Small and medium-sized firms' import behavior: The case of Danish industrial purchasers

This paper focuses on the foreign purchase behavior of small and medium-sized industrial firms in a small European country, and is guided by three main research issues: (1) to what extent are small and medium-sized firms involved in international sourcing; (2) how do small and medium-sized firms initially make contact with foreign suppliers, and what are their motives for choosing a supplier; and (3) how do small and medium-sized firms perceive relationships with foreign suppliers in terms of perceived problems and cooperation? Through a survey administered in Denmark, the results show that small and medium-sized industrial firms are highly involved in international purchasing both within the European Union and abroad. Surprisingly, this involvement does not appear to be significantly driven by lack of domestic availability. Instead, the primary drivers for choosing a foreign supplier are price and quality. Finally, product adaptation appears to be a significant element of relationship formation between importers and their suppliers. The paper concludes with a discussion of results, implications, and directions for future research.