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Theophilus Ehidiamen Oamen, Analysis of the influence of perceived self-efficacy on organizational performance among pharmaceutical managers: a structural equation study, Journal of Pharmaceutical Health Services Research, Volume 13, Issue 3, September 2022, Pages 215–223, https://doi.org/10.1093/jphsr/rmac029
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Abstract
To investigate the influence of perceived self-efficacy on organizational performance among operational, product and strategic managers in the pharmaceutical marketing industry.
A cross-sectional study with a literature-based questionnaire administered to 241 managers proportioned across operational, product and strategic managerial roles using stratified random sampling. Structural equation modeling techniques in the analysis of moment structures software were used to examine causal relations between predictor and outcome variables. Study hypotheses were tested using inferential statistical measures with a P-value of < 0.05.
A large number of respondents were operational sales managers (n = 138, 57.3%), followed by strategic managers (n = 64, 25.6%), and the least was product managers (n = 39, 16.2%). The measurement models of self-efficacy, organizational performance constructs and structural models had acceptable measures of fit. Three first-order constructs were derived from the self-efficacy construct namely: self-adaptability (regression coefficient, β = 0.237, P < 0.025), self-efficiency (β = 0.574, P < 0.001), and self-creativity (β = 0.649, P < 0.003). Structural equation modelling revealed a significant positive effect of perceived self-efficacy on organizational performance (R2 = 0.65, β = 0.651, P < 0.003). Simple plot analysis revealed lower performance scores at a moderate level of self-efficacy with operational sales managers compared to strategic and product managers. Multigroup analysis revealed no confounding effect of gender and type of firm on the hypothesized relationship (P > 0.05).
This study contributed another dimension to extant research on the relationship between perceived self-efficacy and performance among pharmaceutical managers. The study suggests targeted management training and collaborative learning for managers to improve their level of self-efficacy. Focal and routine training to enhance work-based competencies, professional development and problem-solving skills of pharmaceutical managers are advocated.
Introduction
In pharmaceutical marketing companies, organizational success is anchored on the effectiveness of the management team, at all levels of operations. Therefore, it is pertinent for individual managers to have the right set of behavioural skills critical for achieving organizational goals.[1–3] The skillsets encompass administrative, operational, decision-making, leadership and communication competencies among others.[1] The management structure in pharmaceutical companies typically assumes a three-level structure: Operational managers, e.g. first-line sales and field sales managers, involved in supervising and coordinating field sales staff in daily interactions with healthcare practitioners and supply chain engagements at designated regions or territories. Product managers are saddled with the responsibility of developing knowledge and designing product-based strategies to enhance the marketability of assigned pharmaceutical products. Strategic managers such as Heads of Business Units and Marketing heads are tasked with the responsibility of planning, conceptualizing and developing actions or strategies that are in line with set organizational goals.[1–3] Among managers particularly in task-intensive environments like pharmaceutical marketing, key constructs such as self-efficacy and perceived organizational performance are critical success factors that should be studied and understood. Self-efficacy is a behavioural construct that describes an individual’s internal or innate belief in his or her capability to perform a task and role both effectively and efficiently as described by Albert Bandura (1993: 2001; 2006).[4–6] Self-efficacy is a highly researched construct in many disciplines especially management psychology where it is considered under social cognitive theory.[5] In an organizational context, it is composed of key elements such as self-belief, confidence in one’s ability to perform tasks, self-proficiency and self-adaptability to challenging situations and tasks.[5] A high level of self-efficacy has been associated with higher performance, higher management capacity and increased work competence. This holds as well for lowered capacity when there are lowered levels of self-efficacy.[6–8] Evaluating organizational performance is a key component for determining the success of the strategies and action plans of managers in the pharmaceutical industry. Perceived organizational performance in the management palace refers to the manager’s assessment of his or her overall impact and contribution to the success of the organization.[9, 10] Although a fairly researched topic, there are conflicting positions or outcomes of studies on the relationship between self-efficacy and performance among employees in organizations.[8, 11] Whilst some agreed on a positive relationship between both variables,[11] others revealed a negative relationship.[12] Some studies showed varied impact levels depending on the level of work and conditions.[13] In addition, Tokarski et al (2016) did not establish any clear relationship or dependencies between performance and level of management.[3] Therefore, this study seeks to investigate: the relationship between perceived self-efficacy and organizational performance among pharmaceutical managers based on their managerial roles. To the best of our knowledge, there is limited evidence-based research in the field of pharmaceutical sales management which examined the domains of self-efficacy influencing organizational performance among managers along operational, product and strategic levels of management.
Relevance of the study
Although there is a plethora of research evidence on the subject of self-efficacy and organizational performance among employees in organizations, this study provides another perspective to the applied research literature in this area as it provided more information on the specific relationship between self-efficacy and perceived organizational performance of pharmaceutical managers using structural equation modelling.
Study hypothesis
The study hypotheses were stated as follows:
H1: There is a positive and significant influence of perceived self-efficacy on the perceived organizational performance of pharmaceutical managers (direct effect)
H2: There are group differences (based on gender and type of firm respectively) among pharmaceutical managers on the hypothesized relationship between self-efficacy and organizational performance (multigroup analysis)
Methods
Study design and population
A cross-sectional survey that used a structured self-administered questionnaire administered through an online Google forms platform to pharmaceutical managers who occupy functional managerial roles in pharmaceutical sales and marketing management. Data were collected over 3 months from September to November 2021, in Nigeria. Typically, the majority of manufacturing and pharmaceutical companies are headquartered in the commercial centre of Nigeria, Lagos, as considered in some empirical studies.[14, 15] Hence, an overwhelming majority of strategic, product and operational sales managers are located in Lagos. However, operational sales managers are distributed based on a geopolitical or regional basis (southwest, southeast, northeast, north-central, northwest and south-south) in Nigeria.[16]
Sample size determination
The sample consisted of 241 respondents randomly selected out of a targeted population of 300 managers from 50 purposively selected multinational and indigenous pharmaceutical companies in Nigeria. The minimum sample size for the study was set at 200, which is the minimum acceptable number for a study involving structural equation modelling. Hence, adequate for a study with two latent variables (perceived self-efficacy and perceived organizational performance) consisting of a total of 12 items.[17–19]
Sampling method
A stratified random sampling method was adopted to obtain a representative sample of the management roles prevalent in the industry. This was proportioned according to three strata representing the functional roles of participants; strategic managers in strata 1, product managers in strata 2 and operational sales managers in strata 3. Thereafter, each stratum was randomized to obtain sample participants. The sampling plan was based on the premise that operational managers have located across six geopolitical zones or regions in Nigeria, and strategic and product managers are counted as 1 per 4 operational managers.[20]
Ethical approval and consent to participate
Ethical approval was obtained from the department of research and statistics, Ogun state Ministry of Health. The approval number is HPRS/381/416 dated 23 November 2021. Informed consent was also obtained from respondents by providing unique identifiers before answering the questionnaire.
Measures
Perceived organizational performance (POP)
Perceived organizational performance (POP) measures were developed from relevant literature involving the construct as it affects managers in organizations[9–12] It was evaluated based on respondents’ perceived impact level achieved in the organization. It was rated on three (3) levels on an ordinal scale of 1, 3 and 5: where 1 = low impact, 3 = moderate impact and 5 = high impact, to the following five questions: (a) my work has improved sales output [POP1]; (b) my work has influenced policy changes significantly [POP2]; (c) my work improves my organization’s productivity significantly [POP3]; (d) my work improves my subordinates’ productivity significantly [POP4]; and (e) my overall leadership and management style has benefited my company significantly [POP5].[9, 10]
Perceived self-efficacy (PSE)
Perceived self-efficacy (PSE) was developed from seven questions on a 3-point Likert scale, to rate respondents’ perceived level of self-efficacy across three distinct measurement levels, where: low-l, moderate-3 and high-5. Seven (7) item questions were developed from attributes extracted from extant literature such as (a) I am very effective on my Job [PSE1]: (b) I am very efficient on my job [PSE2]: (c) I take timely actions and decisions [PSE3]: (d) I always proactively address issues [PSE4]: (e) I am not limited by the unfavourable work environment, policies and limited resources to work [PSE5]: (f) I adopt creative, innovative methods to solve work-related problems [PSE6], and (g) I am very adaptable [PSE7].[6, 21]
Managerial role
The management role variable was operationalized into the operational, product and strategic management roles. Variables were coded in SPSS as; operational managers coded as 1, product managers coded as 2 and strategic managers coded as 3, respectively.
Reliability and validity of research instrument
The internal reliability of the questionnaire was determined by using the test–retest reliability method. The questionnaire was administered to 10 purposively selected managers over two-time points: T1 and T2 (2 weeks apart). The scores obtained were correlated to obtain a Cronbach α coefficient value of 0.851, which falls within the acceptable range. Face and content validity were obtained by subjecting questionnaire items to screening for relevance, consistency and applicability by a focal group of experts and industry managers.
Structure of research instrument
The pretested survey instrument comprised of two main parts. Part 1 contained demographic characteristics of respondents such as age, gender, educational qualification, type of firm and managerial role. Others include the territory of coverage, years of experience in management and the pharmaceutical industry, span of control and annual salary. Part 2 comprised of Likert scale questions to measure perceived self-efficacy and organizational performance constructs.
Data collection procedures
The structured questionnaires were administered using an online google forms platform to the three strata of pharmaceutical managers (operational, product and strategic) using random sampling. Informed consent was obtained from respondents before proceeding to fill out the questionnaire. The basis of the study was briefly introduced to the respondents before filling out the questionnaire. The average time to fill the questionnaire was 4 min (range between 3 and 5 min).
Data analysis
Data were analysed using IBM SPSS version 25 and Analysis of Moment Structures (AMOS) version 24. AMOS was used to evaluate both the measurement and structural models of focal constructs of perceived self-efficacy (independent variable), and perceived organizational performance (dependent variable), to ascertain model fit and quality. The maximum likelihood method was the estimation method adopted in the path analysis. Multigroup analysis in AMOS was used to explore group differences in the relationship between perceived self-efficacy and perceived organizational performance. Study hypotheses were tested for statistical significance at P < 0.05.
Perceived self-efficacy measures
Likert scale responses to self-efficacy questions were operationalized into three measurement levels namely; low (1.0–1.67), moderate (1.68–3.67) and high (3.68–5.00) obtained by dividing the scale width by 4 (5-1) by the number of items n = 3, to give an interval of 0.67. This analytical approach has been adopted in a previous study.[22]
Results
Response rate and demographics of study variables
The response rate was 80.3% (N = 241) out of 300 online forms distributed. The demographic profile of respondents showed that management roles in the pharmaceutical industry are primarily men-dominated (n = 171, 71%) compared to women (n = 70, 29%). Pharmacists were 102 (42.4%) and non-pharmacists, 139 (57.6%). A large number of respondents work with privately owned companies (147, 61%) while 94 (39%) work with multinational pharmaceutical companies. Age-wise, a majority of respondents 58.1% (n = 140) are aged between 30 and 40 years, and 77 (32%) are between 41 and 51 years. Based on managerial roles, a majority were operational sales managers (n = 138, 57.3%), followed by strategic managers (n = 64, 25.6%), and the least were product managers (n = 39, 16.2%) as shown in Table 1.
Characteristics . | Number (N) . | Percentage (%) . |
---|---|---|
Gender | ||
Men | 171 | 71.0 |
Women | 70 | 29.0 |
Age | ||
Less than 30 years | 10 | 4.1 |
31–40 years | 140 | 58.1 |
41–50 years | 77 | 32.0 |
Greater than 50 years | 14 | 5.8 |
Educational qualification | ||
Pharmacist | 102 | 42.4 |
Non-pharmacist | 139 | 57.6 |
Type of firm | ||
Privately owned | 147 | 61.0 |
Multinational | 94 | 39.0 |
Managerial role | ||
Strategic | 64 | 25.6 |
Product | 39 | 16.2 |
Operational sales | 138 | 57.3 |
Territory of coverage | ||
North | 38 | 15.8 |
East | 11 | 4.6 |
West | 94 | 39.0 |
South | 19 | 7.9 |
National | 79 | 32,8 |
Years of experience in pharmaceutical management (Yrs.) | ||
Less than 5 years | 100 | 41.5 |
5–10 years | 79 | 32.8 |
10–15 years | 45 | 18.7 |
Greater than 15 years | 17 | 7.1 |
Years of experience in the pharmaceutical Industry (Yrs.) | ||
Less than 5 years | 18 | 7.5 |
6–10 | 104 | 43.2 |
11–15 | 76 | 31.5 |
15–20 | 31 | 12.9 |
Greater than 20 | 12 | 50.0 |
Span of control | ||
Less than 5 | 50 | 20.7 |
5–10 | 102 | 42.3 |
11–15 | 20 | 8.3 |
15–20 | 22 | 9.1 |
Greater than 20 | 47 | 19.5 |
Annual salary (USD$) | ||
2439–7317 | 82 | 34.0 |
7317–12 195 | 94 | 39.0 |
12 195–17 073 | 28 | 11.6 |
17 073–21 951 | 18 | 7.5 |
Greater than 21 951 | 19 | 7.9 |
Total | 241 | 100 |
Characteristics . | Number (N) . | Percentage (%) . |
---|---|---|
Gender | ||
Men | 171 | 71.0 |
Women | 70 | 29.0 |
Age | ||
Less than 30 years | 10 | 4.1 |
31–40 years | 140 | 58.1 |
41–50 years | 77 | 32.0 |
Greater than 50 years | 14 | 5.8 |
Educational qualification | ||
Pharmacist | 102 | 42.4 |
Non-pharmacist | 139 | 57.6 |
Type of firm | ||
Privately owned | 147 | 61.0 |
Multinational | 94 | 39.0 |
Managerial role | ||
Strategic | 64 | 25.6 |
Product | 39 | 16.2 |
Operational sales | 138 | 57.3 |
Territory of coverage | ||
North | 38 | 15.8 |
East | 11 | 4.6 |
West | 94 | 39.0 |
South | 19 | 7.9 |
National | 79 | 32,8 |
Years of experience in pharmaceutical management (Yrs.) | ||
Less than 5 years | 100 | 41.5 |
5–10 years | 79 | 32.8 |
10–15 years | 45 | 18.7 |
Greater than 15 years | 17 | 7.1 |
Years of experience in the pharmaceutical Industry (Yrs.) | ||
Less than 5 years | 18 | 7.5 |
6–10 | 104 | 43.2 |
11–15 | 76 | 31.5 |
15–20 | 31 | 12.9 |
Greater than 20 | 12 | 50.0 |
Span of control | ||
Less than 5 | 50 | 20.7 |
5–10 | 102 | 42.3 |
11–15 | 20 | 8.3 |
15–20 | 22 | 9.1 |
Greater than 20 | 47 | 19.5 |
Annual salary (USD$) | ||
2439–7317 | 82 | 34.0 |
7317–12 195 | 94 | 39.0 |
12 195–17 073 | 28 | 11.6 |
17 073–21 951 | 18 | 7.5 |
Greater than 21 951 | 19 | 7.9 |
Total | 241 | 100 |
Note: 1 USD$ is equivalent to 410 Nigerian naira.
Characteristics . | Number (N) . | Percentage (%) . |
---|---|---|
Gender | ||
Men | 171 | 71.0 |
Women | 70 | 29.0 |
Age | ||
Less than 30 years | 10 | 4.1 |
31–40 years | 140 | 58.1 |
41–50 years | 77 | 32.0 |
Greater than 50 years | 14 | 5.8 |
Educational qualification | ||
Pharmacist | 102 | 42.4 |
Non-pharmacist | 139 | 57.6 |
Type of firm | ||
Privately owned | 147 | 61.0 |
Multinational | 94 | 39.0 |
Managerial role | ||
Strategic | 64 | 25.6 |
Product | 39 | 16.2 |
Operational sales | 138 | 57.3 |
Territory of coverage | ||
North | 38 | 15.8 |
East | 11 | 4.6 |
West | 94 | 39.0 |
South | 19 | 7.9 |
National | 79 | 32,8 |
Years of experience in pharmaceutical management (Yrs.) | ||
Less than 5 years | 100 | 41.5 |
5–10 years | 79 | 32.8 |
10–15 years | 45 | 18.7 |
Greater than 15 years | 17 | 7.1 |
Years of experience in the pharmaceutical Industry (Yrs.) | ||
Less than 5 years | 18 | 7.5 |
6–10 | 104 | 43.2 |
11–15 | 76 | 31.5 |
15–20 | 31 | 12.9 |
Greater than 20 | 12 | 50.0 |
Span of control | ||
Less than 5 | 50 | 20.7 |
5–10 | 102 | 42.3 |
11–15 | 20 | 8.3 |
15–20 | 22 | 9.1 |
Greater than 20 | 47 | 19.5 |
Annual salary (USD$) | ||
2439–7317 | 82 | 34.0 |
7317–12 195 | 94 | 39.0 |
12 195–17 073 | 28 | 11.6 |
17 073–21 951 | 18 | 7.5 |
Greater than 21 951 | 19 | 7.9 |
Total | 241 | 100 |
Characteristics . | Number (N) . | Percentage (%) . |
---|---|---|
Gender | ||
Men | 171 | 71.0 |
Women | 70 | 29.0 |
Age | ||
Less than 30 years | 10 | 4.1 |
31–40 years | 140 | 58.1 |
41–50 years | 77 | 32.0 |
Greater than 50 years | 14 | 5.8 |
Educational qualification | ||
Pharmacist | 102 | 42.4 |
Non-pharmacist | 139 | 57.6 |
Type of firm | ||
Privately owned | 147 | 61.0 |
Multinational | 94 | 39.0 |
Managerial role | ||
Strategic | 64 | 25.6 |
Product | 39 | 16.2 |
Operational sales | 138 | 57.3 |
Territory of coverage | ||
North | 38 | 15.8 |
East | 11 | 4.6 |
West | 94 | 39.0 |
South | 19 | 7.9 |
National | 79 | 32,8 |
Years of experience in pharmaceutical management (Yrs.) | ||
Less than 5 years | 100 | 41.5 |
5–10 years | 79 | 32.8 |
10–15 years | 45 | 18.7 |
Greater than 15 years | 17 | 7.1 |
Years of experience in the pharmaceutical Industry (Yrs.) | ||
Less than 5 years | 18 | 7.5 |
6–10 | 104 | 43.2 |
11–15 | 76 | 31.5 |
15–20 | 31 | 12.9 |
Greater than 20 | 12 | 50.0 |
Span of control | ||
Less than 5 | 50 | 20.7 |
5–10 | 102 | 42.3 |
11–15 | 20 | 8.3 |
15–20 | 22 | 9.1 |
Greater than 20 | 47 | 19.5 |
Annual salary (USD$) | ||
2439–7317 | 82 | 34.0 |
7317–12 195 | 94 | 39.0 |
12 195–17 073 | 28 | 11.6 |
17 073–21 951 | 18 | 7.5 |
Greater than 21 951 | 19 | 7.9 |
Total | 241 | 100 |
Note: 1 USD$ is equivalent to 410 Nigerian naira.
Table 2 shows the Cronbach α coefficients of the main study constructs. The results showed that PSE had a coefficient of 0.619 and POP had a value of 0.701, respectively. They fall within the acceptable range of 0.6–0.7 to confirm the internal reliability of the data.[23]
Main constructs . | Number of items . | Mean . | Standard deviation . | Threshold . | Results . | Inference . |
---|---|---|---|---|---|---|
Self-efficacy | 7 | 4.440 | 0.881 | ≥0.6–0.7 | 0.619 | Supported |
Organizational performance | 5 | 4.528 | 0.827 | ≥0.6–0.8 | 0.701 | Supported |
Main constructs . | Number of items . | Mean . | Standard deviation . | Threshold . | Results . | Inference . |
---|---|---|---|---|---|---|
Self-efficacy | 7 | 4.440 | 0.881 | ≥0.6–0.7 | 0.619 | Supported |
Organizational performance | 5 | 4.528 | 0.827 | ≥0.6–0.8 | 0.701 | Supported |
Note: SD = standard deviation.
Main constructs . | Number of items . | Mean . | Standard deviation . | Threshold . | Results . | Inference . |
---|---|---|---|---|---|---|
Self-efficacy | 7 | 4.440 | 0.881 | ≥0.6–0.7 | 0.619 | Supported |
Organizational performance | 5 | 4.528 | 0.827 | ≥0.6–0.8 | 0.701 | Supported |
Main constructs . | Number of items . | Mean . | Standard deviation . | Threshold . | Results . | Inference . |
---|---|---|---|---|---|---|
Self-efficacy | 7 | 4.440 | 0.881 | ≥0.6–0.7 | 0.619 | Supported |
Organizational performance | 5 | 4.528 | 0.827 | ≥0.6–0.8 | 0.701 | Supported |
Note: SD = standard deviation.
Table 3 shows the output of measures of fit of the three models evaluated: PSE construct labelled A, POP construct labelled B and the final combined structural model labelled C (equals A + B combined). Results revealed that models A, B and C fulfilled the measures of fit indices and hence were acceptable for use for further statistical analysis.
Measures . | . | Threshold . | Computed values . | Inference . | ||
---|---|---|---|---|---|---|
. | Description . | . | SE model (A) . | POP model (B) . | Structural model C (A+B) . | . |
CMIN | Model chi-square fit | P > 0.05 | 14.04 | 11.151 | 59.779 | Accepted |
DF | Degrees of freedom | 11.00 | 5.000 | 50.000 | Accepted | |
GFI | Goodness-of-fit | >0.95 | 0.984 | 0.982 | n/r | Accepted |
AGFI | Adjusted Goodness-of-fit | >0.90 | 0.96 | 0.947 | n/r | Accepted |
TLI | Tucker Lewis Index | >0.95 | 0.968 | 0.926 | 0.966 | Accepted |
CFI | Comparative Fit Index | >0.95 | 0.983 | 0.963 | 0.974 | Accepted |
RMSEA | Root-mean-square-error-of-approximation | <0.06 | 0.034 | 0.072 | 0.029 | Accepted |
SRMR | Standardized root mean square residual | <0.08 | 0.034 | 0.057 | 0.047 | Accepted |
PCLOSE | Test of close fit | >0.05 | 0.663 | 0.218 | 0.923 | Accepted |
CMIN/DF | Chi-square/df | 1 and 3 | 1.276 | 2.23 | 1.196 | Accepted |
Measures . | . | Threshold . | Computed values . | Inference . | ||
---|---|---|---|---|---|---|
. | Description . | . | SE model (A) . | POP model (B) . | Structural model C (A+B) . | . |
CMIN | Model chi-square fit | P > 0.05 | 14.04 | 11.151 | 59.779 | Accepted |
DF | Degrees of freedom | 11.00 | 5.000 | 50.000 | Accepted | |
GFI | Goodness-of-fit | >0.95 | 0.984 | 0.982 | n/r | Accepted |
AGFI | Adjusted Goodness-of-fit | >0.90 | 0.96 | 0.947 | n/r | Accepted |
TLI | Tucker Lewis Index | >0.95 | 0.968 | 0.926 | 0.966 | Accepted |
CFI | Comparative Fit Index | >0.95 | 0.983 | 0.963 | 0.974 | Accepted |
RMSEA | Root-mean-square-error-of-approximation | <0.06 | 0.034 | 0.072 | 0.029 | Accepted |
SRMR | Standardized root mean square residual | <0.08 | 0.034 | 0.057 | 0.047 | Accepted |
PCLOSE | Test of close fit | >0.05 | 0.663 | 0.218 | 0.923 | Accepted |
CMIN/DF | Chi-square/df | 1 and 3 | 1.276 | 2.23 | 1.196 | Accepted |
Note: PSE = self-efficacy, POP = perceived organizational performance.
Measures . | . | Threshold . | Computed values . | Inference . | ||
---|---|---|---|---|---|---|
. | Description . | . | SE model (A) . | POP model (B) . | Structural model C (A+B) . | . |
CMIN | Model chi-square fit | P > 0.05 | 14.04 | 11.151 | 59.779 | Accepted |
DF | Degrees of freedom | 11.00 | 5.000 | 50.000 | Accepted | |
GFI | Goodness-of-fit | >0.95 | 0.984 | 0.982 | n/r | Accepted |
AGFI | Adjusted Goodness-of-fit | >0.90 | 0.96 | 0.947 | n/r | Accepted |
TLI | Tucker Lewis Index | >0.95 | 0.968 | 0.926 | 0.966 | Accepted |
CFI | Comparative Fit Index | >0.95 | 0.983 | 0.963 | 0.974 | Accepted |
RMSEA | Root-mean-square-error-of-approximation | <0.06 | 0.034 | 0.072 | 0.029 | Accepted |
SRMR | Standardized root mean square residual | <0.08 | 0.034 | 0.057 | 0.047 | Accepted |
PCLOSE | Test of close fit | >0.05 | 0.663 | 0.218 | 0.923 | Accepted |
CMIN/DF | Chi-square/df | 1 and 3 | 1.276 | 2.23 | 1.196 | Accepted |
Measures . | . | Threshold . | Computed values . | Inference . | ||
---|---|---|---|---|---|---|
. | Description . | . | SE model (A) . | POP model (B) . | Structural model C (A+B) . | . |
CMIN | Model chi-square fit | P > 0.05 | 14.04 | 11.151 | 59.779 | Accepted |
DF | Degrees of freedom | 11.00 | 5.000 | 50.000 | Accepted | |
GFI | Goodness-of-fit | >0.95 | 0.984 | 0.982 | n/r | Accepted |
AGFI | Adjusted Goodness-of-fit | >0.90 | 0.96 | 0.947 | n/r | Accepted |
TLI | Tucker Lewis Index | >0.95 | 0.968 | 0.926 | 0.966 | Accepted |
CFI | Comparative Fit Index | >0.95 | 0.983 | 0.963 | 0.974 | Accepted |
RMSEA | Root-mean-square-error-of-approximation | <0.06 | 0.034 | 0.072 | 0.029 | Accepted |
SRMR | Standardized root mean square residual | <0.08 | 0.034 | 0.057 | 0.047 | Accepted |
PCLOSE | Test of close fit | >0.05 | 0.663 | 0.218 | 0.923 | Accepted |
CMIN/DF | Chi-square/df | 1 and 3 | 1.276 | 2.23 | 1.196 | Accepted |
Note: PSE = self-efficacy, POP = perceived organizational performance.
Exploratory and confirmatory factor analysis of study constructs
An exploratory factor analysis (EFA) was used to examine the underlying structure of 12 items of the two latent variables or constructs in the dataset. EFA utilized principal component analysis as the preferred method of extraction with varimax rotation and with minimum factor loading cut-off set at 0.50 and Eigenvalue set at 1.[24, 25] Four (4) characteristics or factors were extracted from the analysis. The loading of the factors in the EFA ranged from 0.546 to 0.852.
The factor loadings item-wise are as follows; SE1 = effectiveness (0.852), SE2 = efficiency (0.839), SE3 = timeliness (0.732), SE4 = proactiveness (0.707), SE5 = creativity (0.685), SE6 = adaptability (0.765), SE7 = not limited by circumstances (0.770), OP1 = improved sales output (0.623), OP2 = influenced policy (0.602), OP3 = improved subordinates’ performance (0.643), OP4 = improved organizations’ output (0.623) and OP5 = overall managerial impact (0.546). Other adequacy measures obtained were Kaiser Meyer Olkin = 0.693 (cutoff= >0.5); goodness of fit = 0.001 (cutoff < 0.05); total variance explained = 55.319 (minimum cutoff ≥50%); and Bartlett’s test of sphericity χ2 = 433.610 [df = 66, P < 0.001]. The pattern matrix obtained from the analysis which produced a 4-factor solution is displayed in Figure 1. Furthermore, the main construct PSE produced three sub-factors known as first-order constructs. They are self-efficiency (PSE1, PSE2), self-creativity (PSE3, PSE4, PSE5) and self-adaptability (PSE6, PSE7). Hence, the main construct is referred to as a second-order construct. POP construct produced only 1 factor consisting of POP1, POP2, POP3, POP4 and POP5. Thereafter, the confirmatory factor analysis (CFA) was used to confirm the factor matrix structure obtained from EFA. CFA was conducted on the combined structural model (A + B) and provided satisfactory model fit measures (Table 3), hence validating the structural model. (Figure 1).

Structural model showing the relationship between PSE and POP (standardized regression coefficients). Key: SE1 = effectiveness, SE2 = efficiency, SE3 = timeliness, SE4 = proactiveness, SE5 = creativity, SE6 = adaptability, SE7 = not limited by circumstances, OP1 = improved sales output, OP2 = influenced policy, OP3 = improved subordinates’ performance, OP4 = improved organizations’ output, OP5 = overall managerial impact.
Path analysis showing the influence of PSE on POP and first-order constructs
The results of this study showed that the mean value of perceived self-efficacy was 4.440 (SD = 0.881) and organizational performance was 4.528 (SD = 0.827). A significant positive relationship existed between PSE and POP among pharmaceutical managers (R2 = 0.65, β = 0.651, P < 0.001). Similarly, significant relationships also existed between perceived self-efficacy and the first-order constructs (self-efficiency, self-creativity and self-adaptability) as shown in Table 4.
Dependent variables . | Path . | Independent variables . | β . | t-Value . | P-value . | Inference . |
---|---|---|---|---|---|---|
Self-efficiency | <--- | PSE | 0.574 | Reference value | Significant | |
Self-creativity | <--- | PSE | 0.649 | 2.936 | 0.003 | Significant |
Self-adaptability | <--- | PSE | 0.463 | 2.237 | 0.025 | Significant |
POP | <--- | PSE | 0.651 | 2.988 | 0.003 | Significant |
Dependent variables . | Path . | Independent variables . | β . | t-Value . | P-value . | Inference . |
---|---|---|---|---|---|---|
Self-efficiency | <--- | PSE | 0.574 | Reference value | Significant | |
Self-creativity | <--- | PSE | 0.649 | 2.936 | 0.003 | Significant |
Self-adaptability | <--- | PSE | 0.463 | 2.237 | 0.025 | Significant |
POP | <--- | PSE | 0.651 | 2.988 | 0.003 | Significant |
Note: β = β path coefficient, P < 0.05 significance at t-calculated > t-critical.
Dependent variables . | Path . | Independent variables . | β . | t-Value . | P-value . | Inference . |
---|---|---|---|---|---|---|
Self-efficiency | <--- | PSE | 0.574 | Reference value | Significant | |
Self-creativity | <--- | PSE | 0.649 | 2.936 | 0.003 | Significant |
Self-adaptability | <--- | PSE | 0.463 | 2.237 | 0.025 | Significant |
POP | <--- | PSE | 0.651 | 2.988 | 0.003 | Significant |
Dependent variables . | Path . | Independent variables . | β . | t-Value . | P-value . | Inference . |
---|---|---|---|---|---|---|
Self-efficiency | <--- | PSE | 0.574 | Reference value | Significant | |
Self-creativity | <--- | PSE | 0.649 | 2.936 | 0.003 | Significant |
Self-adaptability | <--- | PSE | 0.463 | 2.237 | 0.025 | Significant |
POP | <--- | PSE | 0.651 | 2.988 | 0.003 | Significant |
Note: β = β path coefficient, P < 0.05 significance at t-calculated > t-critical.
Discussion
The objective of the study was to investigate the influence of perceived self-efficacy on the perceived organizational performance of pharmaceutical managers as well as examine the differences in the relationship based on the type of firm and gender. Study hypothesis-testing was based on the significance of the influence of self-efficacy on the organizational performance of a manager. The study showed that there was a robust positive causal relationship obtained between perceived self-efficacy (PSE) and perceived organizational performance (POP) [R2 = 0.65, P < 0.001] as well as its first-order constructs such as self-efficiency (PSE1, PSE2), self-creativity (PSE3, PSE4 and PSE5), and self-adaptability (PSE6, PSE7) (P < 0.05). Therefore, the proposed hypothesis H1 (β = 0.65, P < 0.001) was supported, which implies that self-efficacy significantly predicts or influences organizational performance among pharmaceutical managers. This study outcome aligns with several studies showing that self-efficacy positively influences the performance of employees.[6–8] In other words, managers with high levels of self-efficacy invariably have or achieve higher levels of performance in their organizations. This assertion of the study is contrary to the outcome of a meta-analytic study which showed that there is no relationship between both variables.[11] Furthermore, other studies also suggested a negative relationship.[3,12] Therefore, human resource managers have a role to play in prioritizing cognitive training for managers. Training should focus on identified areas of weakness and/or strength and be conducted to improve competencies critical to the success of the organization. This would impact positively the short and long-term productivity of managers in their designated roles. This assertion is supported by studies that reported higher cognitive and self-efficacy levels in employees exposed to training based on capacity building, enhanced collaboration and performance.[26, 27] Furthermore, to investigate performance scores relative to the level of self-efficacy by respondents in respective managerial roles (operational, product and strategic managers), a simple plot diagram was developed using the key indicators. Thus, the simple plot (Figure 2) revealed that there is a marginal impact on mean performance scores based on the effect of low, moderate and high self-efficacy exhibited by strategic, product and operational sales managers. It showed that no respondent adopted the low self-efficacy position. At moderate levels of self-efficacy, product managers had higher performance scores, compared to strategic managers and the least were operational sales managers. Although, the interaction effect of managerial role and self-efficacy level was not statistically significant [F (5, 235) = 1.975, P = 0.141)]. This analysis however suggests that there is a need to improve the focus on capacity development of operational sales managers because of their importance in ensuring that organizational strategies are implemented and desired performance achieved.

Simple plot of the interaction between self-efficacy level and managerial role on performance.
Furthermore, in line with the suggestion of Manasseh (2015), it is relevant to examine if gender and type of firm exerted any confounding impact on the relationship between perceived self-efficacy and perceived organizational performance.[11] To achieve this, the multigroup analytical approach to the structural model was adopted using the AMOS program. The multigroup analysis examined the hypothesis of whether the positive effect of perceived self-efficacy on perceived organizational performance was stronger in men compared to women as well as higher in managers in privately owned firms compared to multinational firms (Table 5). The non-significant effect between the groups on the hypothesized relationship suggests that there is minimal or non-existent dominance due to the numerical superiority of men (n = 171) versus women (n = 70) in addition to managers in privately owned firms (n = 147) compared to multinational firms (n = 94). Hence, hypothesis H2 was not supported. This finding is supported by a study that compared user perception between students and non-students utilizing a paratransit service[28] and a study that compared the effect of entrepreneurial self-efficacy on performance based on gender differences.[29] However, this study outcome is at variance with some studies that identified higher levels of self-efficacy in men compared to women in an academic setting.[30, 31] However, another study showed mixed reviews on performance in men and women students with regards to academic performance in different course subjects but the overall gender differences were found to be insignificant.[32] The outcomes of the study strengthen the need for adequate consideration and focus on the specific self-efficacy needs of pharmaceutical managers as it affects performance in their different functional roles.[2] In other words, self-efficacy had a varied impact on mean performance across the managerial roles (operational, product and strategic) occupied by study participants as shown in Figure 2. The most affected category was the operational sales managers with the least level of self-efficacy and performance score. This finding justifies the need for more attention to be given to capacity development in skills, and competencies of managers in line with their work roles.
Multigroup comparison of effect of self-efficacy on organizational performance
Path parameters . | Gender . | Type of firm . | ||
---|---|---|---|---|
Variables/parameters . | Men . | Women . | Privately owned . | Multinational . |
DF | 3 | 1 | ||
χ2 value | 3.187 | 2.070 | ||
P-value | 0.364 | 0.150 | ||
ß-coefficient | 0.670 | 0.580 | 0.670 | 0.520 |
Inference | No difference between groups | No difference between groups |
Path parameters . | Gender . | Type of firm . | ||
---|---|---|---|---|
Variables/parameters . | Men . | Women . | Privately owned . | Multinational . |
DF | 3 | 1 | ||
χ2 value | 3.187 | 2.070 | ||
P-value | 0.364 | 0.150 | ||
ß-coefficient | 0.670 | 0.580 | 0.670 | 0.520 |
Inference | No difference between groups | No difference between groups |
Note: DF = degrees of freedom, *significance at P < 0.05.
Multigroup comparison of effect of self-efficacy on organizational performance
Path parameters . | Gender . | Type of firm . | ||
---|---|---|---|---|
Variables/parameters . | Men . | Women . | Privately owned . | Multinational . |
DF | 3 | 1 | ||
χ2 value | 3.187 | 2.070 | ||
P-value | 0.364 | 0.150 | ||
ß-coefficient | 0.670 | 0.580 | 0.670 | 0.520 |
Inference | No difference between groups | No difference between groups |
Path parameters . | Gender . | Type of firm . | ||
---|---|---|---|---|
Variables/parameters . | Men . | Women . | Privately owned . | Multinational . |
DF | 3 | 1 | ||
χ2 value | 3.187 | 2.070 | ||
P-value | 0.364 | 0.150 | ||
ß-coefficient | 0.670 | 0.580 | 0.670 | 0.520 |
Inference | No difference between groups | No difference between groups |
Note: DF = degrees of freedom, *significance at P < 0.05.
Implications of study to practice
This study contributed another dimension to extant research on perceived self-efficacy and performance among pharmaceutical managers. Managers should consciously identify their weaknesses and seek remedial improvement actions on an ongoing basis. Further improvement of the path model to adapt to other countries and contexts of pharmacy practice is suggested. Human resource managers in pharmaceutical marketing organizations should develop innovative strategies to identify the key self-efficacy needs of managers based on their specific functional roles. This approach would positively improve the overall performance of managers. Therefore, self-efficacy and organizational performance can be enhanced through a variety of measures. First, human resource managers should ensure a culture of continuous capacity improvement in work-based competencies, skillsets and collaborative mentorship is built within teams. Second, human resource managers should adopt focal and routine training to enhance the work-based competencies, professional development and problem-solving skills of pharmaceutical managers. Finally, intra- and inter-team collaboration among managers would foster a learning environment for challenged managers to enhance their performance capability.
Limitations of the study
The study adopted quantitative measures to investigate the relationship between perceived self-efficacy and perceived organizational performance, which used self-reported measures. The challenge associated with self-reported measures was that respondents may tend to score themselves highly on questions relating to performance and self-efficacy. Also, there is a need for qualitative research to further broaden the scope of understanding of the constructs as they relate to managers in the pharmaceutical industry in Nigeria. The study did not include validity measures of the model and thus should be done for future studies.
Conclusion
The focus of the study was to investigate the influence of perceived self-efficacy on performance among managers in the pharmaceutical industry in Nigeria. The measurement models of self-efficacy, organizational performance constructs and structural models had acceptable measures of fit. Three first-order constructs were derived from the self-efficacy construct namely self-adaptability, self-efficiency and self-creativity. Structural equation modelling revealed a significant positive effect of self-efficacy on organizational performance. Simple plot analysis revealed lower performance scores at a moderate level of self-efficacy with operational sales managers compared to strategic and product managers. Multigroup analysis revealed no dominant effect of gender and type of firm on the hypothesized relationship. The study suggests management training for managers to improve their level of self-efficacy. The study concluded that self-efficacy has a significant influence on the organizational performance of pharmaceutical managers.
Acknowledgment
Authors wish to appreciate the management of the Ministry of Health, Health Research, and statistics department for their approval of this research work.
Funding
None.
Conflict of Interest
The author declares that he has no conflicts of interest.
Authorship Statement
This is to certify that this original research work was done ethically and the manuscript is in compliance with the policies of this Journal.
Ethical Approval
Ethical approval was obtained from the department of research and statistics, Ogun state Ministry of Health. The approval number is HPRS/381/416 dated 23rd November, 2021. Informed consent was obtained from respondents before the administration of the questionnaire.
Data Availability
The data used for this study is available on request from the author.
References
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