Factors Influencing the Industrial Purchasing Decision within Algerian Industrial Organizations: An Analytical Study of the Case of Sonatrach Group

Abstract

This study aims to analyze the factors influencing the industrial purchasing decision within Algerian industrial organizations, through shedding light on the nature of this decision and its basic determinants. The study started from a main problmatic stating: what are the factors influencing the industrial purchasing decision, and to what extent does each of them affect in directing this decision inside the Algerian industrial organization? In order to achieve the objectives of the study, the descriptive-analytical method was relied on, through treating the theoretical side based on the related literatures, in addition to an applied study that consisted in analyzing the case of Sonatrach Group relying on secondary data derived from official reports. The study has reached that the industrial purchasing decision is influenced by a set of interrelated factors, headed by technical factors which are related to the quality of inputs and the requirements of industrial activity, followed by economic factors related to cost and efficiency, while organizational and environmental factors play a moderate role in directing the decision, whereas the influence of behavioral factors remains relatively limited. These results highlight that the industrial purchasing decision within large organizations is characterized by a rational and technical nature, and is largely subject to objective considerations, which imposes on industrial organizations the necessity to improve decision-making mechanisms in a way that enhances its competitive efficiency.