Assessing the Sustainability Integration in Green Procurement Planning in Organization Evidence from the Financial Sector
Abstract
Purpose: This research study examines the effect of considering sustainability in the green procurement planning on the way it affects green performance and organizational sustainability success in the banking industry.
Design/Methodology/Approach: In a cross-sectional survey, 489 professionals who work in commercial, Islamic, government, and private banks were used to gather the data. Partial Least Squares Structural Equation Modeling (PLS‑SEM) was used to test the proposed conceptual framework. Findings: The findings indicate that the sustainability aspect of green procurement, which encompasses the evaluation of environmental suppliers, ethical procurement, lifecycle costing, stakeholder’s involvement, and adherence to sustainability guidelines makes a considerable influence to green performance. Also, sustainable procurement planning has a direct positive effect on organizational sustainability in economic, environmental, and social level. The consequences of green performance on organizational sustainability are also positive which serves to justify the mediating role of green performance. Research Limitations/Implications: The paper ends by giving recommendations to the practitioners and giving directions in which future research on sustainable green procurement should take. Practical Implications: The results highlight the strategic relevance of considering sustainability in the procurement planning to enhance the long-term green performance and organizational sustainability. This paper examines the reasons why sustainable procurement practices can lead to green performance and long-term organizational success focusing on the concept of sustainability as a strategic concern in contemporary green management particularly when the decisions made by procurement are likely to impact the environment, social and economic performance. Originality/Value: The research offers empirical data in the banking industry, in which the topics of sustainable procurement and green management have been expanded.
Keywords: Green Supply Chain, Sustainable Procurement, Green Management, Procurement Planning, Sustainability Integration, Sustainable Development, Banking industry.
