Exploring the Role of Big Data Analytics and Dynamic Capabilities in ESG Programs within Pharmaceuticals

Abstract

Abstract In the European pharmaceutical sector, Big Data Analytics (BDA) systems and Environmental, Social, and Governance (ESG) programs are still emerging areas, lagging in substantial progress. Despite the recognition of the importance of both BDA and ESG programs across various industries, their effective implementation remains limited within pharmaceuticals. This deficit is particularly noticeable in managing complex variables such as employee skill sets, corporate goals, and managerial expectations. Drawing on Dynamic Capabilities (DC) theory and agile methodologies, this two-year research endeavor aims to create a BDA technology-based architecture to facilitate organizational management of ESG criteria. It focuses on enhancing data provenance, traceability, and availability while ensuring efficient, evolutionary ESG management. A multi-case study was conducted involving five pharmaceutical companies’ headquarters located in Germany, Portugal, and Switzerland. In addition to addressing key ESG considerations and challenges relating to policies and operational BDA technology, these organizations engaged the same consulting firm to execute their BDA systems. Overall, this study aims to identify the primary characteristics of companies that implement BDA systems effectively. It emphasizes not only technological components but also human behavioral factors and individual DC. The findings from the case studies demonstrate that the proposed BDA system is highly accurate and effective for ESG management. A further benefit is that it meets the real-time requirements inherent in both BDA and ESG applications, which establishes its practical utility in both cases.