IDEAS home Printed from https://ideas.repec.org/a/vrs/zirebs/v24y2021i1p99-111n1005.html
   My bibliography  Save this article

Factors Influencing Organisational Buying Decisions in the Manufacturing Industry: Are Products and Services Procurement Different?

Author

Listed:
  • Ćorić Dubravka Sinčić

    (Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia.)

Abstract

The paper explores factors influencing services procurement decision-making of manufacturing companies, and compares it to factors influencing products procurement decision-making. Data were gathered by survey among manufacturing companies and analysed by using exploratory factor analysis. The comparison between factors influencing services procurement and factors influencing products procurement is made by content analysis. Results prove that six distinct factors influence manufacturing companies when making services procurement decisions: interdepartmental communication, trust in service provider, service provider flexibility, buyer’s price sensitivity, top management support, and service provider competence. When compared to products procurement situation, it can be observed that some of the factors are influential in both purchasing situations, whereas other factors are not similarly important in both purchasing situations. The paper offers an insight to factors influencing buying decisions of manufacturing companies, that can help selling companies to better understand the differences in procurement processes of manufacturing companies in two buying situations: products procurement vs. services procurement.

Suggested Citation

  • Ćorić Dubravka Sinčić, 2021. "Factors Influencing Organisational Buying Decisions in the Manufacturing Industry: Are Products and Services Procurement Different?," Zagreb International Review of Economics and Business, Sciendo, vol. 24(1), pages 99-111.
  • Handle: RePEc:vrs:zirebs:v:24:y:2021:i:1:p:99-111:n:1005
    DOI: 10.2478/zireb-2021-0005
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/zireb-2021-0005
    Download Restriction: no

    File URL: https://libkey.io/10.2478/zireb-2021-0005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Organisational buying behaviour; Products procurement; Services procurement; Manufacturing companies; Factor analysis;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:zirebs:v:24:y:2021:i:1:p:99-111:n:1005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.