An Institutional Theory of Exchange in Marketing

Abstract

Based on an institutional analysis, develops a political economy framework to study exchange of all types. Shows that the institutional context either encourages or inhibits various types of exchanges. Identifies four types of institutions: households, private firms, public enterprises, and government institutions. Three main types of exchanges exist between and within these institutions. These include: market exchange, redistributive exchange, and reciprocal exchange. Argues that the resource profiles of the institutions, the prevailing norms of legitimacy in the society, and the nature and strength of the control systems determine exchanges outcomes. This approach is particularly useful for understanding strategic, social, global and macromarketing processes, especially in the context of comparative marketing.