Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

Journal of Business & Industrial Marketing

A relationship model between key problems of international purchasing and the post-purchase behavior of
industrial firms
Carrete Lucero
Article information:
To cite this document:
Carrete Lucero, (2008),"A relationship model between key problems of international purchasing and the post-purchase behavior
of industrial firms", Journal of Business & Industrial Marketing, Vol. 23 Iss 5 pp. 332 - 341
Permanent link to this document:
http://dx.doi.org/10.1108/08858620810881601
Downloaded on: 22 January 2015, At: 23:12 (PT)
References: this document contains references to 59 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 2291 times since 2008*
Users who downloaded this article also downloaded:
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

Tsan-Ming Choi, Chris K. Y. Lo, Christina W.Y. Wong, Rachel W. Y. Yee, Bin Shen, Yulan Wang, Chris K.Y. Lo, Momoko Shum,
(2012),"The impact of ethical fashion on consumer purchase behavior", Journal of Fashion Marketing and Management: An
International Journal, Vol. 16 Iss 2 pp. 234-245 http://dx.doi.org/10.1108/13612021211222842
Hyun-Mee Joung, (2013),"Materialism and clothing post-purchase behaviors", Journal of Consumer Marketing, Vol. 30 Iss 6 pp.
530-537 http://dx.doi.org/10.1108/JCM-08-2013-0666
Mihir A. Parikh, Kailash Joshi, (2005),"Purchasing process transformation: restructuring for small purchases",
International Journal of Operations & Production Management, Vol. 25 Iss 11 pp. 1042-1061 http://
dx.doi.org/10.1108/01443570510626880

Access to this document was granted through an Emerald subscription provided by 485088 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics
(COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.


A relationship model between key problems
of international purchasing and the
post-purchase behavior of industrial firms
Carrete Lucero
Tecnológico de Monterrey Campus Toluca, San Antonio Buenavista, Toluca, Mexico

Abstract
Purpose – This paper aims to analyze the key problems related to the international purchasing operations and their interrelationship with the post-
purchase industrial behavior: repeated purchase with modification, repeated purchase without modification and no rebuy. The objective is to develop a
conceptual model in the area of international post-purchase industrial behavior.
Design/methodology/approach – Based upon prior research in business marketing, international marketing, international business and intercultural
communication, and complemented by an exploratory qualitative approach, the paper proposes a conceptualization of the post-purchase industrial
behavior and of the relationships between cost, logistics, governmental and cultural factors affecting international post-purchase industrial behavior.
Findings – This paper elaborates a conceptual model and research propositions that delineate the relationship between key problems of international
purchasing and the post-purchase behavior of industrial firms. The importance of the cultural factor-problem is outlined.
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

Originality/value – The value of the paper is to provide an emerging theory for the study of international post-purchase industrial behavior. The
concept of post-purchasing behavior is explained in the context of international purchasing. Also, the paper provides insights of the effect of culture in
international delivery times.

Keywords Buying behaviour, Business-to-business marketing, Purchasing, Lead times, Buyers, France

Paper type Research paper

An executive summary for managers and executive behavior. Table I provides an overview of selected studies on
readers can be found at the end of this article. international purchasing identified in the literature.
In light of these growing approaches to the phenomenon of
international purchasing and given the limited
Introduction conceptualization on the post-purchase behavior of the
international buyer, we want to focus this article on the
The internationalization of industrial purchasing is nowadays
following:
a common activity for many enterprises and this tendency is .
To propose a conceptualization of post-purchasing
increasing. Many companies develop and manufacture behavior in international purchasing.
products to be commercialized simultaneously in different .
To present a conceptual model and research propositions
countries. They also import raw material, components or delineating the relationship between key problems of
semi-finished products coming from different parts of the international purchasing and the post-purchase behavior
world. Their purpose is to reduce production costs, improve of industrial firms.
their product quality, or receive a benefit from the
technological developments relative to products and The need to develop and test a conceptual model, outlining
processes. This activity does not only concern the big the relationships between key problems of international
industrial customers, but also the small and medium purchasing and the post-purchase behavior is central.
customers from different sectors of industrial activity. These Therefore, we first review the major perspectives on key
companies incur more and more toward international international purchasing problems: costs generated by
purchases to be able to face the ever-growing competition. international purchases, logistics’ problems, cultural aspects
Although this dynamic has favored the development of and governmental issues. Brief overviews of literature on the
remarkable studies on the international industrial buying management of those problems are provided. Second, we
behavior, the theoretical and empirical frameworks are scarce present a model of key problems of international purchasing
compared with the research developed on the exporter’s that impact on the firm’s post-purchasing behavior. This
model will be complemented by an inductive interpretation of
The current issue and full text archive of this journal is available at ten interviews conducted with international industrial
www.emeraldinsight.com/0885-8624.htm purchasers. We conclude with a brief discussion and
guidelines for future research.

Journal of Business & Industrial Marketing


23/5 (2008) 332– 341 Received: August 2006
q Emerald Group Publishing Limited [ISSN 0885-8624] Revised: January 2007
[DOI 10.1108/08858620810881601] Accepted: April 2007

332
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

Table I Prior studies on international purchasing: an overview


Research issues Authors
Implications of international purchasing in the strategic and financial Davis et al. (1974); Arnold (1989); Carter and Narasimhan (1990); Kotabe and
performance of companies Swan (1994); Murray et al. (1995)
International purchasing strategies Reichel (1988); Min and Galle (1991); Monczka and Trent (1991, 1992);
Rajagopal and Bernard (1993); Swamidass and Kotabe (1993); Handfield
(1994); Gupta and Zhender (1994)
Tavernier (1983, 1984) Tavernier (1983, 1984); Narasimhan and Carter (1990); Giunipero and
Monczka (1990); Barreyre and Lentrein (1992); Sweeney (1994)
International negotiation and its implications for buyers and suppliers Min and Galle (1991); Graham (1985); Usunier (1987, 1988a, b, 1989); Prime
(1994)
The logistics aspects of the international purchasing Murphy et al. (1992); Murphy and Daley (1994, 1995)
International buying behavior White (1979); Hallen (1982); Speckman (1991); Ghymn et al. (1993); Deng and
Wortzel (1995); Liang and Stump (1996)
Country-of-origin effects on the international buying behavior Kaynak and Kucukemiroglu (1992); Thorelli and Glowacka (1995)
Buyers’ motivations to buy abroad Monczka and Giunipero (1984); Fagan (1991); Frear et al. (1992); Birou and
Fawcett (1993); Levy and Dunning (1993); Swamidass and Kotabe (1993);
Swamidass (1993)
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

Products and sectors involved on international purchasing Frear et al. (1992); Wyckoff (1993)
International purchasing problems and their administration Carter and Vikery (1988, 1989); Fagan (1991); Gentry (1991); Min and Galle
(1991); Frear et al. (1992); Birou and Fawcett (1993); Levy and Dunning (1993);
Barreyre and Lentrein (1992); Levy (1995)

International purchasing in firms: the role of exchange rate information as an input to the sourcing decision
costs, logistics, governmental and cultural and to the volume-timing of purchases decision) to those that
are taken after the selection of the supplier (e.g. payment in
problems and implemented management purchaser currency, buying foreign currency in advance,
A review of prior conceptualizations buying foreign currency futures, risk-sharing contract
Direct and indirect international costs agreement and payment in supplier’s currency). The first
A review of the literature on international costs reveals a ones are called macro-level strategies and the second ones are
general consensus in the way they are defined: the added costs called micro-level strategies (Carter and Vickery, 1988,
not included in the costs of a national purchase. These costs 1989). Regarding the cost of specialists in international
include the international transport, import taxes, trade, the most popular functions of these intermediaries, for
intermediary’s services, financial expenses, development of which industrial buyers are willing to pay, are freight charges,
additional stock, communication and trips abroad, among tracing and expediting shipments, making routing
others (Fagan, 1991; Min and Galle, 1991; Page-Lecuyer, recommendations, issuing export declarations and preparing
1991; Gentry, 1991; Murphy and Daley, 1994; Levy, 1995, certificates of origin (Murphy et al., 1992; Murphy and Daley,
Bouche and Plauchu, 1995). The costs that have been more 1995). The costs related to taxes and customs duties have
studied in the industrial purchasing literature are those related been widely studied in the theories of international trade. In a
to international transport, the fluctuations in exchange rates way, the former explains the relatively little analysis done in
and the intermediaries involved in international transactions. industrial purchasing literature.
Because of the importance given to these costs for many years Logistical problems
by the industrial buyers (Min and Galle, 1991), research has The transportation delays or delivery problems have been
focused on the weight of this problem in the international identified by Min and Galle (1991), Frear et al. (1992), and
purchasing operation (Levy, 1995). As was pointed out by Barreyre and Lentrein (1992), as the most important
Page-Lecuyer (1991), the international transportation cost obstacles in the international purchasing. Before the
can raise the price of products by 5 up to 30 percent exchange rate fluctuations and the transportation costs. The
approximately. Even when the international transport cost suppliers’ failure to meet delivery requirements is a problem
could not affect the competitiveness of the product price, this regardless of where it happens (North and South America,
has been perceived by industrial buyers as the second most Eastern and Western Europe, Caribbean Area, East Asia and
important cost after the exchange rate fluctuations (Min and other Asian Countries). Barreyre and Lentrein (1992) show
Galle, 1991). In terms of the management to confront the that the compliance with lead times appears as a main
transportation costs, studies have focused on the product difficulty for the industrial buyers because of the
characteristic (e.g. less expensive transport for products with incompatibility of international purchasing with the just-on-
low added value) and on the type of demand (e.g. air time practice. Because lead times can influence decisions such
transportation in the event of punctual demands not foreseen as the form of stock administration and the transport and
or unstable demand (Page-Lecuyer, 1991). The measures to carrier selection, the management analysis has focused on the
manage exchange rate fluctuations range from those that are organization of the logistic system (e.g. to integrate an
taken before the selection of the supplier (e.g. the use of approach that coordinates the different logistical functions of

333
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

the enterprise such as transport organization, purchasing purchase behavior. This model, summarized in Figure 1, will
order processing, warehouse and stock administration be complemented by an inductive interpretation of ten
(Murphy and Daley, 1994; Levy, 1995). In that sense, the qualitative interviews conducted with international industrial
companies that use an integrated logistic system should be purchasers. This study was accomplished with French buyers
more successful in global sourcing than those that manage as part of a doctoral program in that country. The companies
logistics in a fragmented, uncoordinated manner. were selected from the French directory Telexport Rhone
Alpes that perform regular acquisitions of industrial products
The cultural problem
Contrary to delivery problems, cultural heterogeneity has in international markets. The interrogated person in each
shown fewer issues for industrial buyers (Min and Galle, company was the international purchasing agent (see the
1991; Frear et al., 1992). Even though, when referring interview guide which is reproduced in the appendix). All the
exclusively to the negotiation phase, purchasers perceive interviews were recorded and written in a monograph form
linguistic and cultural differences as the most serious and they were analyzed using the content analysis method
obstacles (e.g. dishonesty of the international supplier, (Neuendorf, 2002). This qualitative approach is suitable to
different conflict resolution styles and the size of the complement the conceptual model proposed.
negotiating team). In that perspective, the research has The profiles of the studied companies vary in relation to
focused in the effect of culture on the process, on the industry, size, imported product and origin country of the
strategies and on the results of international negotiation purchasing. Two companies correspond to the agrochemical
(Graham, 1985; Jolibert, 1988; Campbell et al., 1988; sector, two to the electrical household appliances sector and
Usunier, 1987, 1988a, b, 1989; Prime, 1994). Related to the remaining six to the food, electric, distribution of
the buyer-supplier relationship, the research of the European photographic products, pharmaceutical, dressing and textile
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

work team IMP (Turnbull and Valla, 1986; Valla, 1987) and sectors, respectively. Of the ten companies seven have more
that of other European authors (Dzever, 1996; Kale and than 250 employees. From the researched companies, several
Barnes, 1992) has focused in the effect of national culture on acquire their different supplies from more than one country.
the elements of the buyer-supplier’s interaction: participants, From the European Union they buy materials such as
the interaction process, relationship’s atmosphere and the chloride and active materials to manufacture herbicides,
environment in which the interaction takes place. In the insecticides and fungicides; components or semi-finished
studies of international negotiation, the management products such as packing, electric components, cloth and
proposals have focused on the understanding of the national thread in polyester and cotton, and finished products as
culture of the international partner (e.g. to adapt the content appliances and photographic products. From East Europe
and the communication style preferred by the counterpart in they procure cloth and thread in polyester and cotton and
the interactions). they subcontract the assembling of electric switches. From
Central and Southeast Asia they purchase active materials to
Governmental issues manufacture herbicides, insecticides and fungicides, thread
The overseas trade controls are mainly discussed in and cloth in polyester and cotton and appliances. From West
international business literature from a juridical point of Africa they obtain exotic fruits and from North America and
view in order to explain their influence on the purchasing Central America they buy active materials to manufacture
operations of buyers. Since these problems are perceived as herbicides, insecticides and fungicides, photographic products
not very important by international purchasers (Min and and exotic fruits. This profile allows integrating a diversity of
Galle, 1991), the studies of the import controls only focus on international purchasing experiences.
getting buyers familiar with the implications of the A brief description of the major components of the model
international transactions, according to the product’s nature, and the presented propositions follows.
its origin and its destination. There exist two different
approaches for the management of this problem. One
Types of post-purchase behavior
approach analyzes actions related to qualitative aspects (e.g.
Post-purchase behavior can be conceptualized according to
the requirement to the supplier to meet health standards,
the underlying types of behavior in the post-purchase process.
security quality, packaging and labeling standards, in order
Specifically, we conceptualize post-purchase behavior along
that products may be imported legally into the country).
three dimensions: purchase is repeated without modification,
Another approach analyzes actions related to quantitative
purchase is repeated with modification and there is no rebuy.
aspects (e.g. to conform to the quotas limitation of the
It is conceivable that all three forms might take place in a
imported product to ensure its availability) (Gauchet, 1996;
particular firm, and the nature of repeated purchase with
Leenders et al., 1998).
modification may vary across contexts of the international
exchange activities of the firm. Note that our terms repeat
A conceptual model of costs, logistics, purchase without modification and repeat purchase with
governmental and cultural factors affecting modification are parallel to the buying situations: straight
international post-purchase industrial behavior rebuy and modified rebuy.

Although there is an important body of research on the Repeat purchase without modification
problems affecting international industrial purchasing, an This behavior refers to the situation where the buyer keeps
integrated model delineating the relationships between demanding the same product from the same international
organizational, geographical and governmental factors and supplier with the same criteria. This behavior will exist as long
post-purchase behavior is needed. Our objective is to propose as the buyer does not experience any relevant problem on the
a conceptual model that outlines the relationships between international purchase process and the performance level of
key problems of international purchasing and the post- the supplier corresponds to the one expected. And,

334
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

Figure 1 A model of international post-purchase industrial behavior


Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

simultaneously, the buyer does not entertain better proposals incompatible with the just on time practice, or it could be
of supplying sources. very difficult or impossible to handle the long delays caused
by weather, strikes, or customs’ problems (Levy, 1995).
Repeat purchase with modification
This behavior results in a change of suppliers or purchasing
criteria. For example, decision-makers choose a modified Problems of international purchase: magnitude
rebuy situation when they face problems like long delays or and management
high costs due to exchange-rate fluctuations. In these cases,
the buyer revaluates alternatives as passing the purchasing Cost effects
order with anticipation or signing risk-sharing contract The effect of added costs on the international purchasing
agreements or switching to a new supplier due to (understood as the costs not included in a national purchase)
unhappiness with a current one. Repeat purchase with has been documented in the business to business literature.
modification is dependant on the way a decision-maker has The international transport and fluctuations in the exchange
managed the purchasing problems. rates are considered the most onerous costs. In our
exploratory qualitative approach, the magnitude of these
No rebuy costs is also emphasized by French decision-makers. Other
This dimension is the more critical post-purchase behavior. important costs are those related to quality problems and to
No rebuy occurs when the decision-makers decide to end the the exceptional stocks. On the opposite, the overseas travel
international purchase because of the many problems and communication costs and the import tariffs’ costs are
involved in the process and the impossibility to handle considered marginal. Other costs highlighted by the
them. For example, cultural heterogeneity could cause interviewed managers and that do not figure very often in
irreconcilable misunderstandings to meet urgent demands or the international purchasing literature are: the service of
quality standards. The geographical distance could be importers when it is required due to the nature of the

335
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

purchase (commercializing companies, commercial agents); derived from their international purchases. Decreasing the
the ad hoc package in order to assure the products; and the total costs of their requirements will allow them to carry on
created structures for managing the purchase: the purchasing with the business.
functions, logistics, and product development. Hence:
Moreover, the transport cost becomes relevant mainly when P1. The greater the added cost of the international
the products have a low added value, are required in low sourcing, the greater is the probability of repeating a
volumes and from distant sources. According to our purchase with modification.
interviews, this can increase the product’s cost by 7 percent P2. The greater the added cost of the international
up to 20 percent. The management for confronting the sourcing, associated with the impossibility to confront
transportation costs is related to the product characteristic it, the greater the probability of not repeating the
(e.g. less expensive transport for products with low added international purchase.
value, foreseeing the purchasing orders to avoid affecting the
production program; or different conception of products in
Logistics factors
order to optimize the packaging and therefore the container
In the context of international purchasing, the key variable
filling and the transportation). It is also related to the type of
underlying logistics factors is the lead-time. This aspect can
demand (e.g. air transportation in the event of punctual
be viewed from two different perspectives: For purchases from
demands not foreseen or unstable demand) and to the buyer-
neighboring countries lead times are not necessarily a
transport relationships (e.g. the negotiation of rates with
problem. The companies may even develop “just on time”
transports through partnership). In the extreme case, the
deliveries just as they do with their national suppliers. But
post-purchase behavior of the company could be to stop
when products come from farther, defective and late
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

purchasing from the international supplier, as expressed by an


deliveries are recognized to be an important obstacle in the
interviewed manager:
international purchasing (Min and Galle, 1991; Frear et al.,
The transport costs from Asia are onerous for our company; we will try then
to find the right products in our country to get separated from that region.
1992; Barreyre and Lentrein, 1992). Products coming from
Asia and Africa usually are transported in ships in addition to
The costs of exchange rate fluctuations are also significant in trucks or trains before the product reaches the American or
international purchasing. One of the interviewed managers European industrial clients. Because of the long expedition of
describes them in the following way: the goods, delays may occur due to changes in weather
These costs become significant in our international operations because our
conditions or to the underdevelopment of the transport
forecasts are not always good . . . it is difficult to estimate the movements of infrastructure of certain countries. In the interviews
exchange rates. conducted with the French buyer agents, they attribute the
lead time problems to the geographical remoteness of the
The measures to manage this problem are related to macro supplying source and to the time it takes for the fluvial or land
level strategies (e.g. the use of exchange rate information as an transportation. They perceive lead-time problems as an
input to the sourcing decision and to the volume-timing of important issue mainly when it is necessary to work on a
purchases decision) and micro level strategies (e.g. payment “just on time” basis or when they have the need for
in purchaser’s currency, buying foreign currency in advance, complementary and urgent deliveries. In order to continue
buying foreign currency futures, risk-sharing contract with the international purchases, the way to manage the delay
agreements and payment in supplier’s currency) (Carter and and long lead times problems is related to the organization of
Vickery, 1988, 1989). the logistic system. This implies the following aspects: the
Related costs due to low quality (waste, rejections, rework negotiation of firm and provisional delivery agreements; the
products): these costs can have an important financial impact constitution of security stocks for products considered
because they affect the production program of the company. important; the negotiation of supplying agreements with
The charges for reworking could be minimal, but they may national suppliers to satisfy the demand fluctuations; the
increase unit cost by as much as 35 percent (Fagan, 1991). development of transport specifications for assuring on-time
Their management is related to the appropriate definition of transportation, and the programming of reasonable
technical specifications (e.g. a careful revision of the purchases. An interviewed manger notes that:
specifications in the purchasing order), and to the To manage long itineraries of the international purchases, we try to make the
negotiation criteria (e.g. a specific negotiation on important most possibly reliable purchase forecasts, even more, we take the risk of
ordering even though we don’t have firm demands from our clients.
aspects of the purchasing or a negotiation of losses when a
product arrives with quality problems). It is also related to the
Hence, the implications are:
implementation of quality controls in the supplier’s company.
P3. The greater is the lead times problem of the
Finally, the cost due to exceptional stocks may add from 5
international sourcing, the greater is the probability
to 10 percent to the unit cost (Fagan, 1991). The
to repeat purchase with modification.
management of this cost focuses on the analysis of the total
P4. The greater is the lead times problem of the international
cost’s impact (e.g. the option of plane transportation in the
sourcing, associated with the impossibility to handle it,
event that this cost is smaller than the one derived from
the greater is the probability of not repeating the
keeping a stock or its elimination). It also focuses on the
purchasing.
evaluation of the geographic distance’s impact (e.g.
implementation of just on time deliveries for products
coming from sources with geographic proximity). It is Governmental factors
suitable to note that the small and medium companies are Governmental factors consist of the amount of customs
the ones that have a bigger interest in calculating all the costs regulations on quotas and/or the fulfillment of documents and

336
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

standards of international purchasing. The first factor could complementary supplying, modifications in the products’
not represent a significant problem. Either because of the specifications and length, respect and speeding up of lead
nature or the volume of the purchasing, decision-makers times. In our study, the lead-time problem seems to be the
will not face the quota’s problem. Whenever there is the need most recurrent of the three. The buyers state that lead times
for considering the quantity, managers usually request the of foreign suppliers are particularly long, beyond the technical
services of internationally certified importers and complexity of the product or the geographic distance. The
the purchases are made without obstacles. Concerning the management of the cultural divergence could have different
accomplishment of technical norms, it could be a problem in approaches: a people’s approach (e.g. conduct the purchases
the case when the legislation of the origin country differs through channel intermediaries familiarized with the foreign
greatly from the national one (in health or security matters), culture, recruit personnel that speak the foreign language
or when the international supplier refuses aligning its fluently, support from members of the firm’s branches in the
products with updated national norms. The management supplying country), and an information’s approach (e.g.
then focuses on the establishment of agreements with the search of information on the supplier’s culture to understand
supplier (e.g. costs negotiation of the package or functional the way they think). As a manager noted:
features, suitability of products to meet requirements of health We try to be informed as much as possible about the way our foreign
standards, security quality, packaging and labeling). It is also suppliers think, we try to assume the cultural differences without any
related to the establishment of agreements with the local and connotation of good or bad.
national Customs Office to facilitate the fulfillment of the
total international paperwork (e.g. combining the total of Another approach is the one related to relational aspects (e.g.
different purchases from customs into one single procedure, establish narrow relationships with foreign suppliers where the
human contact impacts favorably in the international
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

sending documents by fax in order to acquire purchases


through customs, assisting the firm 24 hours a day including exchange). A firm operating in an international context
weekends, and transferring control responsibilities to the would be willing to adopt a global conscience in such a way
company). The interviewed managers outline the importance that its self-reference approach, as Cateora (1987)
of subscribing customs partnerships mainly in the cases when emphasizes, does not hinder its marketing-mix strategy in
the industrial purchases are dispersed throughout different foreign markets.
continents. These agreements intend preserving the Hence:
regulation dimension of the Customs Office favoring the P6. The stronger is the organizational cultural divergence
administrative dimension of the company. Customs is between the companies involved, the greater is the
perceived by industrial clients as an unavoidable link totally probability to repeat purchase with modification.
integrated into the logistical chain. P7. The stronger is the organizational cultural divergence
Hence: between the companies involved, associated with the
P5. The greater are the customs regulations on quotas or impossibility to handle it, the greater is the probability
the fulfillment of documents and standards of of not repeating the purchasing.
international purchasing, the greater is the probability
to repeat purchase with modification.
Proposals for future research
Cultural factors Studies examining the relationship between key problems of
Important aspects that facilitate or inhibit purchasing are the international purchasing and post-purchase industrial
cultural factors. Contrary to the governmental controls, to the behavior are necessary for developing the theory
induced costs by international purchasing, and still to the lead foundations on international industrial purchasing in
times related to geographical factors; cultural problems are addition to improving international purchasing efforts. In
perceived by the interviewed managers as the biggest obstacle this section we outline several research directions.
for the expansion of international purchasing. This finding We have conceptualized post-purchase industrial behavior
contrasts with the previous studies, where cultural as a multidimensional construct. The next necessary step is to
heterogeneity showed fewer issues for industrial buyers (Min generate valid and reliable scales to capture the dimensions of
and Galle, 1991; Frear et al., 1992). The cultural problem is post-purchase behavior. Another important step for
present particularly in two moments of the purchasing developing valid measures of post-purchase behavior is to
process: on the purchasing negotiation and on the determine whether the proposed dimensions are meaningful
purchasing management. During the purchasing negotiation, and generally exhaustive, that is: are most of the major
the linguistic divergence ends up affecting the definition of the dimensions of post-purchase international industrial behavior
technical specifications. It is not simple for decision-makers to included in this framework?
define the specifications of products in a language that is not In the proposed model, post-purchase industrial behavior is
their mother tongue. Misunderstandings can appear with presented as a function of organizational, geographical and
suppliers acting in good faith. But beyond the syntax and governmental factors. Empirical testing of the model can
terminological structure, the definition of specifications provide insights into its validity as well as the need for further
requires the understanding of the underlying connotations refinements. Furthermore, we presented the weight of these
of the concepts. Differing understanding of concepts such as factors/problems in the international purchasing operation, in
“quality,” “fashion,” “design,” “urgent deliveries,” could that sense there is a need to examine if the cultural aspect
cause difficulties in making clear the buyer’s real necessities. should be recognized as the main obstacle in international
On the management of purchasing, the culture of foreign purchasing. For this purpose, a suppliers’ perceptions
suppliers could create difficulties in three axes: support of perspective could be adopted.

337
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

Another major research direction that can be drawn from international purchasing and the post-purchase behavior of
this study is the need for further research on the effect of industrial firms. We highlight the need to conceptualize and
culture in international delivery times. The international operationalize the dimensions of post-purchase responses to
delivery times seem to be driven, aside from technical aspects, the international purchasing. Also, because any conclusions
by a less objective and even more intangible dimension, such pertaining to the impact of key problems of the international
as the cultural perception of time by buyers and suppliers. It purchasing will depend in part on the conceptualization of the
appears necessary to include this variable in the examination construct “post-purchase behavior”.
of international delivery time determinants. In our study the It is also of great importance to continue with the research
buyers initially relate delivery problems to the geographical of the cultural influence on the behavior of buyers and
distance, the type of transportation and the technical industrial suppliers for improving the understanding of the
complexity of the product. But when approaching cultural problems in international exchanges. Because the key finding
problems, it highlights that the perceptive divergence in time of this study was the relationship of the international lead-
delivery requirements also has an important influence in the time service to cultural aspects, it becomes imperative to
international lead times. This key finding shows that delivery develop a theoretical framework that integrates this
problems could be examined from a less tangible aspect: dimension.
cultural heterogeneity.
Finally, a critical issue related to key problems of the
References
international purchasing is to examine the dimensions of
measures proposed to manage the purchasing problems. Such Arnold, U. (1989), “Global sourcing: an indispensable
research is particularly important because it can assist to element in worldwide competition”, Management
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

theory building concerning the post-purchase behavior. International Review, Vol. 29 No. 4, pp. 14-28.
Repeat purchase with or without modification and no rebuy Barreyre, P.Y. and Lentrein, D. (1992), “Stratégies et
are dependant variables of the way decision-maker manages pratiques d’achat international dans les grandes
the purchasing problems. entreprises industrielles”, Annales du Management de
l’IAE, pp. 827-44, tomme 2, Nancy.
Birou, L. and Fawcett, S. (1993), “International purchasing:
Managerial Implications
benefits, requirements and challenges”, International
Although our conceptual model and research propositions are Journal of Purchasing and Materials Management, Vol. 29
based in a qualitative research derived from a very small No. 2, pp. 28-37.
sample, we propose some reflections to buyers and suppliers Bouche, M. and Plauchu, V. (1995), “De l’utilité du coût
managers. global pour l’acheteur”, Gestion 2000, Vol. 3, pp. 39-52.
From the purchaser’s point-of-view, it will be important to Campbell, N., Graham, J., Jolibert, A. and Meissner, H.
consider the business culture of the supplier company at the (1988), “Marketing negotiations in France, Germany, the
moment of the evaluation of sources. This aspect is often United Kingdom, and the United States”, Journal of
neglected due to its intangible character. Even tough this is a Marketing, Vol. 52 No. 2, pp. 49-62.
factor that affects some important phases of the international Carter, J.R. and Narasimhan, R. (1990), “Purchasing in the
transaction: the comprehension of buyer’s needs or the international marketplace: implications for operations”,
fulfillment of the agreement transaction. The cultural distance Journal of Purchasing and Materials Management, Vol. 26
should be viewed by purchasing departments as an issue that No. 3, pp. 2-11.
needs proper attention to determine appropriate actions. Carter, J.R. and Vickery, S.K. (1988), “Managing volatile
Besides the cultural divergence, the buyer should have a clear exchange rates in international purchasing”, Journal of
comprehension of other implications of international Purchasing and Materials Management, Vol. 24 No. 4,
purchases. For example, the delays or lead-time problems pp. 13-20.
from products coming from afar and the added cost related to Carter, J.R. and Vickery, S.K. (1989), “Currency exchange
the international transport, fluctuations in the exchange rates, rates: their impact on global sourcing”, Journal of
quality problems or exceptional stocks. This clear Purchasing and Materials Management, Vol. 25 No. 3,
comprehension will provide buying centers with a better pp. 19-25.
organization through the buying process making it more Cateora, P.R. (1987), International Marketing, Richard
effective and efficient. D. Irwin, Homewood, IL.
The supplier should be also aware of all the implications Davis, H.L., Eppen, G.D. and Mattsson, L. (1974), “Critical
derived from international purchases. This knowledge might factors in worldwide purchasing”, Harvard Business Review,
be incorporated into the selling strategies to improve November-December, pp. 81-90.
customer loyalty, sales prospects or margins. If the supplier Deng, S. and Wortzel, L.H. (1995), “Importer purchase
wants repeated purchases from the buyer, an effort should be behavior: guidelines for Asian exporters”, Journal of
made to understand the needs of his client, to respect any Business Research, Vol. 32 No. 1, pp. 41-7.
agreements and to seek a way to help the buyer in handling Dzever, S. (1996), Le comportement d’achat industriel,
the problems of the international purchase process. Economica, Paris.
Fagan, M.L. (1991), “A guide to global sourcing”, The
Journal of Business Strategy, Vol. 12 No. 2, pp. 21-6.
Conclusion
Frear, C., Metcalf, L. and Alguire, M. (1992), “Offshore
An emerging theoretical perspective in the area of post- sourcing: its nature and scope”, International Journal of
purchase industrial behavior suggests the importance of Purchasing and Materials Management, Vol. 28 No. 3,
examining the relationship between the key problems of pp. 2-11.

338
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

Gauchet, Y. (1996), Achat industriel, stratégies et marketing, Purchasing and Materials Management, Vol. 28 No. 4,
Publi Union Editions, Paris. pp. 9-19.
Gentry, J. (1991), “Purchasing’s involvement in Murphy, P.R. and Daley, J.M. (1994), “Logistics issues in
transportations decision making”, CAPS/NAPM. international sourcing: an exploratory study”, International
Ghymn, K., Srinil, B. and Johnson, P. (1993), “Thailand Journal of Purchasing and Materials Management, Vol. 30
import managers’ purchasing behavior”, Journal of Asia No. 3, pp. 22-7.
Business, Vol. 9 No. 1, pp. 1-11. Murphy, P.R. and Daley, J.M. (1995), “International freight
Giunipero, L.C. and Monczka, R. (1990), “Organisational forwarders: current activities and operational issues”,
approaches to managing international sourcing”, International Journal of Purchasing & Materials
International Journal of Physical Distribution & Logistics Management, Vol. 31 No. 3, pp. 22-6.
Management, Vol. 20 No. 4, pp. 3-12. Murphy, P.R., Daley, J.M. and Dalenberg, D.R. (1992),
Graham, J.L. (1985), “Cross-cultural marketing negotiations: “Profiling international freight forwarders: a benchmark”,
a laboratory experiment”, Marketing Science, Vol. 4 No. 2, International Journal of Physical Distribution & Logistics
pp. 130-46. Management, Vol. 22 No. 1, pp. 35-41.
Gupta, M. and Zhender, D. (1994), “Outsourcing and its Murray, J.Y., Kotabe, M. and Wildt, A.R. (1995), “Strategic
impact on operations strategy”, Production & Inventory and financial performance implications of global sourcing
Management Journal, Vol. 35 No. 3, pp. 70-5. strategy: a contingency analysis”, Journal of International
Hallen, L. (1982), “International purchasing in a small Business Studies, Vol. 26 No. 1, pp. 181-202.
country: an exploratory study of five Swedish firms”, Narasimhan, R. and Carter, J.R. (1990), “Organisation,
Journal of Marketing Research, Vol. 12, pp. 46-51. communication and co-ordination of international
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

Handfield, R.B. (1994), “US global sourcing: patterns of sourcing”, International Marketing Review, Vol. 7 No. 2,
development”, International Journal of Operations & pp. 6-20.
Production Management, Vol. 14 No. 6, pp. 40-51. Neuendorf, K. (2002), The Content Analysis Guidebook, Sage
Jolibert, A. (1988), “Le contexte culturel de la négociation Publications, Thousand Oaks, CA.
commerciale”, Revue Française de Gestion, November- Page-Lecuyer, A. (1991), “Mondialisez vos achats pour
December, pp. 15-24. accéder aux meilleures sources”, In Stratégie d’Achats
Kale, S.H. and Barnes, J.W. (1992), “Understanding the Industriels, Conférence de l’Institute for International
domain of cross-national buyer-seller interactions”, Journal Research, Paris, 15-16 April.
of International Business Studies, Vol. 23 No. 1, pp. 101-32. Prime, N. (1994), “Culture, temps et négociation
Kaynak, E. and Kucukemiroglu, O. (1992), “Sourcing of commerciale: le cas des représentations sociales du temps
industrial products: regiocentric orientation of Chinese et de la négociation des délais de livraison dans cinq pays
organizational buyers”, European Journal of Marketing, (Allemagne, Corée, Etats-Unis, France, Tunisie)”, Thèse
Vol. 26 No. 5, pp. 36-55. Sciences de Gestion, Université Pierre Mendès France,
Kotabe, M. and Swan, K.S. (1994), “Offshore sourcing: Ecole Supérieure des Affaires, Grenoble.
reaction, maturation, and consolidation of US Rajagopal, S. and Bernard, K.N. (1993), “Globalization of
multinationals”, Journal of International Business Studies, the procurement process”, Marketing Intelligence &
Vol. 25 No. 1, pp. 115-39. Planning, Vol. 11 No. 7, pp. 44-55.
Leenders, M.L., Fearon, H.E. and Nollet, J. (1998), Nollet La Reichel, J. (1988), “The internationalisation of importing
Gestion des Approvisionnements et des Matières, Gaëtan Morin companies”, European Journal of Marketing, Vol. 22 No. 10,
Editeur, Canada. pp. 31-9.
Levy, D.L. (1995), “International sourcing and supply chain Speckman, R.E. (1991), “US buyer’s relationships with
stability”, Journal of International Business Studies, Vol. 26 pacific rim sellers”, International Journal of Purchasing and
No. 2, pp. 343-60. Materials Management, Winter, pp. 2-10.
Levy, D.L. and Dunning, J. (1993), “Production et Swamidass, P. (1993), “Import sourcing dynamics: an
approvisionnement à l’étranger: tendances et problèmes”, integrative perspective”, Journal of International Business
STI Revue, No. 13, pp. 15-70. Studies, Vol. 24 No. 1, pp. 671-91.
Liang, N. and Stump, R.L. (1996), “Judgmental heuristics in Swamidass, P. and Kotabe, M. (1993), “Component sourcing
overseas vendor search and evaluation: a proposed model of strategies of multinationals: an empirical study of European
importer buying behavior”, The International Executive, and Japanese multinationals”, Journal of International
Vol. 38 No. 6, pp. 779-806. Business Studies, Vol. 24 No. 1, pp. 81-99.
Min, H. and Galle, W. (1991), “International purchasing Sweeney, M.T. (1994), “A methodology for the strategic
strategies of multinational US firms”, International Journal management of international manufacturing and sourcing”,
of Purchasing and Materials Management, Vol. 6 No. 3, International Journal of Logistic Management, Vol. 5 No. 1,
pp. 9-18. pp. 55-65.
Monczka, R.M. and Giunipero, L.C. (1984), “International Tavernier, M. (1983), “Le management de l’achat
purchasing: characteristics and implementation”, Journal of international”, Revue Française de Gestion, Vol. 40,
Purchasing and Materials Management, Vol. 20 No. 3, pp. 108-13.
pp. 2-9. Tavernier, M. (1984), “Les pratiques d’achat international
Monczka, R.M. and Trent, R.J. (1991), “Global sourcing: a des grandes entreprises industrielles”, Papier de Recherche
development approach”, International Journal of Purchasing CERAG, p. 10.
and Materials Management, Vol. 27 No. 2, pp. 2-8. Thorelli, H.B. and Glowacka, A.E. (1995), “Willingness of
Monczka, R.M. and Trent, R.J. (1992), “Worldwide sourcing: American industrial buyers to source internationally”,
assessment and execution”, International Journal of Journal of Business Research, Vol. 32 No. 1, pp. 21-30.

339
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

Turnbull, P. and Valla, J.P. (1986), Strategies for International of problems? How do these problems affect the administration
Industrial Marketing, Croom Helm, New Hampshire. of particular international purchasing and the general activity
Usunier, J.C. (1987), “Négociation des délais et différences of the company? Explain. Has the company implemented
culturelles”, Papier de Recherche CERAG, p. 32. mechanisms to diminish the negative incidence of these
Usunier, J.C. (1988a), “Négociation commerciale problems? Why yes? Why not? Which ones?
internationale et perceptions culturelles du temps”, Papier IV. Conclusion phase: to recapture the problems identified
de Recherche ESCP, p. 73. in the international purchasing operation.
Usunier, J.C. (1988b), “Les perceptions culturelles du temps, In conclusion, which is the importance that your company
une étude comparative entre la France et le Brésil”, Papier attributes to each of the discussed problems and the
de Recherche ESA, Université des Sciences Sociales, additional cost associated to international purchasing? Why?
Grenoble. To which of the problems do you consider that international
Usunier, J.C. (1989), “Interculturel: la parole et l’action”, clients should pay more attention after a purchase performed
Harvard l’Expansion, printemps, No. 52, pp. 84-9. abroad? Why?
Valla, J.P. (1987), “L’approche interactive. Les travaux du
groupe européen IMP en marketing industriel”, Document
Corresponding author
de Recherche IRE.
White, P.D. (1979), “Attitude of US purchasing managers Carrete Lucero can be contacted at: lcarrete@itesm.mx
toward industrial products manufactured in selected
western European nations”, Journal of International Executive summary and implications for
Business Studies, Vol. 10 No. 1, pp. 81-97.
managers and executives
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

Wyckoff, A.W. (1993), “Extension des réseaux de production


transfrontières”, STI Revue, No. 13, pp. 71-100. This summary has been provided to allow managers and executives
a rapid appreciation of the content of the article. Those with a
Appendix. Interview guide for directors or particular interest in the topic covered may then read the article in
purchasing responsibles about specific problems toto to take advantage of the more comprehensive description of the
research undertaken and its results to get the full benefit of the
of international industrial purchasing material present.
Company:
Activity sector: You are a landscape gardeners’ supplier and import the very
Number of employees: best, high-quality Indian sandstone, re-selling it at a
I. Introduction phase: reminder of the nature and the competitive price. Everything in the garden’s looking rosy in
objectives of the research. Gathering of general information terms of international purchasing until new regulations insist
on international purchasing of the company. load weight limits on your shipping containers must be
What industrial products does your company purchase from reduced, rocketing oil prices send your transport costs
abroad? Why? From the mentioned products, which represent soaring, and the dollar exchange rate shaves off even more
the main supply according to the volume or value of the of your profit.
purchase? Where does this product come from? Why? Since And what if your definition of an “urgent” order is not quite
when does the company purchase this product from a foreign the same as that of your overseas supplier, and your attempts
country? to run your business on efficient “just in time” inventory
II. Centralization and deepness phase of the topic: to strategy turn out to be a “just too late” embarrassment?
identify the specific problems which the purchasing operation What do you do? Carry on buying and re-selling your stone
produces of the main product supplied from abroad and the regardless? Keep on buying but renegotiate the terms with
way they are managed. your overseas supplier? Or call the whole thing off and try to
Sub-topic no. 1 – Additional purchasing costs source alternative materials from elsewhere?
Which are the costs in which the company incurs in the It is a problem facing organizations everywhere, whatever
purchasing of the main product coming from a foreign their business, if it involves buying from abroad. Not everyone
country, not present in a national purchase? From the factors in those elements of international business that can
mentioned costs, which are considered the most important leave you grappling with unwelcome surprises that leave you
ones? Why? What percentage does this additional cost feeling out of control.
represent related to the global cost of the product? How Carrete Lucero tries to remove some of the surprise element
does the company quantify these costs? Which is the with a conceptual model. In a study based on French
incidence of these costs in the international purchasing companies that regularly buy industrial products in
operation? Does the company do something to diminish international markets, they highlight the importance of
additional costs? Which costs? How? examining the relationship between key problems
of international purchasing and the post-purchase behavior
Sub-topic no. 2 – Logistical, cultural and institutional barriers of industrial firms.
Which problems does your company face in the international It is important for a growing number of organizations as the
supplying of the studied product, not related to additional internationalization of industrial purchasing, once the
costs? Is there any incidence in the supplying due to preserve of just the mighty, is nowadays common practice
geographical distances that separate the supplier from the for an increasing number of enterprises of all sorts and sizes.
client? Which? Has your company faced problems related to Many companies develop and manufacture products to be
fees or import norms of this product? Have there been commercialized simultaneously in different countries,
understanding problems with the foreign supplier? What kind importing raw material, components or semi-finished

340
Key problems of purchasing and post-purchase behavior Journal of Business & Industrial Marketing
Carrete Lucero Volume 23 · Number 5 · 2008 · 332 –341

products from all over the world in an effort to stay ahead of information on the supplier’s culture to understand the way
ever-growing competition. they think).
Despite difficulties caused by extra transport costs, From the purchaser’s point-of-view, the study emphasizes
grapping with legal imperatives, import/export the importance of considering the business culture of the
documentation and lead times extended because of the supplier company at the moment of the evaluation of sources.
distance the product has to travel, managers in the study This aspect is often neglected due to its intangible character –
perceived cultural problems to be the biggest obstacle to the even though it affects some important phases of the
expansion of international purchasing – a finding which international transaction, including the understanding of
contrasts with previous studies which concluded cultural buyer’s needs or the fulfillment of the agreement transaction.
heterogeneity had fewer issues for industrial buyers. The cultural distance should be viewed by purchasing
Cultural difficulties can arise both in purchasing negotiation departments as an issue that needs proper attention to
and purchasing management. During the purchasing determine appropriate actions. Besides the cultural
negotiation, language differences can affect the definition of divergence, the buyer should have a clear comprehension of
the technical specifications. It is no simple matter defining other implications of international purchases. For example,
the delays or lead-time problems from products coming from
product specifications in a foreign language.
afar and the added cost related to international transport,
Misunderstandings can appear with suppliers acting in good
fluctuations in the exchange rates, quality problems or
faith. As the study discovered, different understanding of
exceptional stocks. This clear comprehension will provide
concepts such as “quality,” “fashion,” “design,” “urgent
buying centers with a better organization through the buying
deliveries,” can cause difficulties in making clear the buyer’s process making it more effective and efficient.
real necessities.
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

The supplier should be also aware of all the implications


On the management of purchasing, the culture of foreign derived from international purchases. This knowledge might
suppliers could also create difficulties – lead times being the be incorporated into the selling strategies to improve
most recurrent in the study. Buyers stated that lead times of customer loyalty, sales prospects or margins. If the supplier
foreign suppliers were particularly long, beyond the technical wants repeated purchases from the buyer, an effort should be
complexity of the product or the geographic distance. made to understand the needs of his client, to respect any
Carrete Lucero says the management of the cultural agreements and to seek a way to help the buyer in handling
divergence could have different approaches: a people’s the problems of the international purchase process.
approach (e.g. conduct the purchases through channel
intermediaries familiarized with the foreign culture, recruit (A précis of the article “A relationship model between key problems
personnel that speak the foreign language fluently, support of international purchasing and the post-purchase behavior of
from members of the firm’s branches in the supplying industrial firms”. Supplied by Marketing Consultants for
country), and an information approach (e.g. search of Emerald.)

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com


Or visit our web site for further details: www.emeraldinsight.com/reprints

341
This article has been cited by:

1. Jaana Tähtinen, Keith Blois. 2011. The involvement and influence of emotions in problematic business relationships. Industrial
Marketing Management 40:6, 907-918. [CrossRef]
Downloaded by University of Phoenix At 23:12 22 January 2015 (PT)

You might also like