The Effect of Regulation on Sustainable Procurement: Organisational Leadership and Culture as Mediators

Abstract

The study reported in this paper sought to examine the extent to which organisational leadership support and organisational culture explain the effect of regulation on sustainable procurement practice, as insights into this relationship is lacking in the extant literature. Useable survey data from 322 Ghanaian organisations were analysed using descriptive statistics, and structural equation modelling techniques. The analysis examined the nature of sustainable procurement practice in an African context, and the potential mediating effects of organisational leadership support and organisational culture on regulation’s relationship with sustainable procurement. The findings reveal a moderate sustainable procurement practice in Ghanaian organisations, a significantly positive effect of regulation on related practices, and a mediation effect of organisational leadership support on regulation’s relationship with sustainable procurement. There was, however, no mediation effect relative to organisational culture. Potential relevance and implications of the study for theory and practice are explored in the discussion and conclusion sections.

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Acknowledgements

We are grateful to the RMIT School of Graduate Studies for the PhD scholarship that facilitated the collection of this study’s data. Our sincere gratitude to Professor Cory Searcy the handling editor, and the three anonymous reviewers for their valuable feedback, and kind support.

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Appendices

Appendix 1: Research Instrument

Sustainable Procurement

Safety

Our organisation ensures suppliers operational sites are operated in a safe manner.

Our organisation visits suppliers’ operational site to ensure that the work environment is conducive.

Our organisation ensures inbound, internal and outbound logistics at its operational sites are done in a safe manner.

Environment

Our organisation commits its suppliers to waste reduction goals.

Our organisation evaluates whole life environmental friendliness of products before procuring.

Our organisation practices reduce, reuse and recycle.

Our organisation is committed to reduced use of packaging materials.

Our organisation participates in the design of products for disassembly.

Philanthropy

Our organisation donates to communities in which it operates.

Our organisation donates to philanthropic organisations.

Our organisation volunteers at local charities.

Diversity

Our organisation has a policy on buying from minority and women based enterprises.

Our organisation buys from minority and women based enterprises.

Human Rights

Our organisation ensures its suppliers are not using child labour.

Our organisation asks its suppliers to pay employees a living wage.

Our organisation visits suppliers’ sites to ensure sweatshop labour is not being used.

Organisational Leadership

Leadership of our organisation supports employees when they experience sustainable procurement challenges.

Leadership of our organisation rewards employees for sustainable procurement initiatives.

Leadership of our organisation provides requisite resources for sustainable procurement activities.

Leadership of our organisation organises sustainable procurement training activities.

Organisational Culture

Our organisation is people oriented.

Our organisation is committed to being a good corporate citizen.

Our organisation is supportive of people who need help.

Our organisation treats its employees in a fair manner.

Regulatory Measures

Government regulations require our organisation to practice sustainable procurement.

Standard authorities ensure our organisations comply with sustainable procurement regulations.

Our industrial associations require our organisations to practice sustainable procurement.

Appendix 2: The CFA Model

figurea

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Etse, D., McMurray, A. & Muenjohn, N. The Effect of Regulation on Sustainable Procurement: Organisational Leadership and Culture as Mediators. J Bus Ethics (2021). https://doi.org/10.1007/s10551-021-04752-0

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Keywords

  • Sustainable procurement
  • Regulation
  • Organisational leadership
  • Organisational culture
  • Mediating effect
  • Africa
  • Ghana