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Nonmarket environments perspective in organizations
1. Nonmarket environments Perspective
Esteban Pino Coviello
To distinguish between the market and nonmarket environments, and to heighten our awareness of
the embeddedness of firms within a broader set of social and political structures, is this study
approaches. This perspective on business emphasizes the growing importance of the nonmarket
environment and the critical role that nonmarket strategy plays in business. According to this
perspective, the firms that will perform best in the future are those that can compete beyond the
market – those that realize it is no longer a question of whether to engage, but rather howto engage
in the nonmarket environment (Korschun and Smith 2018).
Does a nonmarket perspective change our view of the role of business in society?
In 2018, during the developer festival "Google I/O", the Google's CEO, Sundar Pichai, left to
everybody speechless when he introduced to the world "Google Assistant", a new product of AI.
Pichai showed how this application could make a call to a haircut salon and request an appointment
without any human involvement. The interlocutor, an employee of the haircut salon, never realized
she was talking with robot. Since then, a huge debate has begun on AI and ethic. As society, are we
willing to accept start to interact with a machine without knowing if it is a real person or not? Is that
ethical? As a Hi-Tech distributor, does my company be aware about the destination of the products
like antivirus or powerful servers? Do we have to follow new regulations about which will be the final
use of a technology? Inside of the software industry since their final users are banks, governments
and a constellation of small companies and even the big ones, thus from a nonmarket perspective it
is obvious the change, we need to put an eye on how these technologies will be used.
This perspective has significantly broadened the vision for most of professionals of the role of
business in society. No organization should not be disconnected of the impacts that AI (Artificial
Intelligence) may bring to the world today. The Google Assistant is just an early example of the
ethical and commercial challenges coming.
References
Bach, David, Blake, D. 2016. “Frame or Get Framed: The Critical Role of Issue Framing in Nonmarket
Management.” California Management Review. Yale School Of Management.
https://www.researchgate.net/publication/289999745_The_Critical_Role_of_Issue_Framing_in_Non
market_Management
Colgan, Siobhan. 2019. “How to Journal Your Way to a New Career.” The Coach Space (blog).
March 8, 2019. https://thecoachspace.com/blog/2019/03/08/how-to-journal-your-way-to-a-
new-career.
Korschun, Daniel and N. Craig Smith. 2018. “Companies Can’t Avoid Politics – and Shouldn’t Try
To.” Harvard Business Review. March 7, 2018.
Nazish, Noma. 2017. “Five Reasons to Keep a Journal in 2018.” Forbes, December 29, 2018.
https://www.forbes.com/sites/nomanazish/2017/12/29/five-legit-reasons-to-keep-a-journal-in-
2018/#5473bfd055e1.