IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i12p2281-d122716.html
   My bibliography  Save this article

Do Sustainable Procurement Practices Improve Organizational Performance?

Author

Listed:
  • Md. Mazharul Islam

    (Department of Finance, College of Business, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Abalala Turki

    (Department of Economics, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Md. Wahid Murad

    (UniSA College, University of South Australia, Adelaide, SA 5001, Australia)

  • Azharul Karim

    (Science and Engineering Faculty, Queensland University of Technology, Brisbane CBD, Brisbane, QLD 4001, Australia)

Abstract

This exploratory study investigates the impacts of sustainable procurement (SP) practices on organizational performance by using the established scales of SP practices and organizational performances, taking Saudi Arabia as a case country. Data used in the study was collected through a questionnaire survey from procurement directors and managers. Regression and multivariate-based path analysis was performed to assess the impacts of SP practices. From the preliminary results, a significant association between combined SP practices and organizations’ financial performance was found. A mediational analysis was conducted to discover the direct and indirect effects of SP practices on financial performance. There was no evidence of a significant direct impact of the summary measures of SP practices on financial performance, while the indirect impact of SP practices via organizational nonfinancial performance on financial performance was found to be statistically significant. This study contributes to SP practice literature by developing a conceptual model for the outcomes of SP practices and establishing statistically significant relationships between SP practices, organizational financial performance, and mediating factors.

Suggested Citation

  • Md. Mazharul Islam & Abalala Turki & Md. Wahid Murad & Azharul Karim, 2017. "Do Sustainable Procurement Practices Improve Organizational Performance?," Sustainability, MDPI, vol. 9(12), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2281-:d:122716
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/12/2281/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/12/2281/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Linda W.P. Ho & Nicholas M. Dickinson & Gilbert Y.S. Chan, 2010. "Green procurement in the Asian public sector and the Hong Kong private sector," Natural Resources Forum, Blackwell Publishing, vol. 34(1), pages 24-38, February.
    2. Helen Walker & Wendy Phillips, 2009. "Sustainable procurement: emerging issues," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 2(1), pages 41-61.
    3. Karim, M.A. & Smith, A.J.R. & Halgamuge, S.K. & Islam, M.M., 2008. "A comparative study of manufacturing practices and performance variables," International Journal of Production Economics, Elsevier, vol. 112(2), pages 841-859, April.
    4. Samson, Danny & Ford, Steve, 2000. "Manufacturing practices and performance: Comparisons between Australia and New Zealand," International Journal of Production Economics, Elsevier, vol. 65(3), pages 243-255, May.
    5. Abdel-Maksoud, Ahmed & Dugdale, David & Luther, Robert, 2005. "Non-financial performance measurement in manufacturing companies," The British Accounting Review, Elsevier, vol. 37(3), pages 261-297.
    6. Minkyun Kim & Sangmi Chai, 2017. "Implementing Environmental Practices for Accomplishing Sustainable Green Supply Chain Management," Sustainability, MDPI, vol. 9(7), pages 1-17, July.
    7. Edeltraud Guenther & Lilly Scheibe & Vera Greschner Farkavcová, 2010. "“The Hurdles Analysis” as an instrument for improving sustainable stewardship," Management Research Review, Emerald Group Publishing Limited, vol. 33(4), pages 340-356, March.
    8. Gavronski, Iuri & Klassen, Robert D. & Vachon, Stephan & Nascimento, Luis Felipe Machado do, 2011. "A resource-based view of green supply management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 872-885.
    9. Kazuma Murakami & Tatsuo Kimbara, 2015. "Does CSR Enhance the Transfer of Environmental Practices to Overseas Subsidiaries ?," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 4(2), pages 1-8, October.
    10. Bulent Menguc & Seigyoung Auh & Lucie Ozanne, 2010. "The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm's Performance," Journal of Business Ethics, Springer, vol. 94(2), pages 279-298, June.
    11. da Cruz, Nuno Ferreira & Marques, Rui Cunha, 2014. "Revisiting the determinants of local government performance," Omega, Elsevier, vol. 44(C), pages 91-103.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Md. Mazharul Islam & Majed Alharthi, 2020. "Relationships among Ethical Commitment, Ethical Climate, Sustainable Procurement Practices, and SME Performance: An PLS-SEM Analysis," Sustainability, MDPI, vol. 12(23), pages 1-25, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohammad Mazharul Islam & Essam Habes & Azharul Karim & Syed Omar bin Syed Agil, 2016. "Quality certification and company performance – the newly developed country experience," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(4), pages 628-644, July.
    2. Shengguo Xu & Chunli Chu & Meiting Ju & Chaofeng Shao, 2016. "System Establishment and Method Application for Quantitatively Evaluating the Green Degree of the Products in Green Public Procurement," Sustainability, MDPI, vol. 8(9), pages 1-12, September.
    3. Constantine S. Katsikeas & Constantinos N. Leonidou & Athina Zeriti, 2016. "Eco-friendly product development strategy: antecedents, outcomes, and contingent effects," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 660-684, November.
    4. Ammar Masood & Mohsin Altaf & Mohsin Raza Khan & Tanveer Illahi & Abdul Qayyum, 2021. "Industrial Environmental Performance: Mapping And Systematic Literature Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(4), pages 76-100, December.
    5. Davis-Sramek, Beth & Robinson, Jessica L. & Darby, Jessica L. & Thomas, Rodney W., 2020. "Exploring the differential roles of environmental and social sustainability in carrier selection decisions," International Journal of Production Economics, Elsevier, vol. 227(C).
    6. Per Engelseth & Richard Glavee-Geo & Artur Janusz & Enoch Niboi, 2020. "The Emergent Nature of Networked Sustainable Procurement," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    7. Yu-Muo Lee & Jin-Li Hu, 2018. "Integrated Approaches for Business Sustainability: The Perspective of Corporate Social Responsibility," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    8. Javier Martínez-del-Río & José Céspedes-Lorente, 2014. "Competitiveness and Legitimation: The Logic of Companies going Green in Geographical Clusters," Journal of Business Ethics, Springer, vol. 120(1), pages 131-146, March.
    9. Carolyn‐Dung Thi Thanh Tran & Brian Dollery, 2021. "All in the Mind: Citizen Satisfaction and Financial Performance in the Victorian Local Government System," Australian Accounting Review, CPA Australia, vol. 31(1), pages 51-64, March.
    10. Christl, Michael & Köppl-Turyna, Monika & Kucsera, Dénes, 2018. "Public sector efficiency in Europe: Long-run trends, recent developments and determinants," Working Papers 14, Agenda Austria.
    11. Caitlin O’Loughlin & Léopold Simar & Paul W. Wilson, 2023. "Methodologies for assessing government efficiency," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 4, pages 72-101, Edward Elgar Publishing.
    12. Zhiwei Yan & Xuerong Peng & Seoki Lee & Leibao Zhang, 2023. "How do multiple cognitions shape corporate proactive environmental strategies? The joint effects of environmental awareness and entrepreneurial orientation," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1592-1617, September.
    13. Pakvalit Kurkoon & Daranee Pimchangthong & Veera Boonjing, 2015. "A Conceptual Framework for Individual Green Information Technology Consumption and its Impact," Journal of Business & Management (COES&RJ-JBM), , vol. 3(3), pages 388-396, July.
    14. Jamalnia, Aboozar & Gong, Yu & Govindan, Kannan, 2023. "Sub-supplier's sustainability management in multi-tier supply chains: A systematic literature review on the contingency variables, and a conceptual framework," International Journal of Production Economics, Elsevier, vol. 255(C).
    15. Jacob Hörisch & Jana Kollat & Steven A. Brieger, 2017. "What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation," Small Business Economics, Springer, vol. 48(1), pages 47-69, January.
    16. repec:ipg:wpaper:2014-496 is not listed on IDEAS
    17. Olejniczak Jarosław, 2019. "Efficiency vs. The Level of Per Capita Income of Urban-Rural Municipalities in Poland," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 15(1), pages 20-29, March.
    18. Graziano Abrate & Federico Boffa & Fabrizio Erbetta & Davide Vannoni, 2018. "Voters’ Information, Corruption, and the Efficiency of Local Public Services," Sustainability, MDPI, vol. 10(12), pages 1-22, December.
    19. Tantawy Moussa & Amir Allam & Said Elbanna & Ahmed Bani‐Mustafa, 2020. "Can board environmental orientation improve U.S. firms' carbon performance? The mediating role of carbon strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 72-86, January.
    20. Adijati Utaminingsih & Sony Heru Priyanto & John J.O.I. Ihalauw & Linda Kusuma, 2020. "Green Business Behaviour, Green Technologies, and Sustainability in SMEs," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 417-424.
    21. Bilal Anwar & Zhongdong Xiao & Sharmin Akter & Ramiz-Ur Rehman, 2017. "Sustainable Urbanization and Development Goals Strategy through Public–Private Partnerships in a South-Asian Metropolis," Sustainability, MDPI, vol. 9(11), pages 1-26, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2281-:d:122716. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.