Abstract
Digital transformation represents a comprehensive strategic change and has recently garnered significant attention and exploration across various industries, including the pharmaceutical sector. However, through an extensive literature review and corporate interviews, we found that pharmaceutical firms still predominantly adopt a product-oriented and technology-driven approach in their digital transformation processes. Despite varying degrees of digital transformation efforts, the lack of customer demand data collection, analysis, and perception has led to low success rates in product development. Even when development is successful, products may face sluggish sales, resulting in low customer satisfaction and loyalty. Consequently, the impact of digital transformation on overall corporate performance remains highly uncertain. This raises a critical question: Is such uncertainty associated with insufficient attention to customer orientation during digital transformation? Furthermore, how does customer orientation influence the performance outcomes of digital transformation? These questions warrant further academic and practical investigation.To investigate the impact of customer-oriented digital transformation on the performance of pharmaceutical firms, this study adopts a two-study design combining qualitative and quantitative methods. Study 1 employs a qualitative approach to refine and define the research questions and hypotheses. Specifically, open-ended questionnaires were designed, and interviews with firms were conducted alongside the collection of unstructured data. This exploratory study examined the current digital transformation pathways and performance implications within pharmaceutical companies. It identified insufficient execution of digital initiatives and shortcomings in process management. More importantly, it revealed a lack of customer orientation in the digital transformation process, which was subsequently established as the core issue and central hypothesis of Study 2. Study 2 adopts a quantitative research design to empirically test the hypothesized relationships. This study consists of two sub-studies: Sub-study 1, Questionnaire Design and Pilot Survey, and Sub-study 2, Empirical Analysis and Validation. In Sub-study 1, based on the refined research questions, validated scales from authoritative literature were adapted to construct measurable indicators of theoretical constructs. A closed-ended questionnaire was then designed. A pilot study was conducted by distributing 21 questionnaires, and insights from the pilot data were used to improve the questionnaire’s quality and clarity. In Sub-study 2, the finalized questionnaire was distributed online, and a total of 450 responses were collected. After applying attention-check filters, 325 valid responses were retained. Reliability and validity tests were conducted, followed by regression analysis to examine the hypothesized effects.
Findings reveal that customer-oriented digital transformation significantly enhances firm performance in the pharmaceutical industry. Among the two dimensions, customer data collection plays a more substantial positive role. The positive effect of customer data utilization is partially supported in terms of revenue outcomes. Competitive intensity exhibits a significant negative moderating effect, while the moderating role of dynamic capabilities was not supported.
This study contributes to digital transformation research by integrating the customer orientation perspective, enriching our understanding of the relationship between digital transformation and firm performance. Practically, the study bridges the gap between digital transformation and customer orientation in existing research and lays a foundation for promoting digital transformation across broader industries. Theoretically, by combining perspectives on digital transformation and customer orientation, this study introduces the concept and measurement of “customer-oriented digital transformation,” thereby overcoming the limitations of both streams and addressing real-world challenges faced by firms in improving performance.
| Date of Award | 5 Sept 2025 |
|---|---|
| Original language | Chinese (Traditional) |
| Awarding Institution |
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| Supervisor | Yuanxu LI (External Supervisor) & Xu ZHENG (Supervisor) |
Keywords
- Pharmaceutical firms
- Strategic change
- Digital transformation
- Customer orientation
- Firm performance
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