AMS Review

, Volume 8, Issue 3–4, pp 233–239 | Cite as

The transition from products to connected health: observations and avenues for future research

  • Leyland PittEmail author
  • Sarah Lord Ferguson
  • Pierre Berthon


The transition of ResMed, the world’s leading manufacturer of therapies and devices for Obstructive Sleep Apnea, from a goods producer to an information-intensive firm presents a compelling opportunity for marketing scholars to revisit fundamental issues in strategic marketing’s theoretical past. These issues are still vitally relevant today and spark a host of interesting and important research opportunities for marketing scholars to pursue. In this commentary, we identify three important transformations undertaken by ResMed’s strategic leadership, which have strong ties to classical marketing theories and scholarship. First, ResMed moves from being a goods manufacturer to an information-intensive firm. This raises questions about the value of information that should intrigue marketing researchers. Second, the firm redefines its business, and does this not just once, but as is apparent from the case, on a dynamic basis. There are many avenues for marketing scholars of today to return to and explore in this regard. Third, ResMed makes substantial shifts in organizational culture, and also changes its structure as the result of its transformed strategy. While culture has been reasonably well considered in the marketing literature, the strategy-structure debate has mostly been conceded to strategic management scholars. There are still very fruitful research issues for marketing academics to explore in this regard.


Transition Business transformation Information intensity Business definition Organizational culture Strategy and structure 


  1. Abell, D. F. (1980). Defining the business: The starting point of strategic planning. Englewood Cliffs: Prentice-Hall.Google Scholar
  2. Amburgey, T. L., & Dacin, T. (1994). As the left foot follows the right? The dynamics of strategic and structural change. Academy of Management Journal, 37(6), 1427–1452.Google Scholar
  3. Andrews, K. R. (1971). The concept of corporate strategy. New York: Dow Jones-Irwin.Google Scholar
  4. Barley, S. R. (1986). Technology as an occasion for structuring: Evidence from observations of CT scanners and the social order of radiology departments. Administrative Science Quarterly, 36(1), 78–108.Google Scholar
  5. Barney, J. B. (1986). Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11(3), 656–665.Google Scholar
  6. Berthon, P., Pitt, L. F., & Ewing, M. T. (2001). Corollaries of the collective: The influence of organizational culture and memory development on perceived decision-making context. Journal of the Academy of Marketing Science, 29(2), 135–150.Google Scholar
  7. Blattberg, R. C., & Deighton, J. (1996). Manage marketing by the customer equity test. Harvard Business Review, 74(4), 136–144.Google Scholar
  8. Bommaraju, R., Ahearne, M., Hall, Z. R., Tirunillai, S., & Lam, S. K. (2018). The impact of mergers and acquisitions on the sales force. Journal of Marketing Research, 55(2), 254–264.Google Scholar
  9. Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. New York: John Wiley & Sons.Google Scholar
  10. Chandler Jr., A. D. (1962). Strategy and structure: Chapters in the history of the American industrial Enterprise. Cambridge: MIT Press.Google Scholar
  11. Channon, D. F. (1973). The strategy and structure of British Enterprise. London: Macmillan Press.Google Scholar
  12. Deshpandé, R., & Farley, J. U. (2004). Organizational culture, market orientation, innovativeness, and firm performance: An international research odyssey. International Journal of Research in Marketing, 21(1), 3–22.Google Scholar
  13. Deshpande, R., & Webster Jr., F. E. (1989). Organizational culture and marketing: Defining the research agenda. Journal of Marketing, 53(1), 3–15.Google Scholar
  14. Dyas, G. P., & Thanheiser, H. (1976). The emerging European Enterprise. London: Macmillan.Google Scholar
  15. Frazier, G. L., & Howell, R. D. (1983). Business definition and performance. Journal of Marketing, 47(2), 59–67.Google Scholar
  16. Galan, J. I., & Sanchez-Bueno, M. J. (2009). The continuing validity of the strategy-structure nexus: New findings, 1993–2003. Strategic Management Journal, 30(11), 1234–1243.Google Scholar
  17. Glazer, R. (1991). Marketing in an Information-Intensive Environment: Strategic implications of knowledge as an asset. Journal of Marketing, 55(4), 1–19.Google Scholar
  18. Hall, D. J., & Saias, M. A. (1980). Strategy follows structure! Strategic Management Journal, 1(2), 149–163.Google Scholar
  19. Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: Measurement issues and performance outcomes. Journal of Marketing Research, 37(4), 449–462.Google Scholar
  20. Jaworski, B. J. (2018a). Reflections on the journey to be customer-oriented and solutions-led. AMS Review, 8(1–2), 75–79.Google Scholar
  21. Jaworski, B. J. (2018b). ResMed: The Transition from Products to Connected Health. AMS Review, 8 in print.Google Scholar
  22. Levitt, T. E. (1960). Marketing Myopia. Harvard Business Review, 38(4), 45–56.Google Scholar
  23. Levitt, T. E. (1983). Globalization of markets. Harvard Business Review, 61(3), 92–102.Google Scholar
  24. Lovell, J., & Kluger, J. (2006). Apollo 13. New York: Houghton Mifflin Harcourt.Google Scholar
  25. Lukas, B. A., Whitwell, G. J., & Heide, J. B. (2013). Why do customers get more than they need? How organizational culture shapes product capability decisions. Journal of Marketing, 77(1), 1–12.Google Scholar
  26. Özsomer, A., & Simonin, B. L. (2004). Marketing program standardization: A cross-country exploration. International Journal of Research in Marketing, 21(4), 397–419.Google Scholar
  27. Pavan, R. J. (1976). Strategy and structure: The Italian experience. Journal of Economics and Business, 28(3), 254–260.Google Scholar
  28. Robson, K. E., Pitt, L. F., & Kietzmann, J. H. (2016). Extending business value through wearables. MIS Quarterly Executive, 15(2), 169–179.Google Scholar
  29. Schein, E. H. (1984). Coming to a new awareness of organizational culture. Sloan Management Review, 25(2), 3–16.Google Scholar
  30. Shostack, G. L. (1977). Breaking free from product marketing. Journal of Marketing, 41(2), 73–80.Google Scholar
  31. Ulaga, W. (2018). The journey towards customer centricity and service growth in B2B: A commentary and research directions. AMS Review, 8(1–4), 80–83.Google Scholar
  32. Wei, Y. S., Samiee, S., & Lee, R. P. (2014). The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market. Journal of the Academy of Marketing Science, 42(1), 49–70.Google Scholar
  33. West Jr., A. P., & Wind, Y. (2007). Putting the organization on wheels: Workplace design at SEI. California Management Review, 49(2), 138–153.Google Scholar
  34. White, J. C., Varadarajan, P. R., & Dacin, P. A. (2003). Market situation interpretation and response: The role of cognitive style, organizational culture, and information use. Journal of Marketing, 67(3), 63–79.Google Scholar
  35. Wuyts, S., & Geyskens, I. (2005). The formation of buyer—Supplier relationships: Detailed contract drafting and close partner selection. Journal of Marketing, 69(4), 103–117.Google Scholar
  36. Yarbrough, L., Morgan, N. A., & Vorhies, D. W. (2011). The impact of product market strategy-organizational culture fit on business performance. Journal of the Academy of Marketing Science, 39(4), 555–573.Google Scholar

Copyright information

© Academy of Marketing Science 2018

Authors and Affiliations

  1. 1.Beedie School of BusinessSimon Fraser UniversityVancouverCanada
  2. 2.McCallum Graduate School of BusinessBentley UniversityWalthamUSA

Personalised recommendations