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Journal of Marketing.
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Culture
Organizational and
Marketing:Defining the
Research Agenda
Contemporary work on marketing management is grounded implicitly in a structural functionalist or con-
tingency perspective of organizational functioning. However, the field of organizational behavior from
which such a perspective derives has recently developed a major thrust into theoretical modeling and
empirical research on organizational culture. The authors survey this emerging literature on organiza-
tional culture, integrate it in a conceptual framework, and then develop a research agenda in marketing
grounded in the five cultural paradigms of comparative management, contingency management, orga-
nizational cognition, organizational symbolism, and structural/psychodynamism.
\(W HEN Drucker (1954) first articulated the mar- when marketing scholars turned to the behavioral sci-
keting concept, he noted that marketing was not ences for guidance beginning in the late 1950s and
a
really separate management function but rather the especially the 1960s, the study of culture focused ex-
whole business as seen from the customer's point of clusively on understanding consumer behavior, par-
view. In other words, the marketing concept defines ticularly the definition of cultures and subcultures as
a distinct organizational culture, a fundamental shared market segments, culture as communication, the dif-
set of beliefs and values that put the customer in the fusion of innovations, and cross-cultural comparisons
center of the firm's thinking about strategy and op- of international markets (Engel, Kollat, and Black-
erations. well 1968; Zaltman 1965). Subsequent treatments of
Despite this centrality of organizational culture to culture in marketing also have been limited mostly to
marketing management issues, there has been rela- the consumer behavior area.
tively little scholarly study of its impact in a market- Several scholars recently have begun to recognize
ing context. This lack of scrutiny perhaps reflects, as the importance of organizational culture in the man-
Ruekert and Walker (1987) suggest, the relatively agement of the marketing function. Weitz, Sujan, and
greater attention given to consumer than to organi- Sujan (1986) included organizational culture concepts
zational issues in marketing in general. For example, in their development of a model of selling effective-
ness. Parasuraman and Deshpande (1984) suggested
that greater attention be paid to organizational culture
RohitDeshpande is Associate
Professor AmosTuckSchool
of Marketing, along with structural explanations for managerial ef-
of BusinessAdministration,Dartmouth College.FrederickE.Webster, fectiveness. Additionally, heightened concern for is-
Jr. is E. B. OsbornProfessorof Marketingat the AmosTuckSchool, sues of implementation in marketing strategy (Walker
Executive of the Marketing
Director ScienceInstitute,andVisiting Pro-
fessorof Business Administration
at theHarvard BusinessSchool.The and Ruekert 1987) and the development of a customer
authorsaregrateful forcomments on previous versionsof the article orientation within organizations is also raising ques-
by SusanAshford, AjayKohli,ScottNeslin,JamesWalsh,KarlWeick, tions related specifically to organizational culture
andthe JMeditorandanonymous reviewers. Theresearch was sup- (Bonoma 1984; Deshpande and Parasuraman 1986;
portedin partbythe Matthews Fundgrantto theTuckAssociates Pro-
Webster 1981, 1988). In fact, Mahajan, Varadarajan,
gramandbythe Marketing ScienceInstitute.
Kerin (1987) have gone so far as to suggest that the
Journal of Marketing
Vol. 53 (January 1989), 3-15. Cultureand Marketing/ 3
Organizational
4 / Journalof Marketing,January1989
Culture
Organizational /5
andMarketing
6 / Journal
of Marketing, 1989
January
complementary to traditional contingency frameworks pressive, ideational, and symbolic aspects. The three
used to investigate such variables as structure, size, perspectives are called "cognitive," "symbolic," and
"
and technology of an organization (Pugh and Hickson "structural/psychodynamic.
1976), and which in turn are grounded in functionalist In the organizational cognition perspective on or-
theory in sociology (Parsons 1956). Like the com- ganizational culture, the task of the researcher is to
parative management approach, contingency manage- understand what the "rules" are that guide behavior-
ment research is explicitly interventionist. As Smir- the shared cognitions, systems of values and beliefs,
cich (1983a, p. 345) notes, researchers believe that the unique ways in which organization members per-
cultural artifacts "can be used to build organizational ceive and organize their world (Weick 1985). For ex-
commitment, convey a philosophy of management, ample, researchers following this tradition have iden-
rationalize and legitimate activity, motivate person- tified common ideational patterns within American
nel, and facilitate socialization." organizations which they label as "entrepreneurial,"
The comparative management and contingency "scientific," and "humanistic" (Litterer and Young
management views of organizational culture reflect a 1981). Shrivastava and Mitroff (1983) suggest a method
motivation to understand culture as a lever or tool to for identifying the "frames of reference" managers use
be used by managers to implement strategy and to di- in assessing acceptability of new information. Anal-
rect the course of their organizations more effectively, ogous to the cognitive paradigm in much of consumer
to make culture and strategy consistent with and sup- behavior research, this organizational culture perspec-
portive of one another. As Smircich (1983a, p. 346- tive focuses on the mind of the manager and views
7) notes about these approaches, they tend to be "op- organizations as knowledge systems.
timistic" and "messianic" (perhaps as a reflection of In an organizational symbolism perspective, an or-
their structural functionalist nature) and to overlook ganization, like a society, is a system of shared mean-
the likelihood that multiple cultures, subcultures, and ings and symbols, a pattern of symbolic discourse that
especially countercultures are competing to define for provides a background against which organization
their members the nature of situations within organi- members organize and interpret their experience,
zational boundaries. looking for clues as to what constitutes appropriate
behavior (Pondy et al. 1985). Researchers using this
Culture as a Metaphor approach characteristically search for ways in which
Three other provocative ways of thinking about or- organizations can and do "socialize" new members to
ganizational culture are theoretically grounded in an- achieve coordinated action and a sense of organiza-
thropology rather than in sociology. They describe tional identity and commitment. An example is the
culture not as a variable but as a root metaphor for ethnographic study by Smircich (1983b) of the ex-
the organization itself; culture is not something an or- ecutive staff of an unnamed insurance company. Her
ganization "has" but what it "is." In these perspec- work describes the corporate ethos ("if you've got
tives, organizations are to be understood not just in anything that is controversial, you just don't bring it
economic or material terms, but in terms of their ex- up"), organizational slogans ("wheeling together"),
/ 7
CultureandMarketing
Organizational
January1989
8 / Journalof Marketing,
Organizational
Paradigm Marketing Research Implications Methodological Implications
1. Cbmparative Cross-cultural study of standardization vs. Cross-sectional survey research
marketing customization of international marketing programs
management
Research on relative effectiveness of cost-based vs.
culture-based marketing control mechanisms in
different countries
2. Contingency Research on impact of customer needs satisfaction- Cross-sectional survey research
marketing oriented culture vs. stockholder wealth or ethnographic methods
management maximization-oriented culture on market
performance
Relative impact of organizational structure and
culture on innovativeness
Research on making marketing strategy consistent
with culture and structure
Role of CEO in creating and disseminating a
customer orientation
Extent of differentiation of marketing department in
a firm and its impact on "marketing marketing" to
top management
Impact of environmental change on the nature and
effectiveness of brand management structures
3. Marketing Research on the creation, dissemination, and use of Ethnographic or
cognition marketing knowledge in firms phenomenological research
Study of impact of organizational restructuring on
shared marketing cognitions
Research on sources of organizational conflicts
involving marketing and other departments (e.g.,
marketing/R&Dconflicts in new product
development process)
4. Marketing Research on the socialization of new marketing Ethnographic or
symbolism recruits phenomenological research
Impact of strong marketing socialization on
creativity and innovativeness
Study of importance of organizational symbols in
sales transactions
5. Structural/ Research on the historical development of "market- Ethnographic or historical
psychodynamic driven" firms as expression of founders' wills research
perspective in
marketing
dardization and Nestle believing in local market ad- perceived (i.e., where American executives feel un-
aptation-yet both are extremely successful consumer comfortable with the values and operating methods in
goods marketers. a host country).
Though several thoughtful conceptual articles have Clearly the success of any international marketing
been written on the relevance of national culture to strategy depends not only on the extent of its con-
globalization (Levitt 1983), few empirical studies have formity to customer cultural norms but also on the
examined the issue. An important exception is the re- conformity with the values and beliefs of employees
cent work of Gatignon and Anderson (1987) who use in various host countries, as Hofstede's (1980) land-
transaction cost analysis to explain the extent of con- mark survey of the work-related values of 116,000
trol exerted by multinational corporations over their respondents in 40 countries suggests in a broader
foreign subsidiaries. They find that American mul- management context. For example, are marketing
tinationals generally take lower control levels in managers in an East Asian subsidiary of a British par-
countries where a greater "sociocultural distance" is ent company more or less likely than their East Af-
Culture
Organizational / 9
andMarketing
January1989
10 / Journalof Marketing,
/ 11
CultureandMarketing
Organizational
12 / Journal
of Marketing, 1989
January
Culture
Organizational / 13
andMarketing
of Marketing,
14 / Journal 1989
January
Culture
Organizational / 15
andMarketing