Digital Transformation Disclosure, Marketing Intensity, and Financial Performance: Evidence from Indonesian State-Owned Pharmaceutical Cases
DOI:
https://doi.org/10.38035/gcir.v2i1.865Keywords:
Digital Transformation Disclosure, Selling Expense Intensity, Financial Performance, Pharmaceutical Companies, Documentary AnalysisAbstract
Corporate reports increasingly connect digital transformation with commercial and financial improvement, although disclosed initiatives do not establish their economic contribution. This study examines digital transformation disclosure, selling expense intensity and financial performance in two nested Indonesian state owned pharmaceutical cases. A longitudinal documentary comparison uses public reports covering 2021–2025, with financial comparisons concentrated on the latest comparable figures for 2023–2025. In 2025, Kimia Farma’s selling expense ratio fell from 22.80 to 19.67 percent and its net loss margin narrowed from 12.16 to 4.81 percent despite declining revenue. Phapros’ ratio fell from 49.83 to 30.74 percent, while revenue recovered and its net margin became positive. Both reports describe digital initiatives, but neither provides attribution sufficient to link those initiatives to the financial changes. An exact decomposition shows that lower expenditure and changing revenue denominators contributed differently to the two expense ratios. The contribution is a reproducible distinction between disclosed transformation, selling cost intensity and realised financial outcomes. The findings support a cautious interpretation of annual report based digital measures rather than a causal performance claim.
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