Determinants of Buying Behaviour in the Public Sector in Nigeria

For several decades, organisational buying decisions have been modelled using assumptions hinged on the rational economic theory of the firm, one of which argues that firms are rational entities who will always be objective in their buying decisions. In the recent past however, evidence from interdisciplinary empirical studies based on behavioural theory of the firm as well as behavioural economics have raised questions on the ability of rational economics to fully explain the observed irrational buying behaviour of firms, thus calling for more empirical research on the buying decision behaviour of non-commercial firms (especially in non-western contexts where few studies are currently found to exist). In line with the current gap in the literature, this thesis aimed at identifying and assessing the relative importance of a broad range of behavioural and non-economic variables that can explain the strategic supplier selection behaviour of public sector organisations in Nigeria, and the impact such decisions have on performance. Using the organisational buyer determinant framework developed by Webster and Wind (1972), this study develops and test a conceptual model comprising government policies and party politics (environmental determinants), time pressure and social ties (social determinants), position and organisational ethical work climates (organisational determinants), and personal values and personal experience (individual determinants) as important causal-explanatory factors of public sector buying behaviour. The analysis of survey response data from a national sample of 341 senior staff and top management team (TMT) members in 40 public sector organisation in Nigeria shows that government policy requirements, social ties of organisational actors, party politics, decision-makers’ experience, and the perception of instrumental ethical work climates are respectively the most important determinants of strategic supplier selection decisions, followed in descending order of importance by: the perception of rules ethical work climates, self-enhancement personal values, position on organisational structure, self-transcendent personal values and the perception of time pressure. Findings also show that availability of requisite funding, rather than which supplier is selected per se, is more important in determining performance. The implications of this study’s findings to theory and practice are also discussed.