Integrating production systems, innovation culture and employee performance in the pharmaceutical industry

Purpose This study analyzed the effect of lean operation practices, continuous improvement orientation and total quality management on innovation culture within organizational culture, and how these factors influence employees' job satisfaction, organizational commitment and perceived work performance. Design/methodology/approach Employing a cross-sectional survey design with 250 valid responses from employees in the Korean pharmaceutical industry, we used a 7-point Likert scale to measure eight constructs and tested hypotheses through structural equation modeling using SPSS 18.0 and AMOS 18.0, including comprehensive reliability and validity assessments through confirmatory factor analysis. Findings Lean operational practices were not significantly related to organizational culture variables, whereas continuous improvement and total quality management were significantly related to collaborative organizational culture and innovation culture. Only innovation culture showed significant results in relation to the dependent variables of job satisfaction, organizational commitment and perceived work performance. This can be seen as occurring because, in the regulatory environment of the pharmaceutical industry, collaboration is already mandated for regulatory compliance and thus functions as a hygiene factor, whereas innovation culture functions as a differentiating factor that compensates for the autonomy restricted by regulation. Originality/value This study is the first to empirically analyze the integrated relationship between production management systems, organizational culture and employee performance in the pharmaceutical industry. Although existing studies have explored individual variable relationships or dynamics in general manufacturing industries, we propose a convergent perspective on production and human resource management that considers the characteristics of the pharmaceutical industry.