Managing risks in organizational purchasing through adaptation of buying centre structure and the buying process

Abstract

Although risk issues have extensively been explored, studies on risk perceptions and risk management from a buying centre perspective are surprisingly few. In this qualitative study, purchase-related risk management by adapting buying centre structures and buying processes was examined through semi-structured interviews among 15 business organizations. The findings suggest that although organizations perceive risks in highly similar ways, notable industry-specific differences exist in how risks are tolerated and managed. In the case of heightened perceived risk, high-tech companies were found to rely more on informality and decentralization of decision-making in risk management, whereas more traditional manufacturing organizations managed risks by increasing centralization and formality.