Governance forms of the pharmaceutical supply chain of Bogotá, Colombia

Abstract

The present work analyzes the relation between governance forms and supply chain performance as mediated by transaction cost determinants. Based on the Transaction Cost Theory, the governance forms of the pharmaceutical supply chain of the city of Bogota (Colombia) are analyzed through their capability to minimize transaction costs at each link of the supply chain. The object of study was a sample of those companies dealing with the national Compulsory Health Plan, ranging from molecule suppliers to health service providers. This assessment was carried out by means of an innovative mathematical technique named Stochastic Multi-criteria Acceptability Analysis – Matching. The results show a significant number of anomalies in the selection of the governance forms by the companies, as they have made organizational decisions that do not facilitate the reduction of their transaction costs. Finally, and based upon the analysis, the reasons that explain the situation are detailed. © 2024 The Authors