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Debo Qiu

DBA Graduate - 2013

Thesis title

An Analysis of Small Enterprises' Conformity in Choice of Form of Payment: A Theoretical and Empirical Research into Engineering Machinery Purchasers


Wei Lu
As the heat of studies on small and medium-sized enterprises (SMEs) turns up over the recent years, there has been a growing body of literature which studies the choice of payment methods by SMEs; this body of literature studies primarily the payment methods favored by small and medium-sized enterprises largely from the financing perspective, believing that the choice of payment methods is substantially a behavior of rationality. This paper, however, sets out from the assumption that small businesses are not acting completely in keeping with rationality in an empirical study of the herd mentality at play in the choice of payment methods by small and medium-sized enterprises as part of the decision-making processes for the procurement of construction machinery, targeting for the first time the small and mediumsized enterprises as a group of purchasers of construction machinery among a greater industrial customer base. Incorporating the classic behavioral model of purchasing decisionmaking by organizations and the relevant research findings, this paper studies multiple factors which may affect the purchasing behaviors of organizations in an effort to construct a conformity model describing the choice of payment methods by small and medium-sized enterprises. In this paper, the environmental factors and individual factors are put forth as the major contributive factors to affect the probability of conformity of SMEs with a further analysis on how the choice of payment methods by SMEs is affected by such probability of conformity.