Determinants of green procurement implementation and its impact on firm performance

Abstract

Purpose The purpose of this paper is twofold: first, to identify the determinants that influence adoption of green procurement (GP) practices in Indian firms; and second, to investigate the impact of adoption of GP practices on various parameters of firm performance. Design/methodology/approach Based on the extant literature on green supply chain management practices, an online field survey questionnaire was developed. The primary intent of the survey was to identify and examine the factors behind adoption of GP initiatives and also to study the impact of its adoption on firm performance. The web-survey was sent to several hundred Indian manufacturing firms. The usable responses were then analyzed using multivariate analysis approach. Findings The results indicate that internal environmental concern, supplier collaboration, customer pressure, competitive pressure and management support had positive influence on GP. The second finding was that GP adoption had positive relationships with all selected parameters of firm performance. Research limitations/implications The study was primarily aimed at manufacturing sector and not on the non-manufacturing sector, and therefore, some valuable insights may have been lost. Originality/value This paper examines the relationship between the drivers of GP practices and degree of GP; a relatively unexplored area in the developing economy. It further investigates the impact of GP implementation on various dimensions of firm performance, which has also received limited attention in extant literature. Finally, it also adds value to the nascent literature on GP practices in India.