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Governance forms of the pharmaceutical supply chain of Bogota, Colombia

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  • García-Cáceres, Rafael Guillermo
  • Torres-Valdivieso, Sergio
  • del Razo-Hernandez, Adolfo

Abstract

The present work analyzes the relation between governance forms and supply chain performance as mediated by transaction cost determinants. Based on the Transaction Cost Theory, the governance forms of the pharmaceutical supply chain of the city of Bogota (Colombia) are analyzed through their capability to minimize transaction costs at each link of the supply chain. The object of study was a sample of those companies dealing with the national Compulsory Health Plan, ranging from molecule suppliers to health service providers. This assessment was carried out by means of an innovative mathematical technique named Stochastic Multi-criteria Acceptability Analysis – Matching. The results show a significant number of anomalies in the selection of the governance forms by the companies, as they have made organizational decisions that do not facilitate the reduction of their transaction costs. Finally, and based upon the analysis, the reasons that explain the situation are detailed.

Suggested Citation

  • García-Cáceres, Rafael Guillermo & Torres-Valdivieso, Sergio & del Razo-Hernandez, Adolfo, 2024. "Governance forms of the pharmaceutical supply chain of Bogota, Colombia," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:soceps:v:92:y:2024:i:c:s0038012124000132
    DOI: 10.1016/j.seps.2024.101814
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    References listed on IDEAS

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    More about this item

    Keywords

    D810 – multicriteria decision making; L000; industrial organization; D230; transaction costs; SMAA-M; Applications to the health sector; Decision theory;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L00 - Industrial Organization - - General - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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