Sustainable procurement model for publicly funded construction projects in developing nations – a structural equation modeling approach

Abstract

Procurement is established as one of the critical factors for attaining sustainable development. Previous studies indicate that the uptake of sustainable procurement by the construction industry in developing nations is minimal. Also, these studies have not produced a consensus of constructs to measure its adoption. This paper identifies and evaluates the constructs determining sustainable procurement and hypothesizes a model that integrates these constructs. The study hypothesizes that a sustainable procurement model for publicly funded construction projects is a six-factor model (Model 1.0). Data obtained through a survey questionnaire from three hundred and twenty professionals were subjected to structural equation modeling (SEM) technique. The result produced a confirmed five-factor model (Model 2.0). Further SEM analysis reveals that the Rho and Cronbach's alpha coefficients were both above 0.70 criterion. The test statistic (Z) investigation shows that the constructs have a direct influence on sustainable procurement. The study recommends that the regulatory environment, construction industry development, organizational orientation, procurement method selection, and adoption of newer technologies are critical in achieving sustainable procurement and so should guide policy focus in Nigeria. Another novelty of the study is that the new constructs- construction industry development and adoption of newer methodologies, were significant in the model.