International Purchasing in Small and medium-sized Danish manufacturing companies-Foreign supplier selection-

Abstract

The present paper focuses on the international purchase behavior of small and medium sized manufacturing firms activating in Denmark. The study aims to identify the internationalization patterns of the purchasing activities and to understand what the most important criteria that drive purchasing managers, when making selection decision regarding the international suppliers, are.

The theoretical part of the research is based on creating a conceptual model for purchasing activities in the international trade context, where the main motive for sourcing internationally, barriers to sourcing and strategic decisions in international purchasing are highlighted. Moreover, the paper examines the supplier assessment and selection process in order to identify the main selection criteria for international suppliers.

The practical part of the paper contains the presentation and analysis of the research findings. Over 2.000 web-mailed surveys were delivered towards previously identified Danish manufacturing SMEs that are involved in import activities. Respondents’ answers have been analyzed according to their preferences on different types of products, supplier-base structures and buyer-supplier relationships.

According to the research results, the respondent firms are relatively highly involved in international purchasing. Furthermore, the primary drivers for choosing a foreign supplier have been recognized as being commitment to quality, delivery reliability and technological capability of the supplier.