Organizational Buying Behavior of Selected Leather Footwear Exporting Companies in Addis Ababa, Ethiopia

Abstract

The purpose of this study is to assess the buying behavior of the Ethiopian leather footwear exporting companies in terms of supplier selection criteria, buying center, and factors affecting the purchasing process. In order to achieve the objective, a multiple case study approach is used in three case companies. The companies are Anbessa Shoe Share Company, Tikur Abbay Shoe Share Company and Peacock Shoe Company. The source of evidence is a personal interview conducted with the three case company managers. Furthermore, the data was evaluated using within-case analysis for easy data reduction, data display and drawing and verifying conclusions followed by a cross-case analysis. And the results indicated that quality and delivery are the most important criteria by case companies. Production facilities and capacity, financial position, procedural compliance and communication system are considerably important. The buying centers communication network and player in straight re-buy is the same as in modified re-buy. Likely, the roles in the buying center in both straight re-buy and modified re-buy is similar. Finally, the environmental, organizational, buying center and individual factors are influencing the buying process of the case companies. Thus, managers should clearly realize their buying center activities and internal and external factors in order to have smooth relationships with the finished leather suppliers and improve their footwear export performances.

Keywords: organizational buying behavior, supplier selection criteria, buying center