Emergent Buying Centers

Improved Essays
A buying center is a system that deals with the decision-making process, of an organization, in purchasing a certain product or service. The major topic discussed in the article, “Information Control and Influence in Emergent Buying Centers”, deals with the importance of information control and “how buying center members influence the supplier selection process” (Dawes, Dowling, and Lee 55). The author’s goal is to understand the contribution of information control, personal attributes, and firm characteristics in determining an individual’s influence in a buying center. The research conducted by the authors involves surveying firms that purchased a new digital data system called Private Branch Exchange (PBX). The unique finding in this article …show more content…
According to the article, “the control of information in a group such as a buying center can occur because of the manager’s structural position” (56). This enables a person in a higher organizational position to limit other individuals from having an influence in the supplier selection process. Two personal attributes that can also affect an individual’s influence are stakeholding and innovative orientation. A person’s individual stake in a company can determine how much that person is at risk based on the decision’s of the company. Therefore, an individual with a high stake in the company will ultimately want more of an input in the decision making process. This also can lead to that individual having more power and control over the flow of information throughout that company since they are a major contributor to the company. Innovative orientation is a concept dealing with how individuals deal with solving problems, and mainly focuses on the originality of the individual. The article states, “that more innovative people are often more central, and thus influential, in their social networks” (60). Dawes, Dowling, and Lee, hypothesized that both stakeholding and innovative orientation will increase an individual’s control over information flow and the supplier …show more content…
Stakeholding was the most critical of the individual variables because it not only had a direct effect but also an indirect effect. It indirectly increases the individual’s participation causing them to move into a more authoritative position and ultimately gaining more control over the flow of information within the company. This in turn gives them a greater capacity to influence the buying center decision. The major finding with a decentralized firm was that even though they have less control over information “there may be a lesser need to control it because he or she already possesses the required influence through developed authority” (Dawes, Dowling, and Lee 66). This statement correlates with a formalized firm in the fact that higher up buying center members have direct influence in the supplier selection

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