Paper info: Developing the institutional network approach to markets and business marketing practice
Developing the institutional network approach to markets and business marketing practice
Place of Publication
The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.
Based on a socio-economic perspective and the business marketing reality of emerging country markets,this conceptual paper develops the institutional network approach to markets. The purpose is to compare markets and marketing practices in and between emerging markets as well with mature markets.To give a background to the socio-economic approach developed, other major approaches to the relation between market forms and marketing are discussed, viz. the neoclassical perfect market, market imperfections theory, the market as economic institution, and the market-as-network approach. The latter perspective is developed further by using institutional theory. Based on a combination of four basic rules inherent in every institution, the business marketing practice is found to follow either the efficiency based logic or the legitimacy-based logic. Due to emerging markets being characterized as network societies, three major efficiency-oriented network practices are distinguished.The legitimacy-oriented marketing practice is expressed in the matching strategy and is oriented towards satisfying non-economic goals.