.2 20 22.2 8 8.9 100.0
company is one of fast 35 38.9 29
growing in Nigeria
For some years back,
the performance of
Neros pharmaceutical
12 28.9 25.6 12 13.3 100.0
firm has performed 26 29 32.2 23
impressively in
pharmaceutical
industry.
For some years now,
some pharmaceutical
13 26.7 23.3 20 22.2 100.0
company have not 24 25 27.8 21
41
industry.
Neros records less
14 30.0 28.8 12 13.3 100.0
growth in some years 27 25 27.8 26
Table 4.2.4 shows the distribution of sampled respondents according to research questions which
focuses on “Neros firm Performance”, it shows that, 24.4% of the respondents strongly agreed
on the view that for some years Neros Pharmaceutical firm record tremendous business growth
in Nigeria business, 36.7% agreed, while 16.7% respondents strongly disagreed, and 18.8%
The table 4.2.3 research question two also shows that, 31.1% of the respondents strongly agreed
on the view that pharmaceutical industry in Nigeria has witnessed tremendous growth in Nigeria
both technologically and human capacity 40.0% agreed, while 13.3% respondents strongly
The table 4.2.3 research question two also shows that, 32.2% of the respondents strongly agreed
on the view that Neros Pharmaceuticals Company has met the World health organisation
standard in Nigeria, 35.6% agreed, while 17.8% respondents strongly disagreed, and 14.4%
The table 4.2.3 research question two also shows that, 38.9% of the respondents strongly agreed
on the view that Neros pharmaceutical company is one of fast growing in Nigeria, 32.3% agreed,
while 22.2% respondents strongly disagreed, and 8.9% disagreed on the statement.
The table 4.2.3 research question two also shows that, 28.9% of the respondents strongly agreed
on the view that For some years back, the performance of Neros pharmaceutical firm has
42
performed impressively in pharmaceutical., 32.2% agreed, while 25.6% respondents strongly
The table 4.2.3 research question two also shows that, 26.7% of the respondents strongly agreed
on the view that For some years now, some pharmaceutical company have not record any growth
in pharmaceutical industry, 27.8% agreed, while 23.3% respondents strongly disagreed, and
The table 4.2.3 research question two also shows that, 30.0% of the respondents strongly agreed
on the view that Neros records less growth in some years back to this time, 27.8% agreed, while
According to the research questions on the table 4.2.3, (the research variable that the relationship
between Growth and Neros firm Performance), this table shows that, the number of respondents
agreed on the statement are more than those respondents who disagreed on the statement
Respondents = 90
SA A SD D total
SN Research Questions
f % f % f % f % f
The pharmaceuticals
company has met the 38.9 100.0
15 29 32.2 35 11 12.2 13 14.4
World health organisation
standard in Nigeria.
43
identification of market
power in
pharmaceutical
industry
Nowadays Engineers
are involved in more
18 research and 24 26.7 25 27.8 21 23.3 20 22.2 100.0
development than
before
Medical progress by
researching, developing
19 and bringing new 27 30 28 31.1 14 15.6 21 23.3 100.0
medicines that improve
health
Medical progress by
researching, developing
the globe
44
Table 4.2.5 shows the distribution of sampled respondents according to research questions which
32.2% of the respondents strongly agreed on the view that the pharmaceuticals company has met
the World health organisation standard in Nigeria, 38.9% agreed, while 12.2% respondents
The table 4.2.5 research question two also shows that, 38.9% of the respondents strongly agreed
on the view that Empirical modeling of technological changes as well as the identification of
market power in pharmaceutical industry 32.2% agreed, while 22.2% respondents strongly
The table 4.2.5 research question two also shows that, 28.9% of the respondents strongly agreed
on the view that The engineers have designed a technology known as Electronic Health Records
that enables patients to get more involved in their treatments 32.2% agreed, while 25.6%
The table 4.2.5 research question two also shows that, 26.7% of the respondents strongly agreed
on the view that Nowadays Engineers are involved in more research and development than
before, 27.8% agreed, while 23.3% respondents strongly disagreed, and 22.2 % disagreed on the
statement.
The table 4.2.5 research question two also shows that, 30.0% of the respondents strongly agreed
on the view that Medical progress by researching, developing and bringing new medicines that
improve health, 31.1% agreed, while 15.6% respondents strongly disagreed, and 23.3%
45
The table 4.2.5 research question two also shows that, 23.3% of the respondents strongly agreed on the
view that Medical progress by researching, developing and bringing quality of life for patients
around the globe, 32.2% agreed, while 23.3% respondents strongly disagreed, and 21.1% disagreed on
the statement.
Finally, the table 4.2.5 research question two also shows that, 24.1% of the respondents strongly
agreed on the view that Some local drug manufacturers are currently upgrading their facilities to
comply with WHO, 31.4% agreed, while 24.1% respondents strongly disagreed, and 20.2%
According to the research questions on the table 4.2.5, “the research variable that show the
Growth of Pharmaceutical”, this table shows that, the numbers of respondents agreed on the
statement are more than those respondents who disagreed on the statement.
industry
Respondents = 90
SA A SD D total
SN Research Questions
f % f % f % f % f
Many pharmaceutical
companies are driving
at meeting the required
22 standards by using 27 31.3 37 40.8 13 14.2 11 12.4 100.0
advanced equipment
and Expertise
Engineers.
46
Engineering Expertise
play a key roles in the
23 growth of Nigeria 34 37.9 30 32.2 18 22.2 10 8.9 100.0
pharmaceutical
industry.
betterment of the
industry as whole
Pharmaceutical
28 industry is a key asset 35 38.9 29 32.2 20 22.2 8 8.9 100.0
to global economy
47
Table 4.2.6 shows the distribution of sampled respondents according to research questions which
that, 31.3% of the respondents strongly agreed on the view that many pharmaceutical companies
are driving at meeting the required standards by using advanced equipment and Expertise
Engineers., 40.8% agreed, while 14.2% respondents strongly disagreed, and 12.4% disagreed on
the statement.
The table 4.2.6, the research question two also shows that, 37.9% of the respondents strongly
agreed on the view that engineering Expertise play a key roles in the growth of Nigeria pharmaceutical
industry. 32.2% agreed, while 22.2% respondents strongly disagreed, and 8-9% disagreed on the
statement.
The table 4.2.6 research question two also shows that, 28.9% of the respondents strongly agreed
on the view that major local drug manufacturers are driven by the engineering skilled workers.
32.2% agreed, while 25.6% respondents strongly disagreed, and 13.3% disagreed on the
statement.
The table 4.2.5 research question two also shows that, 26.7% of the respondents strongly agreed
on the view that major local drug manufacturers are driven by the engineering skilled workers,
27.8% agreed, while 23.3% respondents strongly disagreed, and 22.2 % disagreed on the
statement.
The table 4.2.6 research question two also shows that, 26.7% of the respondents strongly agreed
on the view that to achieve great feats by the pharmaceutical firms, engineering expertise
engaged in great impact in their growth., 27.8% agreed, while 23.3% respondents strongly
48
The table 4.2.6 research question two also shows that, 23.3% of the respondents strongly agreed
on the view that benefit for engineers and professionals in the industry increase their
performance for the betterment of the industry as whole, 32.2% agreed, while 23.3% respondents
The table 4.2.6 research question two also shows that, 38.9% of the respondents strongly agreed
on the view that Pharmaceutical industry is a key asset to global economy, 32.2% agreed, while
Finally, According to the research questions on the table 4.2.6, (the research variable that shows
the Professionals in pharmaceutical industry), this table shows that, the number of respondents
agreed on the statement are more than those respondents who disagreed on the statement.
In testing the hypothesis formulated in chapter one of these studies, the data collected was
subjected to a statistical test, Product Pearson Moment correlation method test using SPSS
software (Version 21.0) to find if there is any statistical relationship between the variables in
Hypothesis One
49
Table 4.3.1 Correlations Matrix for Hypothesis one (Tested by research questions base on
in Neros Performance
Neros
Sig. (2-tailed) .000
N 100 100
100 100
N
Interpretation: Table 4.3.1 shows the Pearson correlation matrix result, indicating relationship
between involving in Engineering Expertise in Neros and Growth of Neros Firm Performance at
.092. When “г” is -1 there is perfect negative correlation between the statements, when +1 there
is perfect positive between and if “0” it shows significant relationship between the statements,
but on this study the Pearson “г” is 0.092. On this statement it shows that, there is relationship
50
4.3.2 Hypotheses Two
Table 4.3.2 Correlations Matrix for Hypothesis two (Tested by research questions base on
variables for Engineering Expertise in Neros and Engineering Expertise and Growth of
Pharmaceutical)
Professional in Growth of
pharmaceutical Pharmaceutical
industry industry
pharmaceutical
Sig. (2-tailed) .000
industry
N 90 100 100
Pharmaceutical
Sig. (2-tailed) .000
N 90 100 100
51
Interpretation: Table 4.3.2 it also shows the Pearson correlation matrix result, indicating
relationship between Engineering Expertise in Neros and Engineering Expertise and Growth of
Pharmaceutical at .151. When “г” is -1 there is perfect negative correlation between the
statements, when +1 there is perfect positive between and if “0” it shows significant relationship
between the statements, but on this study the Pearson “г” is 0.151. On this statement it shows
that, there is significant relationship between the professionals in pharmaceutical industry and
engineering expertise
H0: The growth of Neros pharmaceutical firm does not depend on engineering expertise.
Table 4.3.3 Correlations Matrix for Hypothesis two (Tested by research questions base on
Engineering Growth of
Expertise in Pharmaceutical
Neros Industry
Expertise in Neros
Sig. (2-tailed) .000
N 90 90
52
Pharmaceutical Sig. (2-tailed) .000
Industry
N 100 100
Interpretation: Table 4.3.3 It also shows the Pearson correlation matrix result, indicating
relationship between Growth and Neros Firm Performance and Engineering Expertise and
Growth of Pharmaceutical at .076. When “г” is -1 there is perfect negative correlation between
the statements, when +1 there is perfect positive between and if “0” it shows significant
relationship between the statements, but on this study the Pearson “г” is 0.076. On this statement
Table 4.3.4 Combine Correlation Matrix for all the variables in the research questions
53
Pearson .092 1 .091 .266*
Neros’s firm Correlation
Performance Sig. (2-tailed) .391 .392 .011
N 90 90 90 90
Pearson .076 .091 1 .153
Growth of Correlation
Pharmaceutical Industry Sig. (2-tailed) .474 .392 .151
N 90 90 90 90
Pearson .011 .266* .153 1
Professional in Correlation
Pharmaceutical Industry Sig. (2-tailed) .915 .011 .151
N 90 90 90 90
*. Correlation is significant at the 0.05 level (2-tailed).
Output of Statistical Package of Social Science (SPSS)
The table 4.3.4 has combine correlation matrix of the research statements (variables) in a box, to
show the Pearson correlation on each variable as it related to each other in a tabular form. Then
the matrix shows the “Engineering expertise in Neros and Neros’s firm performance” shows the
shows .076, while “Engineering expertise and professional in pharmaceutical industry” shows
.011. These means that there is significant positive relationship between the professionals in
pharmaceutical industry and engineering expertise, also there is significant relationship between
the professionals in pharmaceutical industry and engineering expertise, and the growth of Neros
54
Table 4.3.5. Regression Analysis between dependent variable (Growth in pharmaceutical
industry and independent variable engineering expertise in Neros, Neros’s firm performance and
According to table 4.3.5, the Regression output of the SPSS shows that there is no negative
relationship between the growth in pharmaceutical industry and Engineering expertise in Neros,
relationship.
55
The presentation and analysis of data in this chapter provides different information on the impact
Nigeria. Various questions were asked in chapter four of this study in line with the research
question and considering the research study which focuses on the test of hypothesis one, two and
three. It was tested using Correlation Matrix technique and revealed that there is relationship
between engineering expertise and the growth of pharmaceutical industry in Nigeria, this
findings support the view of Kohn and Lembeck (2007), investigated and concluded that there is
relationship between engineering expertise and the growth of pharmaceutical industry in Nigeria.
Also test of hypothesis two shows that there is significant relationship between the professionals
in pharmaceutical industry and engineering expertise. The findings also corroborate the study of
Robin (2006) and Fapohunda (2012) they opined that, there is relationship between the
While the test of hypothesis three shows that the growths of Neros pharmaceutical firms depend
on engineering expertise. The findings also corroborate the study of Robin (2006) and
Fapohunda (2012) they opined that, the growth of Neros pharmaceutical firms depend on
engineering expertise.
In conclusion, findings showed that majority of employee in Neros pharmaceutical firm in Lagos
State favour the impact of engineering expertise in the Growth of Pharmaceutical industry in
Nigeria.
56
CHAPTER FIVE
5.1 Introduction
This research focused on the impact of engineering expertise in the Growth of Pharmaceutical
industry in Nigeria.
This final chapter is mainly designed to highlight the summary of findings, conclusion and
recommendations; the first chapter was devoted to the introductory part of the study while the
second chapter discussed extensively the literature review on the subject matter. Chapter three
discussed the research design and methodology, as well as the study population and the sample
size adopted. Finally chapter four showed the analysis and presentation of data, from the
questionnaires that were administered by the researcher and in addition presented the result of
the hypothesis postulated in the first chapter. Chapter five deal with the summary, conclusions,
recommendations and suggestions for further studies based on the outcome of findings from the
study.
This final chapter is mainly designed to highlight the summary of findings, conclusion and
recommendations;
57
From the data analysis and results in the preceding above, the findings are as follows:
the study made findings that majority of the respondents were of the view that
Engineering Expertise and Growth of Pharmaceutical, the study made findings that
3. In addition focusing between the Growth and Neros Firm Performance and
majority of the respondents were of the view that the growth of Neros
5.2 Conclusion
The rationale of this study was to examine the impact of engineering expertise in the Growth of
Pharmaceutical industry in Nigeria with specific considerations to selected the employee of Neros
Pharmaceutical firm Ltd, based on the results of the hypotheses tested the study concluded that
there is significant correlation between Engineering Expertise in Neros and Neros Firm Performance,
and also there is relationship between the Engineering Expertise in Neros and Growth of
Pharmaceutical, this states that there is relationship between engineering expertise and the growth
5.3 Recommendation
58
In light of this conclusion, the following were recommended for the Managers and employee of
relationship between Engineering Expertise in Neros and Growth and Neros Firm
growth since the study has shown the relevance of Engineering expertise to the
industry in Nigeria.
More research works can be devoted to this study through the use of other related textbooks and
journals. A different statistical tool may also be used in testing hypothesis. The topic will also
59
Bibliography
Brozen, Y. (2007). Concentration, Mergers and Public Policy. New York: Macmillan.
Business Day. 2014. ‘Pharmaceuticals in Aggressive Expansion for Global Market Play.’
2 September.
Cockburn, I. M. (2008). ‘The Changing Structure of the Pharmaceutical Industry.’ Health Affairs
23 (1): 10–22.
Demsetz, H. (1996). ‘Industry Structure, Market Rivalry and Public Policy.’ Journal of Law and
60
Eurostat data (2004), Nigerian Pharmaceutical Industry Report.’ Business Monitor International,
London.
Essien, A. E. (2005). A Consistent Macroeconomic Framework for the Agriculture Sector under
Gale, B. T., and Branch, B. S. (2000). ‘Concentration versus Market Share: Which Determines
Mason E. (1957). Nigeria under Structural Adjustment. Agodi, Ibadan, Nigeria: Fountain
Publishers. P 261.
Nanyang (2003) . ‘Concentration versus Market Share: Which Determines Performance and
Why Does it Matter?’ Antitrust Bulletin 27:83–106.
Nikonov, I.A., 2012. Project Analysis and Project Controlled Drug Delivery. World Applied
Olagunju, M. O. (1987): The Structural Adjustment Programme (SAP) and the Industrial Sector:
Peitzman, R. A. (1995). Risk and Return: Empirical Evidence on Market Factors in the Behavior
of Nigerian Stock Exchange Common stock prices.” Nig. J. Mgt Stud. 7(1):104-121.
Schmalensee, A. (1989). The impact of the Annulment of the June 12 1993 Election and the
61
Tapan, O. O. (2005). “Determinant of Manufacturing Capacity Utilization in Nigeria 1970-
62
Appendix
UNIVERSITY OF LAGOS
MBA, POST GRADUATE STUDENT OF
DEPARTMENT OF PHAMACY
Questionnaire
Dear Respondent,
This questionnaire is part of a research project to assess the impact of engineering expertise in
the Growth of Pharmaceutical industry in Nigeria, being carried out as part of the requirement
The research questionnaire is strictly for academic purpose and all information collected will be
INSTRUCTION: Please tick [ ] as appropriate the box for your response in this part.
HND/BSC [ ] others [ ]
63
21 yrs and above [ ]
Please tick (X) as appropriate, the extent to which you agree with the questions below.
Key: SA: Strongly Agree, A: Agree, U: Undecided D: Disagree, SD: Strongly Disagree
Assess the impact of engineering expertise in the Growth of Pharmaceutical industry in Nigeria
S/N VARIABLES SA A SD D U
5 4 3 2 1
Engineering Expertise in Neros
64
9 pharmaceutical industry in Nigeria has witnessed tremendous
growth in Nigeria both technologically and human capacity
10 Neros pharmaceuticals company has met the World health
organization standard in Nigeria
11 Neros pharmaceutical company is one of fastest growing firm in
Nigeria
12 For some years back, the performance of Neros pharmaceutical
firm has performed impressively in pharmaceutical industry.
13 For some years now, some pharmaceutical company have not
record any growth in pharmaceutical industry.
14 Neros records less growth in some years back to this time.
65
22 Many pharmaceutical companies are driving at meeting the
required standards by using advanced equipment and Expertise
Engineers.
66