Organizational Buying Decision Research: A Case of Paper Packaging

Abstract

The study aims to confirm influencing factors on organizational buying decision. The survey was conducted among 700 enterprises of various fields such as wood manufacturing and processing, pottery and porcelain, handicrafts and fine arts, with the result of 549 valid responses. The authors tested Cronbach's alpha reliability coefficient, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM)-to measure the relationship between its constructs. The result revealed that there are 5 factors directly influencing positively on the reference group and organizational buying decision: Product, Price, Distribution, Technology, and Environmental Protection Policy. Moreover, this research discovered a positive relationship between the reference group and organizational buying decision and reference group plays a key role as an intermediary or quadratic variable that influences on organizational buying decision. Therefore, it increased the impact of the independent variables on the dependent variable “the organizational buying decision”.