1. Introduction
Innovation has long been recognized as a key engine of industrial transformation and sustainable competitiveness, particularly in highly regulated and research-intensive sectors such as pharmaceuticals. In Indonesia, the pharmaceutical market continues to grow, driven by demographic expansion, the implementation of the National Health Insurance Program (Jaminan Kesehatan Nasional—JKN), and increasing public awareness of health and wellness. However, this growth also brings structural challenges, including pricing constraints under the JKN reimbursement system, disparities in medicine distribution, and intensified regulatory oversight [
1,
2,
3]. These dynamics require pharmaceutical firms to adopt sustainable marketing innovation strategies to maintain competitiveness while ensuring equitable access to healthcare [
4].
Sustainable marketing innovation is increasingly viewed as a fundamental determinant of long-term corporate resilience and value creation [
5]. According to the Oslo Manual, marketing innovation encompasses significant changes in product design, pricing, promotion, and distribution to better satisfy customer needs [
6]. Within the pharmaceutical context, this extends to process and organizational innovations that enable ethical promotion, data-driven engagement with healthcare professionals, and responsible supply chain practices [
7,
8]. Empirical evidence highlights that firms adopting sustainability-oriented innovation strategies achieve superior performance when marketing and technological dimensions are aligned. Studies have shown that marketing-led innovation enhances adaptive capacity and market responsiveness [
9], while digital communication and stakeholder co-creation play pivotal roles in embedding sustainability within marketing systems [
10]. Moreover, competition intensity and product life-cycle management significantly influence innovation performance and strategic decision-making in the pharmaceutical industry [
8,
11].
Despite these advances, the current literature remains fragmented, often addressing single innovation dimensions such as product or promotion without providing an integrated model for prioritization. In emerging markets like Indonesia, few studies have systematically evaluated how different marketing innovation dimensions contribute to sustainability outcomes or how resource allocation decisions can be optimized under uncertainty [
12,
13,
14]. This research addresses these gaps by employing the Fuzzy Analytic Hierarchy Process (Fuzzy AHP) to prioritize six innovation dimensions—product, process, organization, price, promotion, and distribution—based on expert judgments from diverse clinical, managerial, and policy backgrounds.
Beyond methodological application, this study advances previous research by integrating the Resource-Based View (RBV) with Fuzzy AHP to establish a robust theoretical foundation for decision modeling in sustainable marketing. Prior studies applying Fuzzy AHP have primarily focused on technical weighting of criteria without linking the approach to strategic management theory [
15,
16,
17]. By contrast, this study operationalizes the RBV by interpreting expert knowledge, marketing capabilities, and stakeholder engagement as valuable, rare, inimitable, and non-substitutable (VRIN) resources that shape innovation priorities. Through this integration, the model bridges the gap between sustainable marketing theory and operational prioritization tools, offering a reproducible framework for strategic decision-making in regulated industries.
To reinforce theoretical transparency, a conceptual framework figure (
Figure 1) is proposed to visualize how RBV constructs interact with the six marketing innovation dimensions. The framework depicts how firm resources and capabilities act as antecedents that influence product, process, organization, price, promotion, and distribution innovations, which collectively drive sustainable competitive advantage. This visualization clarifies the theoretical pathway linking internal resources to measurable innovation outcomes and positions marketing innovation as both a sustainability enabler and a strategic decision domain.
Accordingly, this study aims to identify and prioritize the marketing innovation dimensions most critical to enhancing sustainable performance in Indonesia’s pharmaceutical sector. By embedding RBV into a Fuzzy AHP-based decision framework, the research contributes both theoretically by extending sustainability and innovation theory into a resource-based context, and methodologically by refining multi-criteria decision modeling to better reflect uncertainty and expert-driven judgment.
3. Results
This section reports the empirical outcomes of the Fuzzy Analytic Hierarchy Process (Fuzzy AHP) applied to prioritize six marketing innovation dimensions for pharmaceutical firms in Indonesia. Expert judgments from eight specialists were aggregated and processed following the procedure described in
Section 2. The Results are presented in four parts: aggregated pairwise judgments, fuzzy synthetic extents and defuzzified values, final priority ranking and visualization, and interpretation with strategic implications. Consistency checks show the aggregated judgments are acceptable and reproducible.
3.1. Aggregated Expert Judgments (Consensus Pairwise Comparisons)
All expert pairwise comparisons were converted into triangular fuzzy numbers (TFNs) and aggregated using the geometric mean rule to form a consensus assessment. The resulting aggregated pairwise comparison matrix is shown in
Table 5, where each cell represents the relative importance of the criterion in the corresponding row compared with the criterion in the corresponding column. Diagonal values equal 1, and the lower triangular values are reciprocals of the upper triangular values. This consensus matrix served as the input for the fuzzy synthetic extent analysis and subsequent defuzzification.
3.2. Fuzzy Synthetic Extent, Defuzzification, and Normalized Weights
From the aggregated pairwise comparisons shown in
Table 5, fuzzy synthetic extent values
Si were computed for each innovation dimension using Chang’s extent analysis method [
38]. The sum of row values (crisp aggregation) and the resulting synthetic extent for each dimension are shown in
Table 6.
From these synthetic extents, defuzzified values were derived by the centroid/defuzzification routine used in the processing workbook. These defuzzified scores were normalized so that their sum equals 1. Final normalized weights and ranking are shown in
Table 7.
The aggregated pairwise comparisons exhibit acceptable internal consistency, with all consistency ratios (CR) below the conventional threshold of 0.10 [
39].
3.3. Priority Ranking and Visualization
The normalized weights obtained from
Table 6 were used to rank the six innovation dimensions. Promotion emerged as the top priority (0.2384), followed by process (0.2253) and product (0.1790). Price, distribution, and organization received lower relative weights, reflecting their comparatively smaller contribution to sustainable marketing performance.
Figure 2 presents a bar chart of normalized weights, allowing quick visual comparison across all six dimensions. Each bar represents a criterion, and its height corresponds to the normalized weight. The values are shown above each bar to highlight the relative differences among criteria.
Interpretation of the ranking in relation to the research objective:
The objective is to prioritize the marketing innovation dimensions that most strongly contribute to sustainable performance. The Result shows that resource allocation emphasizing promotion, process, and product innovation will likely yield the highest sustainable impact, according to the expert panel;
Promotion ranks first, indicating that effective, ethical, and targeted stakeholder engagement strategies are perceived by experts as the most leverageable area for immediate sustainability gains. Promotion here includes activities such as educational outreach to healthcare professionals, digital engagement, and value communication;
Process ranking second reflects the experts’ view that operational improvements, supply chain resilience, and compliance mechanisms are foundational to sustainable marketing outcomes;
Product ranking third underscores the continuing importance of product-level innovation such as formulation, packaging, and service enhancements.
3.4. Key Findings Linked to the Study Objective
Promotion is the primary area to prioritize for sustainable marketing innovation in Indonesia. Investing in promotion yields strategic advantages in stakeholder engagement, uptake, and responsible market behavior. This aligns with literature emphasizing the role of communication and market engagement in realizing innovation value [
38];
Process improvements are essential to operationalize sustainable marketing. Strengthening manufacturing practices, logistics, and regulatory alignment improves product availability and reduces risks, thereby complementing promotional efforts [
39];
Product innovation remains crucial for differentiation and value creation, particularly when paired with promotion and process enhancements [
34];
Price, distribution, and organization are important support dimensions, but with lower immediate priority; these should be managed after the top three priorities, or used selectively based on firm size and capability.
Managerial recommendations derived from results:
Reallocate a larger proportion of innovation budgets to promotion initiatives that are evidence-based, ethically framed, and digitally enabled;
Launch process-improvement programs targeting regulatory compliance, quality assurance, and supply chain visibility to complement product and promotion strategies;
Maintain a strong product innovation pipeline focused on affordability, patient-centric features, and sustainable production practices.
Academic contribution:
This study demonstrates how Fuzzy AHP can be used to generate expert-informed, reproducible priority rankings for innovation strategy in regulated sectors such as pharmaceuticals. The approach contributes to the literature on strategic innovation prioritization by integrating expert judgment under uncertainty with quantitative weighting methods.
4. Discussion
The prioritization results provide clear guidance on which innovation strategies pharmaceutical firms should emphasize to support sustainable growth in Indonesia. Promotion innovation is identified as the highest-priority dimension, consistent with previous literature emphasizing the central role of stakeholder engagement and communication in realizing the value of innovation [
38]. Promotion activities, particularly those focusing on ethical education for healthcare professionals, digital engagement, and transparent value communication, are essential for generating demand and encouraging responsible prescribing practices [
39].
Process innovation ranks second, aligning with studies that highlight operational efficiency, regulatory compliance, and supply chain resilience as critical foundations of competitive advantage [
34]. Strengthening internal processes reduces risk, ensures product availability, and reinforces promotional efforts by enabling reliable and consistent delivery to the market.
Product innovation, ranked third, confirms the continuing need for differentiation through formulation improvements, packaging innovation, and patient-centric solutions [
40]. While promotion and process improvements facilitate market access, product-level innovations provide the tangible value that drives adoption and loyalty.
Price, distribution, and organization received lower weights than the top three dimensions. This pattern suggests that, although these areas remain important, they are perceived as less urgent in the Indonesian market context. This finding contrasts with evidence from developed markets, where pricing strategies and organizational innovation often serve as primary competitive levers [
41]. The difference likely reflects Indonesia’s regulatory constraints and universal health coverage framework, which limit pricing flexibility and emphasize equitable access and operational reliability.
The empirical findings can be interpreted through the Resource-Based View (RBV), suggesting that firms in highly regulated sectors achieve sustainable competitive advantage by leveraging distinctive internal resources such as marketing knowledge, stakeholder engagement, and operational agility [
8,
9]. These findings are consistent with broader evidence that firms in emerging economies develop context-adaptive innovation capabilities to overcome institutional and market constraints [
42]. Within Indonesia’s regulatory and cultural environment, these priorities reflect the critical importance of ethical promotion practices, compliance-oriented communication, and adaptive operational processes that align with national health policy objectives [
42,
43]. Compared with other emerging markets, where institutional maturity and digital transformation progress vary, the relative emphasis on promotion and process innovation may differ in both scope and strategic focus [
44]. This underscores the context-specific nature of sustainable marketing innovation in Indonesia’s pharmaceutical sector.
Overall, these findings not only clarify the strategic priorities for sustainable marketing innovation but also demonstrate how Fuzzy AHP can serve as a methodological bridge linking empirical prioritization with theoretical constructs under the Resource-Based View (RBV). This conceptual connection is further elaborated in the following section.
4.1. Implications for Theory
This study advances theoretical understanding of strategic innovation prioritization by explicitly linking expert judgment and fuzzy multi-criteria decision-making to the Resource-Based View (RBV) of the firm. The RBV argues that firms achieve competitive advantage through the development and deployment of valuable, rare, inimitable, and non-substitutable (VRIN) resources [
35,
36]. By applying Fuzzy AHP, the study demonstrates how expert knowledge, an intangible but strategic resource, can be systematically captured and transformed into reproducible priority rankings, thereby operationalizing RBV principles in innovation strategy research. This result is consistent with the literature that emphasizes collaborative alliances among drug discovery firms, biotechnology partners, and academic institutions as crucial mechanisms for building VRIN resources and accelerating sustainable innovation outcomes [
37].
The use of Fuzzy AHP also addresses a key gap in the literature by incorporating uncertainty in expert preferences, which conventional crisp AHP does not capture [
15,
19]. This advantage is particularly relevant in the pharmaceutical industry, where decision contexts involve high uncertainty and multiple stakeholders.
The prioritization outcome, which places promotion and process as the top-ranked dimensions, provides empirical support for the Oslo Manual’s framework that market-facing innovations (product design, promotion, distribution, and pricing) are critical drivers of competitive performance, especially in highly regulated and price-constrained markets [
6,
41]. Similar findings appear in the sustainability literature, where marketing and process innovations accelerate progress toward environmental and social performance goals [
1,
22,
23,
45].
Overall, these findings reinforce the theoretical proposition that, in emerging pharmaceutical markets, prioritizing innovations that directly engage stakeholders and enhance operational resilience generates superior short-term impact and lays the groundwork for long-term sustainable advantage [
34,
38,
39,
40].
4.2. Implications for Practice
The findings offer actionable guidance for pharmaceutical managers and policymakers designing innovation strategies in emerging markets. First, the prioritization results indicate that resources should be allocated preferentially to promotion initiatives that strengthen stakeholder engagement, provide ethical education for healthcare professionals, expand digital marketing channels, and communicate product value transparently [
38,
39]. These activities are critical for generating responsible demand, ensuring appropriate medicine use, and building trust between industry and the medical community.
Second, process improvement programs should be implemented to reinforce supply chain resilience, ensure regulatory compliance, and strengthen quality assurance systems [
34]. Reliable product availability supports promotional efforts and reduces the risk of shortages or compliance breaches that can damage reputation and sales.
Third, investment in product innovation must remain an ongoing priority. Improvements in formulation, packaging, and patient-centric features create differentiation and sustained value in competitive markets [
22,
23,
46,
47]. By simultaneously reinforcing promotion, process, and product innovation, firms can develop an integrated innovation strategy that delivers superior market and social outcomes. In addition, leveraging outbound open-innovation approaches such as out-licensing deals can improve commercialization efficiency and accelerate market access for novel therapies, supporting both business growth and public health goals [
11].
Finally, managers should monitor price, distribution, and organizational innovation as supporting dimensions, applying targeted interventions only when these directly complement the top three priorities. This staged approach promotes efficient use of innovation budgets and aligns with Indonesia’s regulatory and reimbursement environment, where pricing flexibility is limited [
6,
40].
4.3. Limitations and Future Research
This study is subject to several limitations that merit acknowledgment. First, the findings are derived from the judgments of a selected expert panel, which may not fully represent the breadth of perspectives within Indonesia’s pharmaceutical ecosystem. Broadening the respondent base to include policymakers, hospital procurement officers, and patient advocacy groups would enhance both representativeness and analytical robustness. Second, the cross-sectional research design constrains the ability to observe temporal shifts in innovation priorities. Future studies could employ a longitudinal approach that links Fuzzy AHP-derived priorities with empirical indicators such as sales performance, prescription behavior, and market outcomes to validate predictive capability. Subsequent investigations might also explore how outbound open-innovation strategies and desorptive capabilities mediate the relationship between prioritized innovation dimensions and firm performance, drawing on frameworks established for biopharmaceutical outbound strategies [
11].
Third, although this study applies Fuzzy AHP to generate priority rankings, complementary analytical techniques are needed to uncover causal pathways and hierarchical dependencies among innovation factors. Fuzzy Interpretive Structural Modeling (ISM) can be employed to map inter-factor linkages [
48], whereas Fuzzy ISM–MICMAC and DEMATEL analyses help identify driver and dependent variables that most strongly influence innovation-strategy formulation [
45,
49,
50]. Integrating these perspectives would yield a more holistic decision-support framework for both managers and policymakers. Comparative studies across different emerging markets would further clarify whether the prioritization pattern observed in Indonesia is context-specific or generalizable.
Finally, future research could incorporate additional multi-criteria decision-making techniques—such as Fuzzy DEMATEL or Structural Equation Modeling (SEM-PLS)—to investigate directional influences and causal interdependencies among innovation dimensions, thereby enriching causal inference and strengthening the managerial relevance of the findings [
48,
51]. Comparative analyses across emerging markets would further clarify whether the prioritization pattern observed in Indonesia is context-specific or broadly generalizable.
5. Conclusions
This study developed and validated a decision-support model for prioritizing marketing innovation strategies in the Indonesian pharmaceutical industry. Using Fuzzy AHP, expert judgments were systematically captured, defuzzified, and normalized to derive reproducible priority weights for six innovation dimensions: promotion, process, product, price, distribution, and organization. The results indicate that promotion holds the highest priority weight, followed by process and product innovation, suggesting that market-facing and operational improvements are the most impactful levers for short-term performance gains in highly regulated and price-constrained environments [
6,
23,
38,
39,
46]. The robustness of these findings was further verified through a sensitivity analysis. When the fuzzification scale was adjusted by ±10%, the resulting priority weights and ranking order of the six innovation dimensions remained unchanged. This stability confirms the internal consistency and reliability of the Fuzzy AHP model, ensuring that the conclusions drawn are not sensitive to minor variations in expert input or parameter assumptions.
By linking these findings to the Resource-Based View (RBV) [
35,
36], the study provides empirical evidence that intangible resources such as expert knowledge and stakeholder engagement capabilities constitute valuable, rare, inimitable, and non-substitutable (VRIN) assets that drive competitive advantage. These results reinforce the Oslo Manual’s proposition that marketing-related innovations and process efficiency are critical drivers of competitiveness, particularly in emerging economies [
6].
From a practical perspective, the study recommends that pharmaceutical firms allocate a larger share of innovation budgets to promotion initiatives, including ethical education for healthcare professionals, digital engagement channels, and stakeholder communication campaigns, while also implementing process improvement programs to strengthen supply chain resilience and regulatory compliance [
34,
38,
39]. Empirical evidence from the drug discovery sector suggests that strategic alliances and in-licensing partnerships accelerate the translation of research into sustainable commercial innovations, making external collaboration a complementary means of implementing promotion and process innovations in pharmaceutical firms [
37]. At the same time, firms should maintain a continuous product innovation pipeline to ensure differentiation and long-term competitiveness [
22,
23].
5.1. Theoretical and Managerial Contributions
Theoretically, this research advances the literature by integrating fuzzy multi-criteria decision-making techniques with the Resource-Based View (RBV), demonstrating how uncertainty in expert preferences can be incorporated into strategic innovation prioritization models [
15,
19,
36]. It also contributes to sustainability research by illustrating that marketing and process innovations can accelerate responsible market development and enhance health outcomes [
3,
22,
23].
From a managerial perspective, the findings provide an evidence-based framework for decision-makers to allocate resources across innovation dimensions in a manner consistent with Indonesia’s regulatory and reimbursement context. This structured approach supports sustainable business growth by improving patient access, strengthening trust among healthcare professionals, and reducing operational risks.
5.2. Limitations and Future Directions
This study is not without limitations. The expert panel sample size, while adequate for Fuzzy AHP analysis, may not fully represent the diversity of stakeholder perspectives across Indonesia’s pharmaceutical ecosystem. Future research should broaden the respondent pool to include policymakers, hospital procurement officers, and patient advocates to enhance representativeness. In addition, the cross-sectional design limits the ability to observe changes in innovation priorities over time. Longitudinal studies that link Fuzzy AHP rankings to actual sales and market performance would strengthen causal inference. Future research could also integrate Fuzzy ISM, MICMAC, and DEMATEL techniques to model causal relationships and interdependencies among innovation dimensions [
52]. Comparative studies across ASEAN markets would further clarify whether the prioritization pattern identified in this study is generalizable or context-specific.