Strategic Imperatives in Heterogeneous Markets and Customer Cultures in the MENA Region

The 2014 precipitous fall in oil and gas prices by 50% or more set in motion cuts in the healthcare budget by some governments in the Middle East and North Africa (MENA) region, often in excess of 30%. The aim of this multiple case study was to explore the strategies of international pharmaceutical companies in the MENA region after the 2014 decreases in the healthcare budgets, following the decline in oil and gas prices. The research involved interviews of 6 middle and executive managers working in 2 international pharmaceutical companies located in Dubai, United Arab Emirates. The cultural intelligence theory constituted the conceptual framework for this study and aided in gaining insight into the challenges associated with implementing marketing and organizational strategies by international pharmaceutical companies in the MENA region. Study participants were required to have 5 years of experience in planning and implementing marketing strategies in the MENA region. The findings from this study may reflect important internal organizational adaptation enacted by successful international pharmaceutical companies. in marketing to culturally diverse customers of the MENA region in the reduced healthcare budgetary environment. The important themes emerging from this study included: (a) recognition of culture and diversity, and (b) the importance of training and learning agility. The results of the study may advance the agenda of improving healthcare of the residents of this region as pharmaceutical and healthcare knowledge benefits the delivery of human health services. © 2019 Elixir All rights reserved. Elixir Marketing Mgmt. 134 (2019) 53600-53614 Marketing Management Available online at www.elixirpublishers. com (Elixir International Journal) Ali Abou Abbas and Lionel de Souza / Elixir Marketing Mgmt. 134 (2019) 53600-53614 53601 by successful international pharmaceutical companies in the MENA region during periods of declines in healthcare budgets with the declines in oil and gas prices. The target population consisted of two international pharmaceutical companies, in Dubai, the United Arab Emirates, which enacted marketing strategies and achieve profitability despite the economic upheavals. The verification of successful marketing, strategic outcomes and implementation were assessed by examining international pharmaceutical financial reports in the MENA region. Managers provided useful information on internal organizational awareness and marketing strategy implementation which aided in understanding the lifestyle and needs of the MENA region communities, as did review of pertinent literature by Fontana, Saster-Merino, and Baca, (2015) and others. Pharmaceutical companies are directly associated with the quality of healthcare by offering therapeutic and treatment options which contribute to saving lives and improving the quality of it. The role pharmaceutical organizations play is crucial in improving human health and in the contribution to local economies through the creation of jobs, amelioration in existing human welfare and contributing to positive social change (Li & Tan, 2013). Research Question The overarching research question for this study was: What cultural factors impact the implementation of marketing strategies for international pharmaceutical companies in the MENA region? The following principal interview questions served to explore the successful regional marketing strategies implemented by pharmaceutical firm managers in the MENA region in the face of lowered healthcare budgets, consequent to the oil and gas price declines: 1. From your experiences in the MENA region, how, if at all, does language and culture affect the success of marketing strategy planning and implementation? 2. What approaches in terms of training and development have facilitated the implementation of suitable marketing strategies in the MENA region? Conceptual Framework The cultural intelligence theory (CQ) developed by Earley and Ang (2003) was chosen to underpin this study. The CQ theory representing the conceptual framework is based on Sternberg and Detterman's (1986) integration of the loci of intelligence residing within the person. CQ has been defined as the capability of individuals to function effectively in a variety of cultural national, ethnic, organizational, and generational contexts (Eisenberg et al., 2013). Magnusson, Westjohn, Semenov, Randrianasolo, and Zdravkovic (2013) stated that CQ knowledge had a significant effect on the formulation and execution of international marketing strategies. Many researchers have found that CQ has some similarities with various approaches to cultural competence, but differs, in that it can serve as a theoretical reference to understand and solve problems relating to effective adaptation of employees to different environment beyond just understanding of different cultures (Ng, Van Dyne, Ang, & Ryan, 2012). Cultural intelligence (CQ) concepts have served as a helpful reference to understand the ability of the organizations' managers to implement marketing strategies and align it with internal and external cultures. Key Terms Defined in Context of Study The following are key terms used in this research are defined to acquaint readers in the meaning and context used in this study: Cultural intelligence (CQ): Peterson (2004) defined CQ as the ability to engage and interact with individuals who are culturally different (Putranto, Gustomo, & Ghazali, 2015). Marketing strategy: A process used by a company to focus on optimal opportunities and achieve maximize profits potential and sustain the business. Mechanisms of a successful marketing strategy includes proper planning, implementation, evaluation, and control (Ramaseshan, Ishak, & Kingshott, 2013). Multicultural team (MT): The terms and the acronym MT refers to a group of individuals from different cultures working together on activities that span national borders and thus represents a complex environment and affects on team's performance (Lisak & Erez, 2015). Pharmaceutical companies: Companies engaged in research, development, manufacturing, and marketing of drugs for human use (Signore, 2016). Transformational leadership: A trait and ability of leaders to take actions to try to increase their followers' awareness of what is right and important (Abbasi & Zamani-