The purchasing market entry process—A study of 10 Swedish industrial small and medium-sized enterprises |
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Authors: | Henrik Agndal |
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Institution: | aCentre for Marketing, Distribution and Industry Dynamics, Stockholm School of Economics, PO Box 6501, SE-113 83 Stockholm, Sweden |
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Abstract: | While an area of importance and concern to managers, international purchasing remains an under researched phenomenon, especially in the context of small and medium-sized firms. Therefore, this article presents a study of the international purchasing market entry processes of 10 industrial SMEs. The findings indicate that managers of SMEs are often reluctant to source abroad. Purchasing markets entries are generally more reactive than proactive, occurring as a consequence of needs for certain products that cannot be found domestically, high domestic costs, unsolicited opportunities and pressures from owners and customers. Nearby purchasing markets typically dominate throughout the process unless cost savings motivate firms to explore more remote markets. |
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Keywords: | International purchasing Purchasing process Purchasing markets SME |
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