Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The impact of effectuation on small firm buying decisions

The impact of effectuation on small firm buying decisions The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers.Design/methodology/approachLiterature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised.FindingsThis 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/implicationsThe findings were developed from a narrative review of literature and are yet to be empirically tested.Originality/valueBy 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IMP Journal Emerald Publishing

The impact of effectuation on small firm buying decisions

IMP Journal , Volume 12 (3): 16 – Nov 22, 2018

Loading next page...
 
/lp/emerald-publishing/the-impact-of-effectuation-on-small-firm-buying-decisions-0k5RnkYiQp
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2059-1403
DOI
10.1108/imp-05-2017-0019
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers.Design/methodology/approachLiterature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised.FindingsThis 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/implicationsThe findings were developed from a narrative review of literature and are yet to be empirically tested.Originality/valueBy 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.

Journal

IMP JournalEmerald Publishing

Published: Nov 22, 2018

Keywords: Networking; Effectuation; Small firm; Buyer–supplier relationship; Affordable loss

References