Impact of Green Procurement on Purchasing Performance
(Special reference to the Apparel Manufacturing Industry in Sri Lanka

Authors: Ms. D.M.S.M. Dasanayake, Prof. T.S.M. Amarasena

Received: 02 February 2022 / Accepted: 21 April 2022 / Published online: 30 July 2022

Abstract

This study will explore the impact of green procurement on purchasing by special reference to the apparel manufacturing industry in Sri Lanka. In order to achieve the stated purpose, the researcher developed three research questions, three research objectives, and three hypotheses. Based on institutional theory and natural resource-based view theory, this study constructs a theoretical framework to clarify the mechanisms underlying the relationship between variables. Utilizing a sample of two hundred and fifty-two Sri Lankan professionals from the large-scaled apparel manufacturing sector, a structural model is outlined and tested using structural equation modeling (SEM). The study results demonstrate that green procurement has a positive and significant impact on purchasing performance. Further, the survey result recommended that the relationship between product-based green procurement and process-based green procurement on purchasing performance was positive and statistically significant. Consequently, organizations striving to achieve better purchasing performance should focus more on executing green procurement practices. These two kinds of procurement capabilities present two facets of a firm’s practice on green procurement, which complements rather than substitutes each other. The measurements developed in this study can capture the different aspects of purchasing performance, thus not only enabling use by practitioners to identify the immediate outcomes of it but also to understand its impacts on organizational performance.

Keywords: Product-based green procurement, Process-based green procurement, Purchasing performance