Green capabilities and procurement practices: paving the way for environmental sustainability

Authors

  • Shahid Imran
  • Nor Bakhriah Binti Sarbani
  • Charles Tsikada

DOI:

https://doi.org/10.34117/bjdv10n6-070

Keywords:

sustainability, green capabilities, green procurement practices, environment, supply chain

Abstract

The significance of sustainability awareness in society has captured the attention of both scholars and professionals. The pursuit of environmental sustainability has transitioned from an aspiration to an urgent matter. Understanding the interplay between green capabilities and green procurement practices has become key to improving performance.  This study investigated the nexus between green capabilities and the adoption of green procurement practices to improve their collective impact on environmental sustainability. Green capabilities and green purchasing practices were theorized. A conceptual framework was developed to address the sustainability problems in the supply chain. Quantitative research with a structured questionnaire was used to collect data from 203 respondents. The unity of analysis was the supply chain professionals working in fast moving markets in Oman. Validity and reliability of data was determined. A structural equation modelling was applied to analyse the data. The results show that the incorporation of green capabilities into green purchasing practices can lead to environmental sustainability. These findings provide supply chain managers with insights into implementing environmentally friendly practices within their respective entities. The government of Oman as a major purchaser of goods and services can lead by example by incorporating green procurement principles into its own procurement processes. Thus, the government can stimulate demand for sustainable goods and encourage private sector adoption of green practices.

References

AHMED, W., Ashraf, M. S., Khan, S. A., Kusi-Sarpong, S., Arhin, F. K., Kusi-Sarpong, H., & Najmi, A. (2020). Analyzing the impact of environmental collaboration among supply chain stakeholders on a firm’s sustainable performance. Operations Management Research, 13, 4-21.

BAG, S., Dhamija, P., Gupta, S., & Sivarajah, U. (2021). Examining the role of procurement 4.0 towards remanufacturing operations and circular economy. Production Planning & Control, 32(16), 1368-1383.

BARRALES‐MOLINA, V., Benitez‐Amado, J., & Perez‐Arostegui, M. N. (2010). Managerial perceptions of the competitive environment and dynamic capabilities generation. Industrial Management & Data Systems, 110(9), 1355-1384.

CABRAL, C., & Dhar, R. L. (2019). Green competencies: Construct development and measurement validation. Journal of Cleaner Production, 235, 887-900.

DZHENGIZ, T., & Niesten, E. (2020). Competences for environmental sustainability: A systematic review on the impact of absorptive capacity and capabilities. Journal of business ethics, 162(4), 881-906.

HARIRAM, N. P., Mekha, K. B., Suganthan, V., & Sudhakar, K. (2023). Sustainalism: An integrated socio-economic-environmental model to address sustainable development and sustainability. Sustainability, 15(13), 10682.

HENDERSON, K., & Loreau, M. (2023). A model of Sustainable Development Goals: Challenges and opportunities in promoting human well-being and environmental sustainability. Ecological Modelling, 475, 110164.

HOFFMAN, A. J. (2000). Institutional Evolution and Change: Environmentalism and the U.S. Chemical Industry. Academy of Management Journal, 43(4), 646-663.

KHAN, S. A. R., Yu, Z., & Farooq, K. (2023). Green capabilities, green purchasing, and triple bottom line performance: Leading toward environmental sustainability. Business Strategy and the Environment, 32(4), 2022-2034.

KHAN, S. A. R., Yu, Z., & Farooq, K. (2023). Green capabilities, green purchasing, and triple bottom line performance: Leading toward environmental sustainability. Business Strategy and the Environment, 32(4), 2022-2034.

LĂZĂROIU, G., Ionescu, L., Uță, C., Hurloiu, I., Andronie, M., & Dijmărescu, I. (2020). Environmentally responsible behavior and sustainability policy adoption in green public procurement. Sustainability, 12(5), 2110.

LIU, Y., Zhu, Q. and Seuring, S., 2017. Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity. International Journal of Production Economics, 187, pp.182-195.

MADY, K., Battour, M., Aboelmaged, M., & Abdelkareem, R. S. (2023). Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation. Journal of Cleaner Production, 417, 137928.

MCMURRAY, A. J., Islam, M. M., Siwar, C., & Fien, J. (2014). Sustainable procurement in Malaysian organizations: Practices, barriers, and opportunities. Journal of Purchasing and Supply Management, 20(3), 195-207.

MIKHAYLOV, A., Moiseev, N., Aleshin, K., & Burkhardt, T. (2020). Global climate change and greenhouse effect. Entrepreneurship and Sustainability Issues, 7(4), 2897.

MISHRA, P., & Yadav, M. (2021). Environmental capabilities, proactive environmental strategy and competitive advantage: A natural-resource-based view of firms operating in India. Journal of Cleaner Production, 291, 125249.

MOHAGHEGH, M., Blasi, S., & Groessler, A. (2021). Dynamic capabilities linking lean practices and sustainable business performance. Journal of Cleaner Production, 322, 129073.

MOLDAN, B., Janoušková, S., & Hák, T. (2012). How to understand and measure environmental sustainability: Indicators and targets. Ecological indicators, 17, 4-13.

OWUSU, P. A., & Asumadu-Sarkodie, S. (2016). A review of renewable energy sources, sustainability issues and climate change mitigation. Cogent Engineering, 3(1), 1167990.

PAGELL, M., & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2), 37-56.

PORTER, M. E., & van der Linde, C. (1995). Toward a New Conception of the Environment-Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97-118.

RAMANATHAN, U., Bentley, Y., & Pang, G. (2014). The role of collaboration in the UK green supply chains: an exploratory study of the perspectives of suppliers, logistics and retailers. Journal of cleaner production, 70, 231-241.

RANE, S. B., & Thakker, S. V. (2020). Green procurement process model based on blockchain–IoT integrated architecture for a sustainable business. Management of Environmental Quality: An International Journal, 31(3), 741-763.

ROBERTSON, M. (2021). Sustainability principles and practice. Routledge.

RUSSO, M. V., & Fouts, P. A. (1997). A Resource-Based Perspective on Corporate Environmental Performance and Profitability. Academy of Management Journal, 40(3), 534-559.

SERRANO-GARCIA, J., Bikfalvi, A., Llach, J., & Arbelaez-Toro, J. J. (2021). Orchestrating capabilities, organizational dimensions, and determinants in the pursuit of green product innovation. Journal of Cleaner Production, 313, 127873.

SHRIVASTAVA, P. (1995). The Role of Corporations in Achieving Ecological Sustainability. Academy of Management Review, 20(4), 936-960.

VACHON, S. (2007). Green supply chain practices and the selection of environmental technologies. International journal of production research, 45(18-19), 4357-4379.

WALKER, H., Di Sisto, L., & McBain, D. (2012). Drivers and barriers to environmental supply chain management practices: Lessons from the public and private sectors. Journal of Purchasing and Supply Management, 18(4), 258-269.

YOOK, K. H., Choi, J. H. and Suresh, N. C. (2018). Linking green purchasing capabilities to environmental and economic performance: The moderating role of firm size. Journal of Purchasing and Supply Management 24(4). 326-337.

ZHU, Q., & Sarkis, J. (2004). Relationships between operational practices and performance among early adopters of green supply chain management practices in Chinese manufacturing enterprises. Journal of operations management, 22(3), 265-289.

ZHU, Q., Sarkis, J., & Lai, K.-H. (2017). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 23(4), 186-197.

Downloads

Published

2024-06-27

How to Cite

Imran, S., Sarbani, N. B. B., & Tsikada, C. (2024). Green capabilities and procurement practices: paving the way for environmental sustainability. Brazilian Journal of Development, 10(6), e70820 . https://doi.org/10.34117/bjdv10n6-070

Issue

Section

Original Papers