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Organizational Culture and Marketing: Defining the Research Agenda

Author(s): Rohit Deshpande and Frederick E. Webster, Jr.


Source: Journal of Marketing , Jan., 1989, Vol. 53, No. 1 (Jan., 1989), pp. 3-15
Published by: Sage Publications, Inc. on behalf of American Marketing Association

Stable URL: https://www.jstor.org/stable/1251521

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Rohit Deshpande & Frederick E. Webster, Jr.

Organizational Culture and


Marketing: Defining the
Research Agenda
Contemporary work on marketing management is grounded implicitly in a structural functionalist or
tingency perspective of organizational functioning. However, the field of organizational behavior f
which such a perspective derives has recently developed a major thrust into theoretical modeling a
empirical research on organizational culture. The authors survey this emerging literature on organ
tional culture, integrate it in a conceptual framework, and then develop a research agenda in market
grounded in the five cultural paradigms of comparative management, contingency management, or
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
really a separate management function but rather the especially the 1960s, the study of culture focused ex-
whole business as seen from the customer's point ofclusively on understanding consumer behavior, par-
view. In other words, the marketing concept defines ticularly the definition of cultures and subcultures as
market segments, culture as communication, the dif-
a distinct organizational culture, a fundamental shared
set of beliefs and values that put the customer in thefusion 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
Rohit Deshpande is Associate Professor of Marketing, Amos Tuck School along with structural explanations for managerial ef-
of Business Administration, Dartmouth College. Frederick E. Webster, fectiveness. Additionally, heightened concern for is-
Jr. is E. B. Osborn Professor of Marketing at the Amos Tuck School,
sues of implementation in marketing strategy (Walker
Executive Director of the Marketing Science Institute, and Visiting Pro-
fessor of Business Administration at the Harvard Business School. The and Ruekert 1987) and the development of a customer
authors are grateful for comments on previous versions of the article orientation within organizations is also raising ques-
by Susan Ashford, Ajay Kohli, Scott Neslin, James Walsh, Karl Weick, tions related specifically to organizational culture
and the JM editor and anonymous reviewers. The research was sup- (Bonoma 1984; Deshpande and Parasuraman 1986;
ported in part by the Matthews Fund grant to the Tuck Associates Pro-
Webster 1981, 1988). In fact, Mahajan, Varadarajan,
gram and by the Marketing Science Institute.
Kerin (1987) have gone so far as to suggest that the

Journal of Marketing
Vol. 53 (January 1989), 3-15. Organizational Culture and Marketing / 3

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next phase of development of the field of strategic nally we discuss specific applications to marketing
market planning must involve a formal integration of problems to provide research directions for program-
organizational culture issues. matic work on the topic. Given the expanse of the
In contrast to the scant attention given to organi- literature, our purpose is to describe briefly each ma-
zational culture in marketing, a major thrust into the- jor theoretical perspective on organizational culture
oretical modeling and empirical research on the topic rather than to provide an exhaustive review.
has occurred in the field of organizational behavior
(Hofstede 1986; Jelinek, Smircich, and Hirsch 1983;
Development of the Field of
Kilmann, Saxton, and Serpa 1985; Sathe 1983;
Schwartz and Davis 1981). As a result, within the past
Organizational Culture: History
and Definitional Issues
10 years, organizational culture has become one of the
most active research areas within the discipline (Al-
As Ouchi and Wilkins (1985) note in a major revie
laire and Firsirotu 1984; Frost et al. 1985; Ouchi and
the development of interest in the concept of cult
Wilkins 1985). In addition, practitioner interest in the
applied to organizational functioning was due to t
topic is evident from the success of books emphasiz-
realization by organizational sociologists in the m
ing the cultural determinants of corporate perfor-
1970s that traditional models of organizations did
mance (Deal and Kennedy 1982; Ouchi 1981; Peters always help them to understand observed disparit
and Waterman 1982), including the major theme of between organizational goals and actual outcom
between strategy and implementation. Most form
comparing the functioning of American and Japanese
firms with culture as a principal explanatory variable
models of organizations incorporated, in one way
(Pascale and Athos 1981). another, systems, structure, and people, but not
ture (Schwartz and Davis 1981). For example, in
Despite the growing interest in organizational cul-
Leavitt's (1964) model, organizations are seen as
ture among behavioral scientists and practitioners, no
strong consensus has formed about a definition of the multivariate systems consisting of four sets of inter-
term. Hence some people have concluded erroneously acting variables: (1) tasks-the work to be performed
that the concept itself is amorphous. The different def- to accomplish goals, (2) structure-systems of com-
initions stem from different theoretical bases for the munication, authority, status, rewards, and workflow,
concept. To provide a basis for further discussion, we (3) technology-problem-solving inventions used by
define organizational culture as the pattern of shared the firm, and (4) people. Culture is a completely dif-
values and beliefs that help individuals understand or- ferent component that also may contribute signifi-
ganizationalfunctioning and thus provide them norms cantly to organizational functioning and may affect the
for behavior in the organization. That is, organiza- other four subsystems as a mediating variable.
tional culture is related to the causality that members In recent studies of difficulties in strategic imple-
impute to organizational functioning. We subse- mentation and comparisons of the performance of
quently note the range of alternative definitions of or-American firms with that of European, Japanese, and
ganizational culture available in the literature. other Asian competitors, researchers began to intro-
The chief objective of our article is to encourage duce concepts of culture as possible explanations for
the development of a stream of research on organi- differences in competitive effectiveness when few dif-
zational culture in marketing. However, an inade- ferences in the structural characteristics of the orga-
quate understanding by marketing reseachers of un- nizations were evident (Pascale and Athos 1981). This
resolved issues in the development of models of line of reasoning began to suggest that models of or-
organizational culture could lead to some false starts, ganizations that did not include culture as a specific
weak integration among various research programs, organizational variable were incomplete (Ouchi and
inappropriate application of concepts of culture, and Wilkins 1985).
inadequate attention to some of the basic issues of re- Despite agreement about the importance of culture
search methodology being confronted by researchers as an organizational variable, consensus about its def-
on organizational culture. We therefore begin by out- inition and measurement is lacking. We define orga-
lining the development of the field of organizational nizational culture as the pattern of shared values and
culture and discussing current controversies in defi- beliefs that help members of an organization under-
nition and measurement in terms that should be useful stand why things happen and thus teach them the be-
to marketing researchers. havioral norms in the organization. However, we also
We first provide an historical perspective on the highlight the variety of culture definitions to show that
development of theory in organizational culture, different perspectives on culture may be highly rele-
drawing on work in anthropology, sociology, and or- vant for different marketing management problems.
ganizational behavior. Then we describe a conceptual These different definitions lead to several theoretical
framework of organizational culture paradigms. Fi- dilemmas in defining and measuring organizational

4 / Journal of Marketing, January 1989

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culture-for example, choosing between definitions tory and norms and values that members believe un-
of culture in both anthropology and organizational derlie climate (the 'why do things happen the way they
studies, the distinction between culture and climate, do') and the meanings organizational members share
the appropriate level of analysis, whether to use sur- about the organization's imperative."
vey or ethnographic measurement, and the distinction
between culture and subcultures, including "clans" and Level of Analysis
"native views." Some scholars view organizational culture as a prop-
erty of the group or organization itself, like structure
Early Definitions or technology. Others view it as something that re-
sides within each individual as a function of cognitive
In a seminal paper by two anthropologists, 164 defi-
nitions of culture were analyzed in detail and the and
re- learning processes. As an individual property,
sults were summarized as a consensus statement that culture is the evaluations people make of the socia
culture "is a product; is historical; includes ideas, pat- context of the organization that guide their behavior.
terns, and values; is selective; is learned; is based upon It is their attempt to "make sense" of the organization
symbols; and is an abstraction from behavior and the Some argue that culture is an exogenous environmen
products of behavior" (Kroeber and Kluckhohn 1952, tal variable, one that cannot be managed but rather
p. 157, quoted by Berelson and Steiner 1964, p. 644). must be accommodated, whereas others see it as a
They found that culture had been defined variously as variable endogenous to the organization (similar to or-
the values and beliefs shared by the members of a ganizational structure), mediating the way in which
society; the patterns of behaving, feeling, and reacting the organization responds to environmental stimuli and
shared by a society, including the unstated premises change. Still others argue that it is both process and
underlying that behavior; learned responses that pre- outcome because it shapes human interactions and is
viously have met with success; habitual and tradi- also the outcome of those interactions (Jelinek, Smir-
tional ways of thinking, feeling, and reacting that are cich, and Hirsch 1983, p. 331). We believe that cul
characteristic of the ways a particular group of people ture is all of these things but that the differences arise
meets its problems; and another word for social real- because of differences in theoretical approach to the
ity, the things people take for granted. concept. We subsequently discuss further whethe
Specifically for the concept of organizational cul- marketing researchers should view culture as an ex-
ture, definitions offered in recent studies include: "... ogenous or endogenous variable, a property of indi-
some underlying structure of meaning, that persists viduals or of organizations, because each perspective
over time, constraining people's perception, interpre- is appropriate depending on the marketing problem
tation, and behavior" (Jelinek, Smircich, and Hirsch being addressed.
1983, p. 337), "a pattern of beliefs and expectations
Survey Research Versus Ethnographic
shared by organization members" (Schwartz and Davis
Research
1981, p. 33), and "the system of . . . publicly and
collectively accepted meanings operating for a given There is also heated debate between scholars who would
group at a given time. This system of terms, forms, use ethnographic methods to study organizational cul-
categories, and images interprets a people's own sit- ture and those who prefer to use techniques of statis-
uation to themselves" (Pettigrew 1979, p. 574). tical inference applied to data gathered through survey
research methods (Ouchi and Wilkins 1985, p. 475-
Culture and Climate
6). Ethnographic techniques often are used for the study
Distinguishing between the terms "culture" and "cli-of organizational culture, whereas surveys are most
common for the study of organizational climate (cf.
mate" as used in the organizational behavior literature
is important because some theorists have confusedJoycethe and Slocum 1984). Critics of the latter approach
two. Culture is a set of shared assumptions andargue un- that the survey techniques themselves are a
derstandings about organizational functioning. Orga- product of culture and thus are culturally biased and
nization climate is a related but different concept. "culture-bound."
Cli- Hampton (1982) attempted to de-
mate relates to members' perceptions about the extentvelop a survey questionnaire on culture based on the
classic work of an anthropologist (Douglas 1982). Any
to which the organization is currently fulfilling their
expectations. Schneider and Rentsch (1987, p. marketing
7) researcher who wants to study culture and
remain sensitive to such methodological issues should
summarize the difference clearly by stating that "cli-
examine Hirschman's (1986) discussion of appropri-
mate refers to the ways organizations operationalize
the themes that pervade everyday behavior-the rou- ate ethnographic methods for marketing research. Our
tines of organizations and the behaviors that get own
re- position is that culture topics in marketing can
warded, supported and expected by organizations and (theshould be studied by both traditional survey re-
'what happens around here'). Culture refers to the search
his- and ethnographic methods. We more specifi-

Organizational Culture and Marketing / 5

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cally relate research topics to methodological ap- ways of coping with experience," she studied tech-
proaches in the marketing applications section. nical professional company employees in the Silicon
Valley of California. One of her principal conclusions
Subcultures, Clans, and Native Views
is that multiple cultures are not simply subcultures such
Another issue is whether organizational culture is pri- as departments of the organization, but may also be
marily and typically a characteristic of the total or- national, regional/geographic, or industry cultures that
ganization, such as a corporation, or whether it is pri- are background context for the organization, or may
marily a characteristic of groups or "subcultures" within be occupational and ethnic cultures that cut across a
the organization. One dimension of this issue is thegiven organization. Among the many interesting is-
extent to which organizations have cultures that are sues that marketing researchers might examine using
distinct from the "background" cultures in which they this "native views" concept of culture are conflict be-
exist. Such background cultures can take a variety of tween sales and marketing departments, cooperation
forms, including departmental subcultures such as between R&D and marketing departments in the de-
marketing, finance, and manufacturing. Wilkins and velopment of new products, and assignment of sales
Ouchi (1983, p. 468), for example, state: "Contraryrepresentatives to customers on the basis of ethnic,
to currently popular notions of organizational culture, regional, or professional background similarity.
we claim that the existence of local organizational cul-
tures that are distinct from more generally shared
background cultures occurs relatively infrequently at
A Conceptual Framework of
the level of the whole organization." Taking what they Organizational Culture Paradigms
call a "utilitarian" view from a transaction costs per- The different conceptions of culture lead to a bewil-
spective, they define three mechanisms-markets, dering complexity in interpretation. To provide the-
bureaucracies, and clans-for regulating exchangesoretical guidance for researchers in marketing, we try
or transactions and achieving the criterion of "rec- to integrate the organizational behavior literature while
iprocity," meaning that the transactions are perceived retaining the important distinctions being made. We
as equitable by the organization members. Markets use refer to Smircich's (1983a) insightful review of the
a price mechanism, bureaucratic relationships estab- various approaches to the study of organizational cul-
lish rights of evaluation and reward, and the clan ture, which she summarizes into five different para-
mechanism socializes the parties in such a way thatdigms. In the first two, one can think of culture as a
they see their objectives as being congruent with those variable and in the others as a metaphor for the or-
of the firm. Such a clan mechanism is one way of ganization itself. Table 1 lists the key theoretical fea-
thinking about organizational culture. A similar view tures of the five paradigms.
has been developed by Lebas and Weigenstein (1986).
Culture as a Variable
To illustrate the operation of the clan mechanism,
Wilkins and Ouchi cite the practice of Japanese firms In the comparative management approach, culture ca
of hiring young recruits, socializing them, and basing be viewed as a variable exogenous to the firm, influ
pay on seniority, not performance. With a strong clan, encing the development and reinforcement of co
members' inclination is to do what is best for the or- beliefs and values within the organization (e.g., a na
ganization. Elaborate systems of performance evalu- tional culture). Such cross-cultural studies of ma
ation and control are not necessary. Wilkins and Ouchi agement typically are motivated by a search for ex
conclude that entire organizations are less likely to de- planations for differences in organizational outcom
velop and maintain a clan mechanism (i.e., "culture") such as job satisfaction in U.S. and Mexican firm
than are functional or professional groups within an (Slocum 1971) or effectiveness, as in the many stud
organization. Therefore, they argue, organizations do ies of Japanese versus American management and the
not often have the richness of a unique culture that is differences based on the differences in Japanese an
characteristic of the paradigmatic cultures studied by U.S. national cultures (Pascale and Athos 1981).
anthropologists. For Ouchi and Wilkins, organiza- In studies with a contingency management per-
tional culture generally is seen best as a characteristic spective, culture is seen as an independent variable
of groups rather than of total organizations. endogenous to the firm, consisting of beliefs and val-
Gregory (1983), in a frequently cited article, like- ues developed by and within the organization (Deal
wise argues that any given organization is likely to and Kennedy 1982; Peters and Waterman 1982). In
comprise multiple cultures, which she refers to as contingency models, measures of corporate perfor-
"native views." She also argues that organizational mance are influenced in significant and systematic ways
culture is essentially a group-based phenomenon. Us- by the shared values, beliefs, identities, and commit-
ing an ethnographic approach, organized around a ment of organizational members. The contingency
concept of culture as a system of meanings and "learned management perspective on organizational culture is

6 / Journal of Marketing, January 1989

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TABLE 1
Theoretical Features of Organizational Culture Paradigms'
Organizational
Paradigm Key Theoretical Features Locus of Culture

1. Comparative Grounded in functionalism (Malinowski 1961) and Exogenous, independent variable


management classical management theory (Barnard 1938)
2. Contingency Grounded in structural functionalism (Radcliffe- Endogenous, independent
management Brown 1952) and contingency theory variable
(Thompson 1967)
3. Organizational Grounded in ethnoscience (Goodenough 1971) Culture as metaphor for
cognition and cognitive organization theory (Weick 1979) organizational knowledge
systems

4. Organizational Grounded in symbolic anthropology (Geertz 1973) Culture as metaphor for shared
symbolism and symbolic organization theory (Dandridge, symbols and meanings
Mitroff, and Joyce 1980)
5. Structural/ Grounded in structuralism (Levi-Strauss 1963) and Culture as metaphor for
psychodynamic transformational organizational theory (Turner unconscious mind
perspective 1983)
aAdapted from Smircich (1983a)

pressive, ideational, and symbolic aspects. The three


complementary to traditional contingency frameworks
perspectives are called "cognitive," "symbolic," and
used to investigate such variables as structure, size,
"structural/psychodynamic. "
and technology of an organization (Pugh and Hickson
In the organizational cognition perspective on or-
1976), and which in turn are grounded in functionalist
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-
the
ment research is explicitly interventionist. As Smir- shared cognitions, systems of values and beliefs,
the
cich (1983a, p. 345) notes, researchers believe that unique ways in which organization members per-
ceive
cultural artifacts "can be used to build organizationaland organize their world (Weick 1985). For ex-
commitment, convey a philosophy of management, ample, researchers following this tradition have iden-
tified common ideational patterns within American
rationalize and legitimate activity, motivate person-
nel, and facilitate socialization." organizations which they label as "entrepreneurial,"
"scientific," and "humanistic" (Litterer and Young
The comparative management and contingency
1981). aShrivastava and Mitroff (1983) suggest a method
management views of organizational culture reflect
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-
ecutive staff of an unnamed insurance company. Her
the organization itself; culture is not something an or-
work describes the corporate ethos ("if you've got
ganization "has" but what it "is." In these perspec-
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"),

Organizational Culture and Marketing / 7

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rituals (the "Monday morning staff meeting"), and other to future managers, is strengthened by the develop-
symbolic processes that help create shared organiza- ment and application of sound theory. We believe that
tional meanings. improving marketing management serves to make
From a structural/psychodynamic perspective, the companies more responsive to customer needs (and,
research goal is to discover structural patterns that link as noted before, a customer orientation is a type of
the unconscious human mind with overt manifesta- organizational culture). Hence, though we distinguish
tions in social arrangements. Researchers see orga- between the first two and the other three paradigms
nizations as a form of human expression rather than of organizational culture on the basis of an instru-
as goal-oriented, problem-solving instruments. An mental-metaphorical
il- classification, we now examine
lustration is the work of Mitroff (1982), who draws all five paradigms in terms of their potential contri-
on Jungian archetypes to suggest a fourfold classifi- butions to the study and improvement of marketing
cation of managerial styles based on combinationsmanagement. of Table 2 summarizes the marketing re-
thinking, feeling, intuition, and sensing. search and methodological implications of the five
The more traditional structural/functionalist views paradigms.
of organizational culture, as embodied in the first two
approaches of comparative management and contin- Comparative Marketing Management
gency management, are more theoretically and meth- Relatively little research, especially empirical, has been
odologically consistent with the organizationaldone so- on cross-national marketing management issues.
ciology perspective in which much marketing Even single-country studies of problems facing mar-
management literature is implicitly grounded. (For an keting managers are scarce and few attempts have been
excellent recent example of this perspective, see Walker made to generalize knowledge about these problems
and Ruekert 1987). They are also consistent with the (or examine the limits of such generalizability). We
implicitly instrumental perspective of much of this lit- see an opportunity for the rigorous application of con-
erature. However, it is vitally important that market- cepts of organizational culture to enhance signifi-
ing researchers, as they read the background literature cantly the research on basic issues of standardization
from organizational behavior, recognize the diverse versus customization of international marketing pro-
conceptual and theoretical perspectives guiding re- grams.
search in that field. For instance, in some specific in- Improved communication technologies and distri-
vestigations, such as those exploring the determinants bution systems, as well as the development of global
of innovativeness in an organization or the processes marketing strategies, have led to a greater need for
by which new sales representatives are integrated into knowledge about marketing management issues that
a salesforce, the cognitive or symbolic perspective on traverse national boundaries (Davidson 1982). How-
organizational culture may be much more relevant. To ever, what little work has been reported in the com-
encourage marketing scholars to pursue such inquiry, parative marketing literature can be classified primar-
we now turn to more specific applications of these ily as cross-national consumer behavior, rather than
theoretical perspectives to marketing management comparative marketing management, research.
problems. We can begin to rectify this omission if we take
as one major avenue of inquiry the success or failure
of multinational corporations (whether American, Eu-
Concepts of Organizational Culture ropean, Japanese, or other) in "exporting" their mar-
Applied to Marketing keting practices. This issue involves the very funda-
Specific theoretical structures might be appropriate for mentals of the globalization controversy. As Quelch
specific marketing problems. In defining the research and Hoff (1986) point out, the basic question in global
agenda for organizational culture in marketing, it makes marketing is not whether or not to "go global," but
sense to try to identify a set of research issues that rather to what degree. The issue addressed here is not
might flow from the organizational culture paradigms. how to tailor marketing programs (including products
Though we cannot be exhaustive in such an endeavor, and communications) to customers, but rather how to
we hope to be provocative in suggesting research di- adapt management policies, programs, and structures
rections that will develop relatively unexplored intel- to local personnel, channel institutions, and organi-
lectual territory in marketing. zations. A comparative management approach is need-
Our specific objective in developing a research ed to examine the specific aspects of a local culture
agenda on organizational culture topics for marketing that necessitate modification/adaptation of marketing
scholars is to contribute to the study of marketing strategy in order for the strategy to be successful. As
management. In this endeavor we are explicitly in- Quelch and Hoff note, the Coca-Cola Company and
terventionist, but are committed to the premise that Nestle have very different approaches to global mar-
management practice, and the teaching of marketing keting-Coca-Cola being a greater adherent of stan-

8 / Journal of Marketing, January 1989

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TABLE 2
Implications of Organizational Culture Paradigms for Marketing Research and Methodology
! l

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&D conflicts 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-
formity to customer cultural norms but also on the
globalization (Levitt 1983), few empirical studies have
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 usein various host countries, as Hofstede's (1980) land-
mark survey of the work-related values of 116,000
transaction cost analysis to explain the extent of con-
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" isent company more or less likely than their East Af-

Organizational Culture and Marketing / 9

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rican counterparts to adopt British marketing pro- methods have been used successfully in several anal-
ogous studies on organizational culture such as that of
grams? An interesting topic in this context is the residual
impact of colonial heritages on the relative rate of dif- Hofstede (1980) and could be adapted successfully to
fusion of European marketing strategies in Asian and marketing inquiries. Further, the polling of managers
African cultures. in several nations about which marketing practices are
Another related topic of interest is the relative ef-successes and failures is well suited to survey meth-
fectiveness of various marketing control mechanismsods.
for different national or regional cultures. Marketing
control has been defined as a system of methods, pro-Contingency Marketing Management
cedures, and devices used by marketing managers to Survey research also might be appropriate (at least for
ensure compliance with marketing policies and strat-the initial exploration) in the examination of market-
egies (Park and Zaltman 1987, p. 599-600). Discus-ing management problems from a contingency cul-
sions of such marketing control systems typically havetural viewpoint. This perspective is likely to be the
been framed in traditional accounting theory involv-most natural one for marketing scholars because much
ing cost and performance variance monitoring (An- marketing management literature is grounded either
thony, Dearden, and Bradford 1984; Hulbert and Toy explicitly or implicitly in a structural-functionalist
1977), yet a comparative marketing management per- paradigm that is the philosophical foundation of the
spective suggests an important alternative mechanism organizational culture perspective. Such work has ex-
for implementing marketing control. Ouchi (1980, p.amined, for example, the impact of organizational
132) provides the illustration of Japanese firms ex- structure (formalization, centralization, and complex-
ercising a form of "clan control," training their em-ity of the organization) on marketing plan utilization
ployees so they need not be monitored closely: "It is (John and Martin 1984) and the performance of or-
not necessary for these organizations to measure per- ganizational buying centers (Spekman and Stern 1979).
formance to control or direct their employees, since An important avenue for research in contingency
the employees' natural (socialized) intention is to do marketing management is to examine the impact of
what is best for the firm." This approach allows si- an organization's values and beliefs on market per-
multaneous discretion and control, with people ex-formance. For instance, one might compare an or-
pressing autonomy within cultural limits. It is an im- ganizational culture emphasizing primarily the satis-
portant alternative to traditional mechanisms of control, faction of customer needs with one emphasizing
which frequently have the counterproductive result ofprimarily stockholder wealth maximization on such
creating resistance among employees who see it as a measures as long- and short-run sales growth, earn-
corrective rather than a monitoring device (Jaworskiings per share, market share, and return on equity.
1988). Lebas and Weigenstein (1986) further suggest The former type of organizational culture is the sub-
that culture control is gradually replacing rules-based ject of growing attention among marketing scholars
control as organizations undergoing productivity de- and practitioners. Webster (1988) points to evidence
clines search for new ways of managing employees. in the business press of companies that have made an
An area of research inquiry for marketing scholarsintellectual commitment to being customer-oriented
is the extent to which such alternative forms of mar- but are finding it difficult to achieve that reorienta-
keting control can lead to equivalent or higher pro- tion. What are the cultural traits, the shared values
ductivity in various customer contact functions. Three and beliefs, that are characteristic of a customer-ori-
such functions are salesforce, distributor, and cus- ented, market-driven enterprise? Initial work has been
tomer service management. Is clan control superior to reported by both academics and practitioners who are
cost/performance-oriented marketing control in these interested in the topic (Drumwright 1987; Kutner 1987;
marketing functions in different countries in which a Ruekert and Naditch 1987; Sakach 1987). Part of the
multinational firm operates (e.g., in monitoring sales- difficulty of conducting such research is in operation-
force performance in France and Germany)? Does this alizing measures of organizational culture. Examples
superiority vary not only by country but by region (e.g., of how it might be done are provided in the recent
are there southwestern and northeastern differences work of an organizational sociologist (Reynolds 1986)
within the U.S. in terms of the relative effectiveness which, though preliminary, provides directions for scale
of accounting-based versus culture-based marketing development that are of interest to marketing re-
control mechanisms in distribution channel manage- searchers.
ment)? A related research study could examine the impact
Because each of the three research topics noted is of both cultural and structural measures in explaining
grounded in the comparative management perspec- a dependent variable of interest (Davis 1984). For in-
tive, it seems sensible to at least begin the empirical stance, one could examine the influence of organi-
inquiry by using survey research methods. Those zational values and beliefs along with organizational

10 / Journal of Marketing, January 1989

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formalization and centralization on innovativeness should be studied within an evolutionary perspective.
(Cherian and Deshpande 1985). The premise would
The role might be seen as being more crucial for SBUs
be that neither structure nor culture per se would inen-mature, fragmented industries with greater com-
courage greater innovativeness as much as would the petition in relatively undifferentiated commodities than
interaction between a particular set of cultural beliefs
in new, highly differentiated industries with patent
and a specific kind of organizational structure. protection and relatively little indirect competition.
This last issue is important to scholars in both or- Also relevant to contingency marketing manage-
ganizational behavior and strategic management. ment is the study of a particular organizational form
Schwartz and Davis (1981) argue that organization
as a cultural phenomenon-product/brand manage-
structure and culture must be balanced and internally ment. A focus on how environmental changes might
affect the relative efficiency of product management
consistent and also must fit strategy if that strategy is
to be implemented. They point to the mismatchasof an expression of organizational culture might be the
strategy, structure, and culture as the reason for the basis for such an inquiry. This research topic is es-
failure of former President Walter Spencer's plan pecially
to salient for consumer goods firms currently
change Sherwin-Williams Company from a produc- faced with increased retailer control of the distribution
channel, accelerated sales promotion activity, and
tion to a marketing orientation and as a major reason
consequently decreased brand loyalty.
for the difficulties in integrating the merged Rockwell
and North American companies. Further, Wheel-Though survey research methods traditionally have
been used to examine contingency management issues
wright (1984) notes in a perceptive article on the his-
tory of strategic planning that an overly analyticalin marketing, combining them with ethnographic
strategic approach that did not take into account man- methods might be appropriate in investigating specific
agers' values and beliefs helps to explain both the fail-topics. For instance, an understanding of the role of
ure of Texas Instruments in implementing its strategic a CEO in implementing a customer/marketing ori-
plans and the success of Hewlett Packard, which took entation in an organization might involve a field in-
the opposite approach. Wheelwright describes suchvestigation
a with the extensive note taking, document
value-based incremental approach to strategic plan- collecting, and personal interviews that characterize
ning as one in which the beliefs of managers and the typical anthropological study. However, to gen-
workers in a firm are the key to setting its long-term eralize across firms and/or industries it might be ap-
direction, taking precedence over the actions of com- propriate subsequently to develop a survey research
petitors and the structure of its product markets. questionnaire
He to detect common patterns or themes.
cites the work of Quinn (1980) on logical incremen- We should add that ethnographic methods are not sin-
talism as being a good example of this approachgle-firm in restricted. Gregory's (1983) study of "native
the strategic management literature. views" in Silicon Valley firms is an excellent example
Most literature on organizational culture treatsofitthe kind of research that can be done in this area.
as a top-down phenomenon with a critical role being
Marketing Cognition
played by the CEO (frequently in conjunction with,
or as a member of, a founding family) in both estab- Among the metaphorical views of organizational cul-
lishing cultural norms and overseeing their diffusion ture, the organizational cognition perspective suggests
in the firm (Schein 1984). Hence, an interesting topic several interesting research directions. In this para-
for research is the role of the CEO in developing and digm, culture is seen as a metaphor for organizational
implementing a customer orientation in a firm. The knowledge systems with shared cognitions.
arguments of Wilkins and Ouchi (1983) and our pre- Myers, Massy, and Greyser (1980), in a major
liminary field research suggest, however, that it may MSI/AMA report on marketing knowledge develop-
be more productive to study culture at the SBUment, or reported little diffusion of marketing concepts,
divisional or even departmental level as it relates to models, and theories at the line manager level. Few
the development of a customer-oriented view of the researchers have taken up this issue for empirical in-
business. vestigation, but it is a topic for which an organiza-
A related topic in contingency marketing manage-tional cognition perspective might prove helpful. Re-
ment is the role of the marketing department in ancent work on the notion of an "organizational memory"
SBU. Is there an optimal degree of differentiation of(Walsch and Ungson 1988) suggests several reasons
"marketing" as a separate, distinct subculture withinwhy scholars in any field including marketing might
the business unit? We can think of the marketing de-investigate this area. Beyond the obvious need to un-
partment creating resistance if its role is perceived asderstand the impact of marketing theory and model
being too great, but being unable to function as a change development on practitioners, it is important to un-
agent within an organization if its role is perceived asderstand the process by which marketing knowledge
being too slight. The role of the marketing department resides in an organization where managers have great

Organizational Culture and Marketing / 11

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task mobility. A firm that rotates managers through a Marketing Symbolism
series of positions and functions might want to ensure
that core marketing knowledge is not lost in the ro- The fourth cultural paradigm, organizational symbol-
tation (a problem that is accentuated when a key man- ism, is rooted in both symbolic anthropology and
ager leaves the firm). This area is of current concern symbolic organization theory. Marketing scholars
because of the restructuring occurring in recently working in this area would search for patterns of sym-
merged or acquired corporations. What constitutes bolic discourse where culture is a metaphor for shared
"shared marketing cognitions" in such organizations? symbols and meanings. The most common method-
How are they affected during merger and acquisition ological approach has been ethnographic, though cer-
activity? tain inquiries might be pursued by survey research
Another interesting research area that could be ex- methods.
amined from an organizational cognition perspective A major topic for research in this area is marketing
is organizational conflict involving marketing. One socialization. Both recruitment and training of new
could explore, for instance, the "thought worlds" of marketing and sales personnel are culture-related ac-
managers as organizational behavior scholar Dough- tivities that might be interpreted in terms of the par-
erty (1987) has done in her study of marketing/R&D ticular symbols attached to both formal and informal
conflicts in the new product development process. Such socialization. PepsiCo Inc., for example, is known for
an inquiry would center on understanding how dif- a corporate culture that encourages internal competi-
ferences in the world views of different groups or de- tiveness among marketing managers as a simulation
partments would help or hinder the enactment of mar- of the competitiveness in the industries in which it
keting decisions. This approach can be applied usefully operates. Coca-Cola, in contrast, is known for a much
to several of the other subfunctional divisions, in- more conservative, traditional corporate culture where
cluding marketing versus sales. internal consensus is deemed important in order to
Though not taking a cultural perspective, Desh- present a united front in the marketplace. These two
pande and Zaltman (1984) suggest that differences in packaged goods companies derive a substantial por-
the perceived use of market research information can tion of their overall revenue from the same product
be explained by a "two-community theory" of differ- categories, but their procedures for employee social-
ing backgrounds of marketing researchers and man- ization would be extremely different.
agers. Their work could be reexamined from a mar- In some respects, personnel selection is the single
keting cognition perspective. Similarly Zaltman (1987), most crucial human resources decision in manage-
using a theories-in-use approach with a repertory grid ment and yet is almost never studied by marketing
method, has attempted to describe the knowledge sys- scholars. To work together as a team, marketing per-
tems of retail buyers. The underlying theme in these sonnel need to understand not only their own jobs and
studies is to uncover the "grammar" or epistemolog- their interrelationships to the jobs of others, but also
ical basis for marketing decisions-what it is about the values, norms, and ideologies of the entire com-
the ways marketing managers and others interpret their pany and of the departmental subunit. The organiza-
world that explains why they take certain actions (which tional symbolism perspective can be useful in inter-
might frequently be in conflict with those taken by preting the culture, especially for well-established firms.
others). Zaltman's approach is very much in the tra- As Schein (1984, p. 10) notes: "Because culture serves
dition of cognitive organizational behavior scholar the function of stabilizing the external and internal en-
Wacker (1981), who has suggested using the reper- vironment of an organization, it must be taught to new
tory grid for diagnosis and intervention. members. It would not serve its function if every gen-
As in the last example, researchers working on eration of new members could introduce new percep-
marketing cognition issues might find methods such tions, language, thinking patterns, and rules of inter-
as the repertory grid useful in mapping the cognitive action. For culture to serve its function, it must be
rules being used by managers. Traditionally, how- perceived as correct and valid, and if it is perceived
ever, the organizational cognition literature has been that way, it automatically follows that it must be taught
grounded in ethnographic anthropological method. The to newcomers."
objective is to get as much depth as possible in un- An organizational symbolism perspective might be
derstanding organizational knowledge from the orga- helpful in understanding the dilemma of how to so-
nizational actors' perspective, thereby sacrificing gen- cialize newcomers into the current organizational or
eralizability to some extent. Though marketing scholars marketing department culture without diminishing the
may or may not choose to make the same method- creativity and innovativeness that different perspec-
ological tradeoff, they should be aware of the most tives frequently bring. Does a strong program of mar-
common research methods being used by organiza- keting socialization dampen creativity of expression?
tional behavior researchers who have worked with this Perhaps this is one of the major issues to be addressed
paradigm. in studying brand management systems in well-estab-

12 / Journal of Marketing, January 1989

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lished firms. It is an important issue to practitioners maining paradigms (marketing cognition, marketing
as well, because chief executive officers have com- symbolism, and structural/psychodynamism), culture
mented on declining innovativeness and entrepreneu- is examined at the individual-manager level.
rial thinking on the part of marketing managers
(Webster 1981).
A final avenue for research on marketing sym- Summary and Conclusion
bolism is in the domain of personal selling. There is
a literature on the importance of brand symbols to Marketing scholars seeking to develop concepts of or-
consumers (Levy 1959). It would be interesting to look
ganizational culture and apply them to marketing
at the importance of organizational symbols from a problems face two challenges. First, they must delve
sales perspective. Most of the selling literature centers
into the rapidly developing literature on organiza-
tional culture and understand the various definitional,
on formal terms of a transaction in evaluating value,
conceptual, and methodological issues (outlined briefly
but organizational culture and other less tangible as-
here). For their research to be credible, they must
pects of a vendor firm are also critical for a potential
buyer. For example, not only the technical capabili-
clarify, and defend, the choices they have made in
addressing these issues. Their choices will include the
ties of IBM's Personal System/2 but also the sym-
theoretical approach preferred and the methodological
bolic aspects of the IBM culture are transmitted to the
approach used. Second, they must develop theoretical
buyer at the point of sale. How much of the variance
structures that relate carefully defined cultural vari-
in purchase decisions can be explained by such ex-
ables to the marketing phenomena they are trying to
changes of organizational values?
understand.
The importance of understanding organizational
Structural/Psychodynamic Perspective culture issues in a marketing management context is
in Marketing undeniable. For instance, of the priority research top-
ics listed in a recent Marketing Science Institute (1988)
The fifth culture paradigm is grounded in both the
structuralism of Levi-Strauss (1963) and transforma- publication, the MSI cites an urgent need for research
on "developing and maintaining a customer and mar-
tional organization theory (Turner 1983). Here orga-
ket focus" (p. 7)-implying an understanding of both
nizational culture is seen as a metaphor for the un-
the role of marketing in an organization and how a
conscious mind and the organization itself is a form
company can become more customer-oriented. Ad-
of human expression.
ditionally, the MSI report calls for more research on
Perhaps the most interesting research question is
integrating a customer orientation with a focus on
how a company develops as an expression of the will
quality as a management process. We consider these
of its founders. Though little use has been made of
and related issues in our discussion of how the five
historical research in marketing (Savitt 1980), this
organizational culture paradigms affect marketing re-
question would be excellent for application of a set of search.
methods using archival data to interpret how an or-
The literature we review holds tremendous prom-
ganization grows. Especially pertinent here would be
ise for marketing scholars who want to begin this ex-
the study of firms we think of as being "market-driven,"
ploration. It is time to move beyond structural expla-
companies such as Procter & Gamble in consumer
nations of marketing management, of "what happens
packaged goods, General Electric in durable goods,
around here," to an understanding of "why things
IBM in industrial products, and American Express in
services. What is it about the founders of these com- happen the way they do." The potential is great for
both building richer theories of marketing manage-
panies that was translated into specific organizational
ment and addressing significant problems of market-
arrangements conducive to being market-driven? What
ing practice.
is it that drives certain inventors and entrepreneurs to
create organizations to market their products while
others are content to have their ideas exploited?
The five organizational culture paradigms provide
many directions for research on topics relevant to
marketing management. Note that the levels of in-
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