Next Article in Journal
Effect of Environmental Regulation Stringency on the Pulp and Paper Industry
Previous Article in Journal
Cover Crop Residue Amount and Quality Effects on Soil Organic Carbon Mineralization
Article Menu
Issue 12 (December) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(12), 2281; https://doi.org/10.3390/su9122281

Do Sustainable Procurement Practices Improve Organizational Performance?

1
Department of Finance, College of Business, King Abdulaziz University, Jeddah 21589, Saudi Arabia
2
Department of Economics, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia
3
UniSA College, University of South Australia, Adelaide, SA 5001, Australia
4
Science and Engineering Faculty, Queensland University of Technology, Brisbane CBD, Brisbane, QLD 4001, Australia
*
Author to whom correspondence should be addressed.
Received: 23 October 2017 / Revised: 28 November 2017 / Accepted: 6 December 2017 / Published: 13 December 2017
View Full-Text   |   Download PDF [652 KB, uploaded 14 December 2017]   |  

Abstract

This exploratory study investigates the impacts of sustainable procurement (SP) practices on organizational performance by using the established scales of SP practices and organizational performances, taking Saudi Arabia as a case country. Data used in the study was collected through a questionnaire survey from procurement directors and managers. Regression and multivariate-based path analysis was performed to assess the impacts of SP practices. From the preliminary results, a significant association between combined SP practices and organizations’ financial performance was found. A mediational analysis was conducted to discover the direct and indirect effects of SP practices on financial performance. There was no evidence of a significant direct impact of the summary measures of SP practices on financial performance, while the indirect impact of SP practices via organizational nonfinancial performance on financial performance was found to be statistically significant. This study contributes to SP practice literature by developing a conceptual model for the outcomes of SP practices and establishing statistically significant relationships between SP practices, organizational financial performance, and mediating factors. View Full-Text
Keywords: sustainable procurement practices; organizational performance; private and public organizations; multivariate analysis; Saudi Arabia sustainable procurement practices; organizational performance; private and public organizations; multivariate analysis; Saudi Arabia
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Islam, M.M.; Turki, A.; Murad, M.W.; Karim, A. Do Sustainable Procurement Practices Improve Organizational Performance? Sustainability 2017, 9, 2281.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top