New Books Network Maxim Sytch, "The Influence Economy: Decoding Supplier-Induced Demand" (Oxford UP, 2025)
Nov 1, 2025
Maxim Sytch, an author and scholar of professional services, dives into the concept of supplier-induced demand in his latest work. He reveals how consulting, legal, and banking industries generate demand for unnecessary services, often leading to detrimental effects on organizations. Sytch discusses the role of uncertainty in elevating supplier influence and how AI may shift demand for elite services. He also shares practical advice for leaders to combat these dynamics, emphasizing the importance of in-house expertise and ethical practices.
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When Experts Define Demand
- Supplier-induced demand (SID) occurs when experts help create buyers' needs rather than just fill them.
- SID shifts decision power from buyers to sellers in complex, uncertain work, per Maxim Sytch.
Uncertainty Amplifies Influence
- Uncertainty increases reliance on experts because buyers don't know what to ask or do.
- Complex, cross-domain problems create problem, action, and outcome uncertainty that favor supplier influence.
Commercial Logic Rewired Firms
- Professional services shifted from a professional to a commercial logic since the 1980s.
- That cultural shift links visible activity and revenue generation to professional identity, encouraging motion over restraint.
