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.