Buying Networks: a Model of Positional Influence in Organizational Buying.

Abstract

A gap exists in marketing theory as to who key players are in organizational buying and how they come to influence decision processes. Toward bridging this gap, this dissertation introduces a theoretical model of decision influence that overcomes the limitations of traditional "small group" approaches. The model is based upon the notion that the social network of interpersonal relationships can be used to explain purchasing processes. A central concept, the buying network, consists of the set of relationships between the people involved in a purchase. The model posits that a person's position in the buying network affects his/her decision influence. More specifically, positions on unique communication channels and positions central to the network are both expected to contribute to decision influence. Exploratory empirical research was used to examine the model across individuals using telephone and personal interviews and sociometric survey data collected from 50 participants involved in one complex procurement decision in each of 4 companies. Qualitative and quantitative analyses involved the use of methods from graph theory, network analysis and Partial Least Squares causal modeling which allowed for the investigation of two important purchasing roles, the gatekeeper and the inside advocate, as well as for rigorous tests of the hypotheses previously amenable only to qualitative analyses. Traditional causal modeling evaluations of the measurement model, the structural model and the overall model supported the theory. There was a strong and significant link between advocacy activities and decision influence, and a weaker but significant link between gatekeeping activities and decision influence. Although the sample size and other data considerations prohibit generalizations to other populations, the research presents strong initial evidence that influence can be explained in terms of interpersonal relationships and communication networks, and more specifically, that network centrality does lead to influence. The results of this research have implications for both the industrial marketing management and selling, and the organizational buying behavior and buying arenas, as well as for marketing theoreticians.