Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains

Orientation: Pharmaceutical supply chains (SCs) are experiencing a growing emergence of illicit trade of counterfeited products. This threat is amplified because of global distributed SC networks, increased access to the Internet and challenging economic conditions. Research purpose: The purpose of...

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Autores principales: Christine Terblanche, Wesley Niemann
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Publicado: AOSIS 2021
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Acceso en línea:https://doaj.org/article/8f419b873a5f4618b25caafe4d8ceecf
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spelling oai:doaj.org-article:8f419b873a5f4618b25caafe4d8ceecf2021-11-24T07:29:06ZCounterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains2413-19031684-199910.4102/ac.v21i1.963https://doaj.org/article/8f419b873a5f4618b25caafe4d8ceecf2021-11-01T00:00:00Zhttps://actacommercii.co.za/index.php/acta/article/view/963https://doaj.org/toc/2413-1903https://doaj.org/toc/1684-1999Orientation: Pharmaceutical supply chains (SCs) are experiencing a growing emergence of illicit trade of counterfeited products. This threat is amplified because of global distributed SC networks, increased access to the Internet and challenging economic conditions. Research purpose: The purpose of this study was to explore risk mitigation capabilities and SC resilience (SCRES) to reduce the effects of counterfeiting in the South African pharmaceutical industry. Motivation for the study: Developing countries such as South Africa tend to be more vulnerable to counterfeiting, as these countries do not have established responses that are seen in more developed countries, such as SC regulation, track-and-trace technology and enforcement regimes. Research design, approach and method: This study employed a generic qualitative research design. Semi-structured interviews were used to collect data from 12 pharmaceutical manufacturers, distributors and retailers in the South African pharmaceutical industry. A thematic analysis approach was followed to analyse the collected data. Main findings: The findings show that the sources of counterfeiting stem from the local and outsourced manufacturing of counterfeited products, presence of unauthorised distributors and importing of counterfeit products. Risk awareness can be enhanced by collaborating with industry members, training members to identify counterfeits and by developing authentication technologies. The industry actively combats counterfeiting by using SCRES enablers including visibility, collaboration, information sharing and by developing an SC risk management culture. Practical/managerial implications: South African pharmaceutical firms have limited resilience. Therefore, managers should develop flexibility, agility, sensing and redundancy as resilience enables firms to combat counterfeiting. Contribution/value-add: This study expands the current literature by identifying the unique sources of counterfeiting and risk mitigation capabilities to combat counterfeiting in pharmaceutical firms in a developing country context.Christine TerblancheWesley NiemannAOSISarticlesupply chain risk mitigationsupply chain resiliencecounterfeitingpharmaceutical firmsqualitativesouth africaManagement. Industrial managementHD28-70BusinessHF5001-6182ENActa Commercii, Vol 21, Iss 1, Pp e1-e13 (2021)
institution DOAJ
collection DOAJ
language EN
topic supply chain risk mitigation
supply chain resilience
counterfeiting
pharmaceutical firms
qualitative
south africa
Management. Industrial management
HD28-70
Business
HF5001-6182
spellingShingle supply chain risk mitigation
supply chain resilience
counterfeiting
pharmaceutical firms
qualitative
south africa
Management. Industrial management
HD28-70
Business
HF5001-6182
Christine Terblanche
Wesley Niemann
Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
description Orientation: Pharmaceutical supply chains (SCs) are experiencing a growing emergence of illicit trade of counterfeited products. This threat is amplified because of global distributed SC networks, increased access to the Internet and challenging economic conditions. Research purpose: The purpose of this study was to explore risk mitigation capabilities and SC resilience (SCRES) to reduce the effects of counterfeiting in the South African pharmaceutical industry. Motivation for the study: Developing countries such as South Africa tend to be more vulnerable to counterfeiting, as these countries do not have established responses that are seen in more developed countries, such as SC regulation, track-and-trace technology and enforcement regimes. Research design, approach and method: This study employed a generic qualitative research design. Semi-structured interviews were used to collect data from 12 pharmaceutical manufacturers, distributors and retailers in the South African pharmaceutical industry. A thematic analysis approach was followed to analyse the collected data. Main findings: The findings show that the sources of counterfeiting stem from the local and outsourced manufacturing of counterfeited products, presence of unauthorised distributors and importing of counterfeit products. Risk awareness can be enhanced by collaborating with industry members, training members to identify counterfeits and by developing authentication technologies. The industry actively combats counterfeiting by using SCRES enablers including visibility, collaboration, information sharing and by developing an SC risk management culture. Practical/managerial implications: South African pharmaceutical firms have limited resilience. Therefore, managers should develop flexibility, agility, sensing and redundancy as resilience enables firms to combat counterfeiting. Contribution/value-add: This study expands the current literature by identifying the unique sources of counterfeiting and risk mitigation capabilities to combat counterfeiting in pharmaceutical firms in a developing country context.
format article
author Christine Terblanche
Wesley Niemann
author_facet Christine Terblanche
Wesley Niemann
author_sort Christine Terblanche
title Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
title_short Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
title_full Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
title_fullStr Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
title_full_unstemmed Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains
title_sort counterfeiting: exploring mitigation capabilities and resilience in south african pharmaceutical supply chains
publisher AOSIS
publishDate 2021
url https://doaj.org/article/8f419b873a5f4618b25caafe4d8ceecf
work_keys_str_mv AT christineterblanche counterfeitingexploringmitigationcapabilitiesandresilienceinsouthafricanpharmaceuticalsupplychains
AT wesleyniemann counterfeitingexploringmitigationcapabilitiesandresilienceinsouthafricanpharmaceuticalsupplychains
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