Dynamic capability in action at PharmaCorp

PharmaCorp is a subsidiary of one of Japan's largest pharmaceutical companies, employing 60 people in its Dublin bulk pharmaceutical manufacturing plant. The plant makes the active ingredients for four products, supplying them for conversion to other, larger pharmaceutical companies that are licensed to sell the drugs. It is common practice for Japanese firms to licence sales of their products outside Japan to companies who have stronger brand image and marketing capability in these markets. Because of the nature of its production, PharmaCorp is licensed by the Irish Environmental Protection Agency (EPA). PharmaCorp's integrated pollution prevention control (IPPC) licence requires, amongst other obligations, the company to maintain an environmental management system and to demonstrate continuous improvement of its environmental impact. Companies are expected to pursue environmental change through the adoption of 'cleaner technology': cleaner technology is when production process produces less waste, use fewer resources and consumes less energy. This can be achieved by changing the raw materials used to less toxic alternatives, improving the efficiency of processes and equipment, and increasing the use of recycling etc. Adopting cleaner technology requires companies to change their production technology radically and can be very challenging; companies in Ireland have struggled with the demands of IPPC licensing.