Impact of Intellectual Capital Investment on Sustainable Competitive Advantage in Sudanese Pharmaceuticals

Abstract

Purpose: The purpose of this study is to investigate the impact of intellectual capital (IC) components—human, structural, and customer capital—on sustainable competitive advantage (SCA) within the Sudanese pharmaceutical manufacturing industry.
Design/methodology/approach A cross-sectional survey design was employed, targeting employees in key managerial and technical positions with over five years of experience. Data were gathered from 50 valid questionnaires out of 60 distributed (a 91.7% response rate, with 83.3% usability). The conceptual model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) via Smart-PLS software.
Findings: The results indicate that human capital significantly influences the quality of products and services, while customer capital is a primary driver for efficiency and responsiveness. Conversely, structural capital showed no significant statistical effect on any dimension of competitive advantage. The integrated model explained 43% of the variance in responsiveness, 37% in innovation, 32% in quality, and 31% in efficiency, indicating a moderate to weak predictive power in this specific context.
Originality: This study contributes to the existing literature by providing empirical evidence from a developing economy (Sudan), specifically within the pharmaceutical sector. It highlights the non-uniform impact of IC components, suggesting that the value of intellectual assets is context-dependent.
Practical implications: Managers in Sudanese pharmaceutical firms should prioritize investments in human capital development and customer relationship management to enhance quality and operational responsiveness. The lack of impact from structural capital suggests a need for digital transformation and internal process restructuring to better leverage intellectual assets.