THE STRATEGIC ROLE OF SOCIAL PERFORMANCE IN ENHANCING EMPLOYEE PRODUCTIVITY: EVIDENCE FROM THE PHARMACEUTICAL MANUFACTURING SECTOR

Abstract

This study investigates the impact of social performance (SP) practices on employee productivity (EM-PR) in the pharmaceutical manufacturing sector, focusing on key dimensions such as health and safety, inclusive recruitment, and training and development. Drawing on primary data collected from 152 employees across pharmaceutical firms, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the relationships between SP constructs and operational employee outcomes. The measurement model demonstrated strong reliability and validity, with satisfactory Cronbach’s alpha, composite reliability, and average variance extracted (AVE) values. Structural model results indicate that SP practices positively and significantly influence employee productivity, with training and development showing the strongest path coefficient. The model yielded substantial R² values and moderate to large effect sizes (f²), confirming the predictive relevance of the constructs. These findings underscore the strategic role of social responsibility in enhancing workforce performance in technically intensive industries. The study recommends that pharmaceutical firms institutionalize SP practices as core elements of their operational strategy, while policymakers should incentivize socially responsible behavior through regulatory support and industry standards. Future research should adopt longitudinal approaches and broaden sectoral coverage to validate the generalizability of these insights.