Closing the Marketing Strategy-Tactics Gap: An Institutional Theory Analysis of Pharmaceutical Value Chain - Innovation and Marketing in the Pharmaceutical Industry - page 709

Table 24.2 Comparative analysis of frameworks rooted in consequential and open systems based
view of institutional logics for pharmaceutical marketing
Elements Economic framework Open systems framework

Foundational
elements

Fundamental
objective

Return on marketing
investments

System and organizational
(subsystem) legitimacy gains
from marketing investments

Focal
phenom-
enon

Consummation of market
exchanges

Interdependence and intercon-
nectedness of market
relationships

Foundational
logics

Logics of consequences Logics of consequences and

appropriateness

Market
mechanisms

Creating and extracting
value

Balancing value extraction and
legitimacy gains

Premises Agency Managerial actions are

suffi cient to assert
control to structure
and shape market
exchanges in the value
chain

Managerial actions are insuffi -
cient to unilaterally structure
market exchanges in the value
chain; instead, outcomes of
managerial actions are
infl uenced by system
interdependence

Market state Orderly movement toward

stability and
equilibrium

Disorderly movement toward less
differentiated structures and
possible dissolution

Key questions
and
mechanisms

Guiding
questions

How, when and why do
market-mix instru-
ments infl uence value
chain partners, and
how to optimize return
on these instruments

How, when and why do market
actions enhance or diminish
system and organizational
legitimacy, and how to
enhance the effectiveness of
market actions

Market
concepts

Detailing, sampling,
advertising, and
networks that are
critical to extracting
value from market
exchanges

Contested logics, differentiation,
progressive mechanization,
market dilemmas, and
equifi nality that are critical to
enhancing system and
organizational legitimacy

Market order Emerges through

top-down processes
supported by
market-mix instru-
ments that the market
actors deploy to align
market exchanges with
their favored logics

Emerges in bottom-up, self-
organizing processes that
characterize interactions
among market actors guided
by disparate and usually
confl icted logics making the
process nonlinear, path
dependent, and unpredictable

than a fl eshed out theory itself. We believe that outlining the elements of a theory
with a focus on comparative analysis will likely provoke debate and discourse
essential to guiding future theoretical efforts. We develop the elements in
Table 24.2 in more detail below, and outline the key propositions resulting from it
in Table 24.3 to guide future research.