Purpose - The purpose of this study is to contribute with knowledge about the factors

that influence purchasing practices. Then give small firms guidelines for the design of

purchasing procedures that facilitates the purchaser to take decisions integrated with

the company's strategy. In order to achieve the purpose, the study should answer the

following questions:

1. What factors influence the purchasing practices of small firms?

2. How can the purchasing procedures be designed to facilitate the decision for

purchasers of small firms?

Method and implementation - A case study and literature studies have been

performed to achieve the purpose of the study. The case study was made through

interviews and observation of a wholesaler who is classified as a small business and

has purchase as one of its main functions. The collected data have been analyzed

against the theoretical framework and thus generated the study's results.

Results - The study resulted in 16 internal factors that influence purchasing practices

of small firms. The theoretical framework covers all the factors and impact has been

demonstrated on the case object. Guidelines based on the influencing factors have

been developed and presented in five steps for design of the purchasing procedures.

Each guideline contains an issue, a description, affecting factors, and tools for

managing the factors. The study demonstrates that the design of purchasing

procedures at small businesses is based in the understanding of the company's overall

strategy where the focus has been on competitive advantages. Further it including

technology, expertise, information structure and the number of articles and suppliers

etc.

Implications - The guidelines can help small businesses understand what it is that

affects their purchasing procedures and thus get the opportunity to improve them. The

guidelines are so general that they can be applied to small businesses in all industries

that use any type of purchase. However, demands have been placed on management to

develop strategies as well as the buyer to have knowledge of the firm in question.

Limitations - The case study design consisted of one small firm where two units of

analysis were examined. Case studies on more small firms and more analysis units

would have affected the generalizability when various firms have varying conditions.

Originality - The guidelines presented are, according to the authors' knowledge, the

first one targeting purchasing in small businesses.

Keywords - Purchase, small business, strategy, purchasing procedures