Institutional and Government Markets: Strategies and Initiatives in the Digital Age

Institutional and Government Markets: Strategies and Initiatives in the Digital Age

DOI: 10.4018/IJPADA.20210101.oa7
Article PDF Download
Open access articles are freely available for download

Abstract

Institutional and government markets constitute not-for-profit market with the main objective of general welfare of people. Such markets are characterized by low budgets and captive patrons. Companies serving institutional markets establish and maintain separate departments to meet the specific requirements. Governments are the major and bulk buyers of goods and services in all countries. Government organizations, appointed by governments, have specified procedures which suppliers should follow. Suppliers experience a number of issues while dealing with government organizations. Suppliers require following formal procedures. The procedures may be time-consuming and suppliers may face bureaucracy. Governments adopt digital measures and adopt online buying to streamline the processes, to shorten the time required, and to overcome a number of hurdles. Companies dealing with institutional and government markets should be aware about all these aspects to succeed in the long run and also contribute to the growth of institutional and government markets.
Article Preview
Top

1. Introduction

Institutional and government buyers are the major stakeholders in the market. Institutional and government organizations possess aspects which are similar to business markets and adopt similar strategies for buying as business buyers (Khan, 2016). Although the buying practices are similar, institutional and government organizations form a market which is different from business markets. These organizations possess certain characteristics and needs which are unique and which make them different from business buyers (Kübler & Lefèvre, 2018). Institutional and government organizations constitute not-for-profit markets. The basic purpose of these organizations is to serve people in their care. The main objective is not to earn revenues and to generate profits like entities in business markets. Although they are not-for-profit organizations, their specific characteristics are important to those entities who conduct businesses with them (Stuart, Larsen, Carvallo, Goldman, & Gilligan, 2016). Understanding the nature and the characteristics of institutional and government markets and the strategies and initiatives adopted by institutes and governments is important because the size of such markets is large, the revenue generation is substantial, and such markets have diverse stakeholders including the general public. The efficiency and effectiveness of institutional and government markets is linked directly with the welfare of the general public. The welfare of the general public depends to a large extent on the performance of such organizations and markets (Fast, 2018). Analysis of the performance will not be possible unless the markets are studied in-depth. So, it becomes imperative to study and analyze institutional and government markets. The study discusses about the various aspects of institutional and government markets. It also focuses on strategies and initiatives taken by institutional and government organizations. Advances in information technology and the widespread usage of the internet allow institutional and government markets to perform their operations faster and better (Winston & Weinstein, 2016). The roles of the internet in making the buying process for government markets faster, streamlined, and more effective, are highlighted. A study of institutional and government markets and understanding the characteristics of and analysis of the strategies adopted by institutional and government markets are important because these two markets cater to the requirements of a number of buyers.

The above discussions highlight the importance of institutional and government markets. They have specific characteristics and requirements which are unique to such types of markets only. So, these types of markets require a thorough analysis. A conceptual analysis of the literature on institutional and government markets will help analyze and understand such markets better. However, there are few studies which have conducted a conceptual analysis of such markets. The study aims at addressing this research gap.

The objective of the study is to conduct a qualitative and a conceptual analysis of the institutional and government markets and their stakeholders. The study refers to the literature on these types of markets and aims to conduct an in-depth analysis.

The methodology adopted is a qualitative and a conceptual analysis of the literature on institutional and government markets. Latest literature on institutional and government markets was referred to so that the analysis is relevant in the present-day context. The study does not collect primary data on institutional and government markets and does not conduct an empirical analysis.

The novelty and the contributions of the study lie in the fact that a qualitative and a conceptual analysis of the literature might provide deeper insights about institutional and government markets than other types of analyses. The various aspects and issues of institutional and government markets are highlighted. Institutional and government markets will have stakeholders from diverse fields. These different stakeholders will be able to appreciate such issues and the complexities associated with the markets. They will also be able to appreciate the various aspects unique to such markets and the modifications which need to be incorporated in their strategies while serving institutional and government markets. The preparedness will allow the suppliers of such markets to meet the requirements of the markets and serve the markets better.

The study is structured as follows:

Complete Article List

Search this Journal:
Reset
Volume 11: 1 Issue (2024)
Volume 10: 1 Issue (2023)
Volume 9: 1 Issue (2022)
Volume 8: 4 Issues (2021): 2 Released, 2 Forthcoming
Volume 7: 4 Issues (2020)
Volume 6: 4 Issues (2019)
Volume 5: 4 Issues (2018)
Volume 4: 4 Issues (2017)
Volume 3: 4 Issues (2016)
Volume 2: 4 Issues (2015)
Volume 1: 4 Issues (2014)
View Complete Journal Contents Listing