Informal information control in complex technological purchase situations

In this paper, we examine how individuals vary in their ability to control informal information during the purchasing process for an expensive complex technological product in the information technology area. As part of this research process, we use sociometric data from 41 firms to test a structural model of the effects that network heterogeneity and three organizational structure variables have on this type of information control. As hypothesized, increased network heterogeneity reduces an individual's ability to control informal information. Moreover, the structural variables of decentralization, formalization, and spatial differentiation are shown to affect informal information control in the predicted manner. Importantly, we also show that formalization and spatial differentiation affect network heterogeneity. Decentralization, however, was not found to be related to network heterogeneity.