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The Role of the Institutional Environment in Marketing Channels

The Role of the Institutional Environment in Marketing Channels Set within the political economy framework, marketing channels literature predominantly has used an efficiency-based task environment perspective and largely overlooked a legitimacy-based institutional environment approach in studying channel attitudes, behaviors, processes, and structures. The purpose of this article is to highlight the importance of the institutional environment and develop a comprehensive conceptual framework that incorporates the institutional environment into current marketing channels research. The institutional environment perspective relies on the primacy of (1) regulatory institutions (e.g., laws), (2) normative institutions (e.g., professions), and (3) cognitive institutions (e.g., habitual actions) in influencing the legitimacy of channel members. Using institutional theory, the authors augment the current task environment approach by developing three institutional processes and their underlying mechanisms and elaborating on how these institutions might influence channel relationships. The article ends by laying out a research agenda and highlighting managerial implications. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Marketing SAGE

The Role of the Institutional Environment in Marketing Channels

Grewal, Rajdeep; Dharwadkar, Ravi
Journal of Marketing , Volume 66 (3): 16 – Jul 1, 2002
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References (212)

Publisher
SAGE
Copyright
© 2002 American Marketing Association
ISSN
0022-2429
eISSN
1547-7185
DOI
10.1509/jmkg.66.3.82.18504
Publisher site
See Article on Publisher Site

Abstract

Set within the political economy framework, marketing channels literature predominantly has used an efficiency-based task environment perspective and largely overlooked a legitimacy-based institutional environment approach in studying channel attitudes, behaviors, processes, and structures. The purpose of this article is to highlight the importance of the institutional environment and develop a comprehensive conceptual framework that incorporates the institutional environment into current marketing channels research. The institutional environment perspective relies on the primacy of (1) regulatory institutions (e.g., laws), (2) normative institutions (e.g., professions), and (3) cognitive institutions (e.g., habitual actions) in influencing the legitimacy of channel members. Using institutional theory, the authors augment the current task environment approach by developing three institutional processes and their underlying mechanisms and elaborating on how these institutions might influence channel relationships. The article ends by laying out a research agenda and highlighting managerial implications.

Journal

Journal of Marketing – SAGE

Published: Jul 1, 2002

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