5. Looking behind the curtain
Categories, status and the burden of proof in
organizational fields
Giuseppe Delmestri & Beth Goodrick
WU Vienna & Florida Atlantic University
6. Historical Analysis
• 2 cases in 2 countries: beginning 1900s & 1960s
– Italy:
• parliamentary debates
• pharmacy history books
• Interviews with pharmacy historians
– USA:
• Court rulings
• Pharmacy history books
• Newspapers, pharmacy journals,
7. Research question
How do background assumptions affect the
dynamics of categories and their associated
logics within and between organizational fields?
8. Case 1: Chain stores (beg. 1900s)
Retail business
category
Health care
category
?
Corporate
vs.
Professional
logic
9. Case 1: USA (beg. 1928)
Retail
business
category
Health care
Pharmacists’ attempt to protect category by moving
it towards the health care category
10. Case 1: Chain stores (beg. 1900s)
‘[Limiting ownership to pharmacists] creates an
unreasonable and unnecessary restriction upon private
business [and] is a clear and arbitrary invasion of the
appellant’s property rights. … [M]ere stock ownership in
a corporation, owning and operating a drug store, can
have no real or substantial relation to the public health’
(Ruling of U.S. Supreme Court, 1928).
11. Case 1: Italy (1913)
Retail business
category
Health care
category
State protects pharmacy by emphasizing its
professional character
12. Case 1: Chain stores (beg. 1928)
‘No legislation, unless imposing high punishments, is able
to abolish greed for profit, which is natural and
incoercible.” … “[F]ree trade has only one advantage: that
of reducing prices. But are we sure in such a vital issue
like public health, the possibility to save a couple of cents
should be the basis on which we should choose which
system to establish? Human life is worth more than two
or three cents saved thanks to competition.’ (Italian
Parliamentary Debates, 1913).
13. Case 1: Chain stores (beg. 1900s)
Retail business
organization
Health care
organization
Corporate
vs.
Professional
logic
Background institutions place the
BURDEN OF PROOF
and adjudicate visible ‘duel’
14. Case 2: Mass-manufacturing of medications
(1960s)
– Risks transforming community pharmacists into
shop keepers
– Pharmacists attempt to re-professionalize
– US: conflict professional vs. market logics
– Italy: conflict professional vs. state logics
15. Case 2: USA (1960s)
Retail
business
category
Health care category
Pharmacists’ remained a special occupational category in
retail, but lost organizational category status
16. Case 2: Italy (1968)
Retail business
category
Health
care
category
State protects pharmacy again by emphasizing its
professional character
17. Contributions
• To institutional logics perspective
Role of background in adjudicating foreground conflicts
Role of nestedness: field, national and global
• Category research
Organizational fields as industry categories
Class membership of categories societally specific
Let‘s us give you first an impression of how pharmacy is now in Italy and the US.
Outside of the pharmcy you can see names of corporations in the US and the name of a profession in Italy.
Brands versus ‘no logo’
You also see ‘customers’ in the US and you don’t see it in Italy (patients and citizens of the welfare state)
4 big chains in the US (pharmacists as employees); about 18.000 in Italy (one pharmacist one pharmacy)
You see the pharmacy being just a service within a retail store in the US
The pharmacist as the central player in the store in Italy
Even the packaging is different:
Marketing practices appear on packages in the US
Very lean and clinical the packaging in Italy
SUMMARY: corporate and market logics central in the US; professional and state logics central in Italy
YES THEY DID! And we explain how
The visible conflict
The visible conflict
The visible conflict
BURDEN OF PROOF is the form assumed by the CATEGORICAL IMPERATIVE
(elimination of compounding by post WW II scientific advances). Technological shift: Compounding is substituted by dispensers only
The visible conflict
US developed under free enterprise system-
As early as 1880, it was the professional functions of pharmacists that distinguished him from a mere merchant“.
The visible conflict
IL:
Categories:
so far research has highlighted the issue of membership of organizations in categories; we that of categories in classes.
Institutional logics in society contribute to define status extension of categories in assigned classes.