Sustainable procurement practices and sustainable performance the role of regulations

Abstract

In the face of escalating environmental concerns and the imperative for responsible corporate behaviour, organizations are increasingly turning their attention to sustainable procurement practices as a pivotal component of their business strategies. This study investigates the intricate relationship between sustainable procurement practices and their impact on sustainable performance. Furthermore, the research explores the moderating role of regulations in shaping the effectiveness of these sustainable procurement practices. Drawing on a comprehensive review of the existing theories (institutional theory) and literature, this research identifies the multifaceted dimensions of sustainable procurement practices and their potential influence on sustainable performance. The study also delves into the moderating role of regulations in the relationship between sustainable procurement practices and sustainable performance. The research scrutinizes how the stringency and clarity of regulations impact the effectiveness of sustainable procurement practices in driving sustainable performance. The study adopted a quantitative research approach. It employed both descriptive and inferential statistics. A simple random sampling was used to select of 191 manufacturing firms in the greater Accra region of Ghana. All of the collected data was processed using the Statistical Package for Social Sciences (SPSS) version 26 software. The analysis demonstrated a significant and positive relationship between sustainable procurement practices (supplier involvement, ethical procurement and green procurement) and sustainable performance of manufacturing firms sampled from the Greater Accra region of Ghana. Also, the analysis uncovered a positive and significant moderating role of regulations in strengthening the relationship between sustainable procurement and sustainable performance of manufacturing firms. It is recommended that manufacturing firms should prioritize sustainable procurement practices, incorporating clear criteria for suppliers and fostering collaboration. Regulators should enforce stringent sustainability standards, incentivizing compliance and supporting industry-wide adoption to drive environmental responsibility and competitiveness. This collective approach ensures a resilient and environmentally conscious manufacturing sector.