The Value of Personal Communication VS Performance in Supplier Relationships in a Digital Era : A Multiple Case Study Explaining the Online Organizational Buying Behaviour in Sweden & UK when Purchasing Display Material

Problem: The increasing online operations of the B2B market has led to companies being able to operate all over the world, making them exposed to various markets with different preferences of supplier relationships. For that reason, it is important for companies to consider aspects such as digitalization, culture and buyer-seller relationships when conducting business with foreign companies. One industry that has been reluctant towards this online shift is the display materials industry. However, during recent years display material suppliers operating online have become more successful. Therefore, understanding companies purchasing process when buying display material online is necessary. Purpose: This thesis aims to explain and investigate the online organizational buying behavior of British and Swedish organizations while purchasing display materials and several factors that influence it, such as culture, digitalization and buyer-seller relationships are examined. Method: A qualitative approach with semi-structured interview was used to conduct this research. Eight participants from British and Swedish organizations who are customers of the display material company SignMax were interviewed. The data collected has been analyzed together with literature on online organizational buying behavior and the influencing factors. Results: The findings of this research showed that the level of product involvement and national culture decides and forms the importance of the purchase, the purchasing process and the type of supplier-relationship desired. Additionally, the attitude towards digitalization and the experience of online purchases determine the level of personal contact and support. Based on the empirical analysis the findings showed that for the cases of UK and Sweden, UK was more performance-oriented in their supplier relationships and highly valued ease of use and a smooth purchasing process. Sweden on the other hand, focused more on soft-values such as personal contact and support