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RESEARCH PRODUCT

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

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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.