Understanding Industrial Buyer Behavior in Small and Medium-Sized Enterprises Operating in the Iranian Market

Hamed  Hajiaghabozorgi; Alireza Rousta; Ahmad  Askari; Nader  Gharibnavaz

Authors

Hamed Hajiaghabozorgi Department of Business Management, ShQ.C., Islamic Azad University, Shahr-e Qods, Iran Author https://orcid.org/0009-0004-7634-4413
Alireza Rousta Department of Business Management, ShQ.C., Islamic Azad University, Shahr-e Qods, Iran Author https://orcid.org/0000-0001-8981-4374
Ahmad Askari Department of Business Management, Lam.C., Islamic Azad University, Lamerd, Iran Author https://orcid.org/0000-0002-2722-8369
Nader Gharibnavaz Department of Business Management, ShQ.C., Islamic Azad University, Shahr-e Qods, Iran Author https://orcid.org/0000-0002-9227-5831

Keywords:

industrial buyer behavior, organizational buyer behavior, small and medium, sized enterprises, industrial marketing, purchasing decision, making, business relationships

Abstract

In industrial marketing, understanding buyer behavior and the factors influencing buyers’ decision-making is a fundamental requirement for establishing and maintaining business relationships. Awareness of why and how industrial customers make purchasing decisions enables firms to formulate more effective strategies for attracting customers, retaining them, and developing business relationships in accordance with their needs and expectations. Accordingly, the present study aimed to develop and test a model of industrial buyer behavior in small and medium-sized enterprises (SMEs) operating in the Iranian market. In terms of methodological approach, this study employed a mixed-methods design (qualitative–quantitative), and in terms of purpose, it was applied research. In the qualitative phase, the study population consisted of experts in industrial procurement and purchasing, university faculty members, and managers working in SMEs. Participants were selected through purposive and judgmental sampling. At this stage, 21 semi-structured interviews were conducted, and the data were analyzed using thematic analysis. In the quantitative phase, the statistical population consisted of SMEs operating in the Iranian market, and 392 completed questionnaires were collected and analyzed. Quantitative data were analyzed using structural equation modeling (SEM) with SmartPLS software. Data were collected through both library-based and field methods. The findings indicated that industrial buyer behavior and decision-making in SMEs are influenced by five major categories of factors: environmental factors, organizational factors, purchase characteristics, seller characteristics, and relationship-enhancing factors. Based on these factors, a model of industrial buyer behavior in SMEs was developed, and the relationships among the model components were subsequently tested and confirmed in the quantitative phase. The results demonstrate that industrial buyer behavior in SMEs is a multidimensional phenomenon and is not influenced solely by product characteristics or price. Rather, environmental and organizational conditions, characteristics of the purchasing process, seller attributes, and the quality and continuity of the business relationship all contribute to the formation of purchasing decisions. Therefore, firms operating in industrial markets can develop more effective strategies for understanding buyer needs, improving the sales process, and strengthening long-term business relationships by simultaneously focusing on these five categories of factors.

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