Determinants of Wholesale traders' participation in the purchasing consortium in Mbarara City, Uganda

Abstract

Research Aims: This study aims to investigate the factors influencing the participation of wholesale traders in purchasing consortiums in Mbarara City, Uganda. The research focuses on identifying the determinants, barriers, and opportunities associated with adopting this mechanism in the wholesale trading sector. Design/methodology/approach: Utilizing a qualitative approach, this study delves into the precursors, barriers, and opportunities that shape wholesale traders' involvement in purchasing consortiums. The research explores socio-demographic factors, such as income, ethnicity, and business longevity, to uncover key determinants of success in this context. Research Findings: The findings reveal that socio-demographic factors play a pivotal role in determining wholesale traders' success in participating in purchasing consortiums. Barriers and opportunities within the Mbarara City context are identified, shedding light on the potential for enhancing buying strategies through consortiums. Theoretical Contribution/Originality: This research contributes to the existing literature by examining the underexplored adoption of purchasing consortiums among wholesale traders in developing countries. The study provides insights into the unique sociodemographic determinants influencing participation, offering a novel perspective on the potential benefits of this mechanism. Research limitation and implication: Limitations include the focus on a specific city and the qualitative nature of the study. Future research should consider quantitative approaches and extend the investigation to other developing countries to enhance generalizability. To promote group buying and support business growth in Mbarara City, the study recommends that city authorities create an enabling environment and facilitate the organization of traders for participation in purchasing consortiums. This intervention can alleviate business burdens and foster regional growth and development