Impact of Institutional Barriers on International Marketing of Healthcare Services: Elekta in the Emerging Market of South Africa

Healthcare marketing is a complex phenomenon due to the involvement of patients, concern about life situations, and interactions between individuals and firms in the service delivery process. In emerging markets, international healthcare marketing is intricate because of institutional barriers and the influence of cultural factors. This study explores how institutional constraints impact the marketing of healthcare services, focusing on Elekta, a Swedish subsidiary in South Africa. Through a case study approach including observation, interviews, and document analysis the research addresses two key questions. What institutional barriers do healthcare providers encounter in South Africa´s emerging market, and how do they deal with those constraints to build networks and develop marketing strategies? We analyze the role of formal and informal institutional constraints and how the service provider deals with them by developing networks and trust in the local market. The findings suggest that for international marketing of healthcare services, it is crucial to follow local rules and regulations for establishing relationships with authorities and local bureaucracy. It is important to standardize the offering and provide the same quality of service as in developed countries. Collaborations with academic hospitals and local customers, offering access to global expertise and know-how, influence trust building. Additionally, partnerships with complementary firms, using local expertise, adapting to local institutional frameworks, helping with the planning of the service, and providing affordable high-quality solutions are vital for network development and effective marketing strategies. The research emphasizes the role of public organizations, as key market actors, shaping marketing strategies through their focus on equitable healthcare access. To succeed in South Africa´s emerging market managers must overcome institutional barriers, collaborate with public organizations, maintain global standards of care, and contribute to the expansion of the boundaries of the healthcare market.