Effect of green procurement practices on financial performance

Abstract

The study’s predictor variable was green procurement and its relationship with financial performance and the mediating effect of green purchasing behaviour. It could be said that, green procurement is a component/dimension of sustainable procurement. It is however, recommended that, future researchers must consider investigating the effect of sustainable procurement on firm financial performance. Again, the study conceptualized financial performance as the dependent/predicted variable. However, future studies and researchers are recommended to consider the effect of sustainable procurement on green performance as a predicted variable instead of financial performance. Finally, the current study adopted the manufacturing sector as a case study. the reason was that, it is that sector which predominantly procures goods and materials for further production. Though the study found positive relationship between green procurement financial performance. However, future studies are therefore recommended to conduct a comparative analysis between the manufacturing and service sector on sustainable procurement and its effect on green performance.