The Effects of Downsizing on Organizational Buying Behavior: An Empirical Investigation

Abstract

To survive in today’s highly competitive markets, many firms are initiating fundamental changes in organizational form and practice. These restructuring efforts are having significant effects on the organization and management of work within customer firms. However, these important changes have been largely ignored in the extant marketing literature. The research presented in this article first describes a general theory of the effects of organizational downsizing. Then, it examines the potential effects of downsizing on buying center structure and purchase participant characteristics. Findings support several of the hypotheses related to the proposed effects of organizational downsizing on the outcome variables of interest.