Information Systems Capability, Market Expansion, and Profitability in Indonesian State-Owned Pharmaceutical Cases: The Proposed Mediating Role of Sales Growth
DOI:
https://doi.org/10.38035/gcir.v2i1.863Keywords:
Information Systems, Market Expansion, Sales Growth, Profitability, Mediation IdentificationAbstract
The link between information systems, market expansion and profitability is often described through sales growth, but annual reports rarely provide the measures needed to identify that mechanism. This study examines the evidential status of the proposed pathway in Kimia Farma and Phapros using a longitudinal documentary comparison of public reports for 2021–2025. Technology and market access narratives are read alongside revenue and the latest comparable financial figures. Phapros’ 2025 revenue increased by 26.34 percent and its net margin returned to positive territory. Kimia Farma’s revenue decreased by 7.20 percent while its net loss margin improved. The contrasting patterns show that revenue growth is neither a necessary description of margin recovery nor sufficient evidence of a mediated effect. Reported enterprise systems, electronic commerce and distribution arrangements suggest plausible operational links, but deployment, customer conversion and causal timing remain unobserved. The study contributes an identification audit that distinguishes a theoretically plausible pathway from a tested mediation claim. It identifies the operational and longitudinal evidence required for subsequent empirical testing.
References
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bharadwaj, A. S. (2000). A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. MIS Quarterly, 24(1), 169–196. https://doi.org/10.2307/3250983
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital Business Strategy: Toward a Next Generation of Insights. MIS Quarterly, 37(2), 471–482. https://doi.org/10.25300/misq/2013/37:2.3
Bowen, G. A. (2009). Document Analysis as a Qualitative Research Method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/qrj0902027
Colin Cameron, A., & Miller, D. L. (2015). A Practitioner’s Guide to Cluster-Robust Inference. Journal of Human Resources, 50(2), 317–372. https://doi.org/10.3368/jhr.50.2.317
Collins, C., Dennehy, D., Conboy, K., & Mikalef, P. (2021). Artificial intelligence in information systems research: A systematic literature review and research agenda. International Journal of Information Management, 60, 102383. https://doi.org/10.1016/j.ijinfomgt.2021.102383
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001
DeLone, W. H., & McLean, E. R. (2003). The DeLone and McLean Model of Information Systems Success: A Ten-Year Update. Journal of Management Information Systems, 19(4), 9–30. https://doi.org/10.1080/07421222.2003.11045748
DiMasi, J. A., Grabowski, H. G., & Hansen, R. W. (2016). Innovation in the pharmaceutical industry: New estimates of R&D costs. Journal of Health Economics, 47, 20–33. https://doi.org/10.1016/j.jhealeco.2016.01.012
Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A. S., Kumar, V., Rahman, M. M., Raman, R., Rauschnabel, P. A., Rowley, J., Salo, J., Tran, G. A., & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59, 102168. https://doi.org/10.1016/j.ijinfomgt.2020.102168
Eisenhardt, K. M. (1989). Building Theories from Case Study Research. The Academy of Management Review, 14(4), 532. https://doi.org/10.2307/258557
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory Building From Cases: Opportunities And Challenges. Academy of Management Journal, 50(1), 25–32. https://doi.org/10.5465/amj.2007.24160888
Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation, 102, 102217. https://doi.org/10.1016/j.technovation.2020.102217
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405–440. https://doi.org/10.1016/s0165-4101(01)00018-0
Hollebeek, L. D., & Macky, K. (2019). Digital Content Marketing's Role in Fostering Consumer Engagement, Trust, and Value: Framework, Fundamental Propositions, and Implications. Journal of Interactive Marketing, 45(1), 27–41. https://doi.org/10.1016/j.intmar.2018.07.003
Ismail, M. I., Sova, M., & Limakrisna, N. (2022). EFFECT OF HALAL LABELS, BRANDS, AND PRICES ON OVER THE COUNTER DRUGS PURCHASE DECISION IN WEST JAVA PROVINCE DURING COVID-19. Dinasti International Journal of Management Science, 3(3), 508–524. https://doi.org/10.31933/dijms.v3i3.1038
Ismail, M. I., Sova, M., & Ahamed, F. (2026). Trust as mediator of online reviews, price perception, website quality, and purchase decisions. Journal of Business and Economics Research (JBE), 7(2), 347–354. https://doi.org/10.47065/jbe.v7i2.9990
Joshi, A., & Hanssens, D. M. (2010). The Direct and Indirect Effects of Advertising Spending on Firm Value. Journal of Marketing, 74(1), 20–33. https://doi.org/10.1509/jmkg.74.1.20
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. Sage Open, 11(3), 21582440211047576. https://doi.org/10.1177/21582440211047576
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466
Li, F., Larimo, J., & Leonidou, L. C. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49(1), 51–70. https://doi.org/10.1007/s11747-020-00733-3
Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly, 28(2), 283–322. https://doi.org/10.2307/25148636
Mikalef, P., Krogstie, J., Pappas, I. O., & Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management, 57(2), 103169. https://doi.org/10.1016/j.im.2019.05.004
Mikalef, P., & Gupta, M. (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. https://doi.org/10.1016/j.im.2021.103434
Morgan, N. A., Vorhies, D. W., & Mason, C. H. (2009). Market orientation, marketing capabilities, and firm performance. Strategic Management Journal, 30(8), 909–920. https://doi.org/10.1002/smj.764
Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102–119. https://doi.org/10.1007/s11747-011-0279-9
Nadkarni, S., & Prügl, R. (2021). Digital transformation: a review, synthesis and opportunities for future research. Management Review Quarterly, 71(2), 233–341. https://doi.org/10.1007/s11301-020-00185-7
PT Kimia Farma (Persero) Tbk (2026). Annual report 2025. https://www.kimiafarma.co.id/files/Lap_Tahunan/Laporan_Tahunan_Tahun_Buku%202025.pdf
PT Kimia Farma Tbk (2022). Annual report 2021. https://www.kimiafarma.co.id/files/Lap_Tahunan/Laporan_Tahunan-2021.pdf
PT Kimia Farma Tbk (2023). Annual report 2022. https://www.kimiafarma.co.id/files/Lap_Tahunan/Lap_Tahunan_TB_22.pdf
PT Kimia Farma Tbk (2024a). Annual report 2023. https://www.kimiafarma.co.id/files/Lap_Tahunan/LT_TB23.pdf
PT Kimia Farma Tbk (2024b). Reissued consolidated financial statements 2023. https://www.kimiafarma.co.id/files/Lap_Audited/R1_LK%20FINAL%20Kimia%20Farma%20Tbk.pdf
PT Phapros Tbk (2022). Integrated annual report 2021. https://www.phapros.co.id/cfind/source/files/report/annual-report/phapros%20ir%202021%20-%20190522.pdf
PT Phapros Tbk (2023). Integrated annual report 2022. https://www.phapros.co.id/cfind/source/files/report/annual-report/ar%202022%20phapros%20-%20280423.pdf
PT Phapros Tbk (2025). Integrated annual report 2024. https://www.phapros.co.id/cfind/source/files/report/annual-report/ar%20phapros%202024_040625_compressed.pdf
PT Phapros Tbk (2026). Integrated annual report and sustainability report 2025. https://www.phapros.co.id/cfind/source/files/report/annual-report/AR%20TB%202025%20FINAL.pdf
Ritter, T., & Pedersen, C. L. (2020). Digitization capability and the digitalization of business models in business-to-business firms: Past, present, and future. Industrial Marketing Management, 86, 180–190. https://doi.org/10.1016/j.indmarman.2019.11.019
Saura, J. R. (2021). Using Data Sciences in Digital Marketing: Framework, methods, and performance metrics. Journal of Innovation & Knowledge, 6(2), 92–102. https://doi.org/10.1016/j.jik.2020.08.001
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Sova, M., Lumbanraja, T., & Iqbal Ismail, M. (2023). Analysis of The Implementation of PSAK No. 71 on Impairment Loss Reserves: A Case Study of State-Owned Pharmaceutical Companies Listed on The Indonesia Stock Exchange (BEI). Greenation International Journal of Economics and Accounting, 1(2), 87–95. https://doi.org/10.38035/gijea.v1i2.42
Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-Based Assets and Shareholder Value: A Framework for Analysis. Journal of Marketing, 62(1), 2–18. https://doi.org/10.1177/002224299806200102
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(sici)1097-0266(199708)18:7<509::aid-smj882>3.0.co;2-z
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Tippins, M. J., & Sohi, R. S. (2003). IT competency and firm performance: is organizational learning a missing link?. Strategic Management Journal, 24(8), 745–761. https://doi.org/10.1002/smj.337
VanderWeele, T. J. (2016). Mediation Analysis: A Practitioner's Guide. Annual Review of Public Health, 37(1), 17–32. https://doi.org/10.1146/annurev-publhealth-032315-021402
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Wade, M., & Hulland, J. (2004). Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions For Future Research. MIS Quarterly, 28(1), 107–142. https://doi.org/10.2307/25148626
Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J. f., Dubey, R., & Childe, S. J. (2017). Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356–365. https://doi.org/10.1016/j.jbusres.2016.08.009

















