Organizational configuration as an antecedent to buying centers' size and structure

Abstract

Purpose

Recent research suggests that organizations cycle through a small set of possible configurations. Each buying center as an informal organization within one of these four viable types of structure will exhibit distinct configuration attributes. Describing and predicting the buying center's configuration as indicated by organizational structure are the purpose of this research.

Design/methodology/approach

Data collected via mail survey are used to classify organizations into hypothesized segments via K‐means cluster analysis. Buying center structure is contrasted and tested for differences using MANOVA, MDA, and post hoc t‐tests.

Findings

The extensivity or level of participation in the buying center is significantly related to the type of organization. Organizational formalization and centralization are consistently related to the formalization and centrality of the buying center.

Research limitations/implications

The generalizability of the findings is limited as the sample is from a single US geographical area. Buying center participation and structure may be a function of the product. Research findings are limited to a specific service.

Practical implications

Awareness of the structure of the buying center is useful for marketing and sales managers. This knowledge can guide their efforts to allocate scarce sales resources at appropriate levels for business customers.

Originality/value

This paper closes a gap in the business‐to‐business marketing literature about antecedents to the buying center's structure.

Citation

“Andy” Wood, J. (2005), "Organizational configuration as an antecedent to buying centers' size and structure", Journal of Business & Industrial Marketing, Vol. 20 No. 6, pp. 263-275. https://doi.org/10.1108/08858620510618101