IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v177y2022i2d10.1007_s10551-021-04752-0.html
   My bibliography  Save this article

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

Author

Listed:
  • Daniel Etse

    (RMIT University College of Business)

  • Adela McMurray

    (RMIT University College of Business)

  • Nuttawuth Muenjohn

    (RMIT University College of Business)

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.

Suggested Citation

  • Daniel Etse & Adela McMurray & Nuttawuth Muenjohn, 2022. "The Effect of Regulation on Sustainable Procurement: Organisational Leadership and Culture as Mediators," Journal of Business Ethics, Springer, vol. 177(2), pages 305-325, May.
    • Handle: RePEc:kap:jbuset:v:177:y:2022:i:2:d:10.1007_s10551-021-04752-0
    DOI: 10.1007/s10551-021-04752-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-021-04752-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-021-04752-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael J. White & Lori M. Hunter, 2009. "Public Perception of Environmental Issues in a Developing Setting: Environmental Concern in Coastal Ghana," Social Science Quarterly, Southwestern Social Science Association, vol. 90(4), pages 960-982, December.
    2. Banovac, Eraldo & Glavić, Mevludin & Tešnjak, Sejid, 2009. "Establishing an efficient regulatory mechanism—Prerequisite for successful energy activities regulation," Energy, Elsevier, vol. 34(2), pages 178-189.
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Samar Ali, Sadia, 2015. "Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain," International Journal of Production Economics, Elsevier, vol. 160(C), pages 120-132.
    4. Florence Crespin-Mazet & Emmanuelle Dontenwill, 2012. "Sustainable procurement : Building legitimacy in the supply network," Post-Print hal-02312717, HAL.
    5. Jacobs, Rowena & Mannion, Russell & Davies, Huw T.O. & Harrison, Stephen & Konteh, Fred & Walshe, Kieran, 2013. "The relationship between organizational culture and performance in acute hospitals," Social Science & Medicine, Elsevier, vol. 76(C), pages 115-125.
    6. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    7. Zaidi, Syed Anees Haider & Mirza, Faisal Mehmood & Hou, Fujun & Ashraf, Rana Umair, 2019. "Addressing the sustainable development through sustainable procurement: What factors resist the implementation of sustainable procurement in Pakistan?," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Bernard Burnes & Rune By, 2012. "Leadership and Change: The Case for Greater Ethical Clarity," Journal of Business Ethics, Springer, vol. 108(2), pages 239-252, June.
    10. Joanne Meehan & David Bryde, 2011. "Sustainable procurement practice," Business Strategy and the Environment, Wiley Blackwell, vol. 20(2), pages 94-106, February.
    11. Constantin Blome & Antony Paulraj, 2013. "Ethical Climate and Purchasing Social Responsibility: A Benevolence Focus," Journal of Business Ethics, Springer, vol. 116(3), pages 567-585, September.
    12. Frans Melissen & Andrew Ngawenja Mzembe & Uwafiokun Idemudia & Yvonne Novakovic, 2018. "Institutional Antecedents of the Corporate Social Responsibility Narrative in the Developing World Context: Implications for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 657-676, September.
    13. Jain, Tarun & Hazra, Jishnu, 2020. "Optimal regulation and sustainable product design under uncertainties," International Journal of Production Economics, Elsevier, vol. 225(C).
    14. Gray, Wayne B. & Deily, Mary E., 1996. "Compliance and Enforcement: Air Pollution Regulation in the U.S. Steel Industry," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 96-111, July.
    15. Christine Harland & Jan Telgen & Guy Callender & Rick Grimm & Andrea Patrucco, 2019. "Implementing Government Policy in Supply Chains: An International Coproduction Study of Public Procurement," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 6-25, April.
    16. Louise Metcalf & Sue Benn, 2013. "Leadership for Sustainability: An Evolution of Leadership Ability," Journal of Business Ethics, Springer, vol. 112(3), pages 369-384, February.
    17. Fahian Anisul Huq & Mark Stevenson, 2020. "Implementing Socially Sustainable Practices in Challenging Institutional Contexts: Building Theory from Seven Developing Country Supplier Cases," Journal of Business Ethics, Springer, vol. 161(2), pages 415-442, January.
    18. De Vita, Luisa & Mari, Michela & Poggesi, Sara, 2014. "Women entrepreneurs in and from developing countries: Evidences from the literature," European Management Journal, Elsevier, vol. 32(3), pages 451-460.
    19. Thomas Johnsen & Joe Miemczyk & Mickey Howard, 2017. "A systematic literature review of sustainable purchasing and supply research: Theoretical perspectives and opportunities for IMP-based research," Post-Print hal-01290917, HAL.
    20. Jonathan Doh & Suzana Rodrigues & Ayse Saka-Helmhout & Mona Makhija, 2017. "International business responses to institutional voids," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 293-307, April.
    21. Jacob Brower & Peter A. Dacin, 2020. "An Institutional Theory Approach to the Evolution of the Corporate Social Performance – Corporate Financial Performance Relationship," Journal of Management Studies, Wiley Blackwell, vol. 57(4), pages 805-836, June.
    22. Mani, Venkatesh & Gunasekaran, Angappa & Delgado, Catarina, 2018. "Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective," International Journal of Production Economics, Elsevier, vol. 195(C), pages 259-272.
    23. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    24. Ian Worthington & Monder Ram & Harvinder Boyal & Mayank Shah, 2008. "Researching the Drivers of Socially Responsible Purchasing: A Cross-National Study of Supplier Diversity Initiatives," Journal of Business Ethics, Springer, vol. 79(3), pages 319-331, May.
    25. Emanuele Bajo & Marco Bigelli & David Hillier & Barbara Petracci, 2009. "The Determinants of Regulatory Compliance: An Analysis of Insider Trading Disclosures in Italy," Journal of Business Ethics, Springer, vol. 90(3), pages 331-343, December.
    26. Chieh-Yu Lin & Yi-Hui Ho, 2011. "Determinants of Green Practice Adoption for Logistics Companies in China," Journal of Business Ethics, Springer, vol. 98(1), pages 67-83, January.
    27. Koop, Christel & Lodge, Martin, 2017. "What is regulation? An interdisciplinary concept analysis," LSE Research Online Documents on Economics 62135, London School of Economics and Political Science, LSE Library.
    28. Frank Montabon & Patricia J. Daugherty & Haozhe Chen, 2018. "Setting Standards for Single Respondent Survey Design," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 35-41, January.
    29. Matthias Ehrgott & Felix Reimann & Lutz Kaufmann & Craig Carter, 2011. "Social Sustainability in Selecting Emerging Economy Suppliers," Journal of Business Ethics, Springer, vol. 98(1), pages 99-119, January.
    30. Walker, Helen & Brammer, Stephen, 2012. "The relationship between sustainable procurement and e-procurement in the public sector," International Journal of Production Economics, Elsevier, vol. 140(1), pages 256-268.
    31. Oguz Morali & Cory Searcy, 2013. "A Review of Sustainable Supply Chain Management Practices in Canada," Journal of Business Ethics, Springer, vol. 117(3), pages 635-658, October.
    32. Christel Koop & Martin Lodge, 2017. "What is regulation? An interdisciplinary concept analysis," Regulation & Governance, John Wiley & Sons, vol. 11(1), pages 95-108, March.
    33. Eiadat, Yousef & Kelly, Aidan & Roche, Frank & Eyadat, Hussein, 2008. "Green and competitive? An empirical test of the mediating role of environmental innovation strategy," Journal of World Business, Elsevier, vol. 43(2), pages 131-145, March.
    34. Donna Marshall & Lucy McCarthy & Marius Claudy & Paul McGrath, 2019. "Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance," Journal of Business Ethics, Springer, vol. 154(4), pages 1081-1102, February.
    35. Sadaat Ali Yawar & Stefan Seuring, 2017. "Management of Social Issues in Supply Chains: A Literature Review Exploring Social Issues, Actions and Performance Outcomes," Journal of Business Ethics, Springer, vol. 141(3), pages 621-643, March.
    36. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.
    37. Black, Julia, 2002. "Critical reflections on regulation," LSE Research Online Documents on Economics 35985, London School of Economics and Political Science, LSE Library.
    38. Ian Worthington, 2009. "Corporate Perceptions of the Business Case for Supplier Diversity: How Socially Responsible Purchasing can ‘Pay’," Journal of Business Ethics, Springer, vol. 90(1), pages 47-60, November.
    39. Solomon Aboagye, 2017. "Economic Expansion and Environmental Sustainability Nexus in Ghana," African Development Review, African Development Bank, vol. 29(2), pages 155-168, June.
    40. Brautigam, Deborah A & Knack, Stephen, 2004. "Foreign Aid, Institutions, and Governance in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 255-285, January.
    41. Glover, J.L. & Champion, D. & Daniels, K.J. & Dainty, A.J.D., 2014. "An Institutional Theory perspective on sustainable practices across the dairy supply chain," International Journal of Production Economics, Elsevier, vol. 152(C), pages 102-111.
    42. Rupert J. Baumgartner, 2009. "Organizational culture and leadership: Preconditions for the development of a sustainable corporation," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(2), pages 102-113.
    43. Christopher McCrudden, 2004. "Using public procurement to achieve social outcomes," Natural Resources Forum, Blackwell Publishing, vol. 28(4), pages 257-267, November.
    44. Julia Wolf, 2014. "The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance," Journal of Business Ethics, Springer, vol. 119(3), pages 317-328, February.
    45. Zhu, Qinghua, 2016. "Institutional pressures and support from industrial zones for motivating sustainable production among Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 402-409.
    46. Grekova, K. & Bremmers, H.J. & Trienekens, J.H. & Kemp, R.G.M. & Omta, S.W.F., 2014. "Extending environmental management beyond the firm boundaries: An empirical study of Dutch food and beverage firms," International Journal of Production Economics, Elsevier, vol. 152(C), pages 174-187.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Etse & Adela McMurray & Nuttawuth Muenjohn, 2023. "Sustainable Procurement Practice: The Effect of Procurement Officers’ Perceptions," Journal of Business Ethics, Springer, vol. 184(2), pages 525-548, May.
    2. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Etse & Adela McMurray & Nuttawuth Muenjohn, 2023. "Sustainable Procurement Practice: The Effect of Procurement Officers’ Perceptions," Journal of Business Ethics, Springer, vol. 184(2), pages 525-548, May.
    2. Else, Tim & Choudhary, Sonal & Genovese, Andrea, 2022. "Uncovering sustainability storylines from dairy supply chain discourse," Journal of Business Research, Elsevier, vol. 142(C), pages 858-874.
    3. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).
    4. Lauriane Robert & Rachel Bocquet & Elodie Gardet, 2016. "Intra-Organisational Drivers of Purchasing Social Responsibility," Post-Print hal-01613396, HAL.
    5. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Hazen, Benjamin & Giannakis, Mihalis & Roubaud, David, 2017. "Examining the effect of external pressures and organizational culture on shaping performance measurement systems (PMS) for sustainability benchmarking: Some empirical findings," International Journal of Production Economics, Elsevier, vol. 193(C), pages 63-76.
    6. Nikolas K. Kelling & Philipp C. Sauer & Stefan Gold & Stefan Seuring, 2021. "The Role of Institutional Uncertainty for Social Sustainability of Companies and Supply Chains," Journal of Business Ethics, Springer, vol. 173(4), pages 813-833, November.
    7. Athanasios Rentizelas & Ana Beatriz Lopes Sousa Jabbour & Ahmed Darwish Al Balushi & Andrea Tuni, 2020. "Social sustainability in the oil and gas industry: institutional pressure and the management of sustainable supply chains," Annals of Operations Research, Springer, vol. 290(1), pages 279-300, July.
    8. André Tchokogué & Jean Nollet & Nathalie Merminod & Gilles Paché & Véronique Goupil, 2018. "Is Supply's Actual Contribution to Sustainable Development Strategic and Operational?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 336-358, March.
    9. Mani, Venkatesh & Gunasekaran, Angappa, 2018. "Four forces of supply chain social sustainability adoption in emerging economies," International Journal of Production Economics, Elsevier, vol. 199(C), pages 150-161.
    10. Minelle E. Silva & Breno Nunes, 2022. "Institutional logic for sustainable purchasing and supply management: Concepts, illustrations, and implications for business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1138-1151, March.
    11. Davis-Sramek, Beth & Robinson, Jessica L. & Darby, Jessica L. & Thomas, Rodney W., 2020. "Exploring the differential roles of environmental and social sustainability in carrier selection decisions," International Journal of Production Economics, Elsevier, vol. 227(C).
    12. Michele M. O. Pereira & Minelle E. Silva & Linda C. Hendry, 2023. "Developing global supplier competences for supply chain sustainability: The effects of institutional pressures on certification adoption," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4244-4265, November.
    13. Chen, Lujie & Zhao, Xiande & Tang, Ou & Price, Lydia & Zhang, Shanshan & Zhu, Wenwen, 2017. "Supply chain collaboration for sustainability: A literature review and future research agenda," International Journal of Production Economics, Elsevier, vol. 194(C), pages 73-87.
    14. Liangze Ma & Rana Umair Ashraf & Muhammad Ahtisham ul Haq & Xianhua Fan, 2022. "Hurdles on the Way to Sustainable Development in the Education Sector of China," Sustainability, MDPI, vol. 15(1), pages 1-14, December.
    15. Md. Shajul Islam & Mohammad Rabiul Basher Rubel & Md. Mahedi Hasan, 2023. "Environmental and Social Performance of the Banking Industry in Bangladesh: Effect of Stakeholders’ Pressure and Green Practice Adoption," Sustainability, MDPI, vol. 15(11), pages 1-24, May.
    16. Kai-Chong Thong & Wai-Peng Wong, 2018. "Pathways for Sustainable Supply Chain Performance—Evidence from a Developing Country, Malaysia," Sustainability, MDPI, vol. 10(8), pages 1-26, August.
    17. Mariana Toussaint & Pablo Cabanelas & Alicia Blanco‐González, 2021. "Social sustainability in the food value chain: An integrative approach beyond corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 103-115, January.
    18. Shafiq, Asad & Ahmed, Muhammad Usman & Mahmoodi, Farzad, 2020. "Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study," International Journal of Production Economics, Elsevier, vol. 225(C).
    19. Shafiq, Asad & Johnson, P. Fraser & Awaysheh, Amrou, 2019. "Emerging economy sourcing: Implications of supplier social practices for firm performance," International Journal of Production Economics, Elsevier, vol. 218(C), pages 148-158.
    20. Rebeca B. Sánchez-Flores & Samantha E. Cruz-Sotelo & Sara Ojeda-Benitez & Ma. Elizabeth Ramírez-Barreto, 2020. "Sustainable Supply Chain Management—A Literature Review on Emerging Economies," Sustainability, MDPI, vol. 12(17), pages 1-27, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:177:y:2022:i:2:d:10.1007_s10551-021-04752-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.