Drivers of Sustainable Procurement Practices and Their Effect on Organisational Performance in the Northern Region of Ghana
Williams Kwame Boateng
*
Department of Procurement and Supply Chain Management, School of Business, University for Development Studies, Tamale, Ghana.
Michael Kwakye-Mensah
Department of Management, Information Systems and Quantitative Methods, Collat School of Business, University of Alabama at Birmingham, United States of America.
*Author to whom correspondence should be addressed.
Abstract
Sustainable procurement integrates economic, environmental and social considerations into purchasing decisions and may contribute to organisational performance. This study examined the drivers of sustainable procurement practices and their relationship with organisational performance among selected public-sector organisations in the Tamale Metropolis of Ghana. It focused on organisational and external factors, including management support, funding, supplier availability and relationships, environmental regulation, government enforcement, supplier resistance, expertise and training. A quantitative survey approach was used, with data collected through a structured questionnaire and analysed using descriptive statistics and regression analysis. The findings indicated that sustainable procurement practices were positively associated with organisational performance. The overall regression model showed that sustainable procurement practices explained 73.1% of the variance in organisational performance. Among the dimensions examined, green purchasing, ethical sourcing and supplier involvement accounted for 57.5%, 49.0% and 61.5% of the variance in organisational performance, respectively. Respondents also identified adequate funding, lower implementation costs, access to sustainable suppliers, appropriate environmental regulation, strong supplier relationships, effective government regulation and enforcement, top-management support, and expertise and training as relevant implementation drivers. The study indicates that effective sustainable procurement depends on the interaction of internal organisational capacity and external institutional conditions and that stronger implementation is associated with improved organisational outcomes within the study setting.
Keywords: Sustainable procurement, drivers, organisational performance, suppliers