Effects of Internal and External Factors on Organizational Buying Behaviour: A Review of Extant Literature

The nature of industrial products, their value and the heterogeneity of industrial clients have significant effects on the organisational purchasing process. Therefore, marketers need to understand why businesses make purchases, without which they will not be able to respond adequately and in due time to customers’ needs. The purpose of the study was to identify and examine internal and external factors that influenced organisational buying behaviour. Specifically, the study explored the role of the decision making unit and its composition as well as the effects of product brand on industrial purchase decision. The method employed entailed a detailed review of the organisational purchasing behaviour literature over time and space in both developing and developed countries, highlighting key variables that determine industrial buying decisions. The results revealed that individual characteristics, composition and membership of the buying centre, the structure of the firm as well as the environment within which the company operates have significant effects on business to business buying decisions. Furthermore, the brands of products offered by marketers were found to provide significant benefits to buying organisations in terms of value, functionality, performance and overall competitive advantage. Owing to the multitudinous factors that impinge on the organisational buying process, it is recommended that industrial buyers should manage effectively the internal variables within their companies to reduce the risks and uncertainties associated with the ever changing business environment in order to maintain competitive advantage.