The Influence Economy: Decoding Supplier-Induced Demand

“Captivating read! Superbly written blend of classic research, fresh thinking, and spot-on field work, The Influence Economy is a deep dive into the arcane world of professional services. Lawyers, bankers, consultants, and the like are often wise, well-meaning advisors, but also can create demand for unnecessary, even harmful corporate actions. Full of provocative questions. Be prepared to think!” — Kathleen M. Eisenhardt, S. W. Ascherman Professor, Stanford University

“How often does a dissertation supervisor’s advice serve her interests rather than the student’s? Often, but the phenomenon is not limited, nor concentrated, in professors. It is generic to professionals who in some part create demand for their service. This book looks closely at lawyers, among others. To what extent do lawyers encourage clients to pay for services more in the lawyer’s interest than the client’s? What about business consultants? Doctors? Politicians? Frightening questions. Significant questions. You will not walk out of this book the same person who entered.” — Ronald S. Burt, Distinguished Professor, Bocconi University and Charles M. Harper Leadership Professor of Sociology and Strategy, University of Chicago

“A tour de force exploring the intricate dynamics that underpin the market for professional services. The novelty and rigor of this book’s arguments make it indispensable reading for scholars and practitioners alike who have a keen interest in understanding the dynamics of these markets. Others with a broader interest in professions, the knowledge economy, and the art of influence and persuasion will also find this work enlightening. Ultimately, I think both buyers and sellers of professional services should read this book-it will change their perspective.” — Ranjay Gulati, Paul R. Lawrence MBA Class of 1942 Professor of Business Administration, Harvard Business School

“You likely have not heard of supplier-induced demand. After reading this book, you will know why its effect should concern you when managing an organization, buying a service or product, or simply participating in our complex, information-studded society. These concerns are especially great if you are participating in the tight embrace that consulting firms and other professional firms have with their corporate clients. Read the book to see why.” — Henrich R. Greve, Rudolf and Valeria Maag Chaired Professor of Entrepreneurship, INSEAD

“Explores the phenomenon of supplier-induced demand in the context of professional services, focusing on the fusion of enabling market conditions, institutional logics of action, and breakdowns in learning cycles. Outlines the intellectual origins of supplier-induced demand in health-care economics and the parallels it shares with the studies of credence goods.” — Journal of Economic Literature (Vol. 63, No. 4)

Maxim Sytch is the Jack D. Sparks Whirlpool Corporation Research Professor of Business Administration and a Professor in the Department of Management and Organizations at the Stephen M. Ross School of Business, University of Michigan. His research explores how networks of relationships among individuals and organizations emerge and shape behaviors and outcomes.