Buying Behavior of Organizations for Software Products: Influence of Environmental Factors

Abstract

The environmental situation for an organization is the environment in which an organization operates.It consists of multiple stakeholders such as governing board members, business competitors, suppliers,customers, the government, etc. They can influence the organization’s decision to adopt an innovation. The influence can ease the organization in adopting the innovation or it can block or affect negatively the organization’s decision to adopt the innovation. Dynamics of the market in which the organization operatesand business competitors will also influence the organization’s decision to adopt innovations.  Customers, Suppliers are sources who will exercise their powers and influence the organization’s decision. Governmentregulation is also equally important and will influence the organization’s decision to adopt innovation. In a nutshell, the environment will influence the organization’s decision to adopt innovations for its business operations.