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The impact of effectuation on small firm buying decisions

Phillip McGowan (Facility of Business and Law, University of Portsmouth, Portsmouth, UK)

IMP Journal

ISSN: 0809-7259

Article publication date: 24 October 2018

Issue publication date: 22 November 2018

702

Abstract

Purpose

The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers.

Design/methodology/approach

Literature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised.

Findings

This paper presents a conceptual model based on propositions relating to how effectuation logic may explain the predilection of small firm owner-managers to select trusted suppliers from within personal and business networks, and to engage on flexible terms. It suggests that supplier relationship decisions made using effectuation logic may enable wider choice of suppliers than the formal processes of large firms.

Research limitations/implications

The findings were developed from a narrative review of literature and are yet to be empirically tested.

Originality/value

By synthesising research findings on small firm buyer behaviour, the IMP interaction approach and effectuation, it has been possible to develop a predictive model representing buyer–seller relationships in the context of small firms which suggests that owner-managers select suppliers in line with the principles of effectuation means and effectuation affordable loss.

Keywords

Citation

McGowan, P. (2018), "The impact of effectuation on small firm buying decisions", IMP Journal, Vol. 12 No. 3, pp. 444-459. https://doi.org/10.1108/IMP-05-2017-0019

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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