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Article

Do Sustainable Procurement Practices Improve Organizational Performance?

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Department of Finance, College of Business, King Abdulaziz University, Jeddah 21589, Saudi Arabia
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Department of Economics, Faculty of Economics and Administration, King Abdulaziz University, Jeddah 21589, Saudi Arabia
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UniSA College, University of South Australia, Adelaide, SA 5001, Australia
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Science and Engineering Faculty, Queensland University of Technology, Brisbane CBD, Brisbane, QLD 4001, Australia
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Author to whom correspondence should be addressed.
Sustainability 2017, 9(12), 2281; https://doi.org/10.3390/su9122281
Received: 23 October 2017 / Revised: 28 November 2017 / Accepted: 6 December 2017 / Published: 13 December 2017
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
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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. https://doi.org/10.3390/su9122281

AMA Style

Islam MM, Turki A, Murad MW, Karim A. Do Sustainable Procurement Practices Improve Organizational Performance? Sustainability. 2017; 9(12):2281. https://doi.org/10.3390/su9122281

Chicago/Turabian Style

Islam, Md. Mazharul, Abalala Turki, Md. Wahid Murad, and Azharul Karim. 2017. "Do Sustainable Procurement Practices Improve Organizational Performance?" Sustainability 9, no. 12: 2281. https://doi.org/10.3390/su9122281

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