Factors Affecting The Implementation of Green Procurement: Empirical Evidence From Indonesian Educational Institution
Factors Affecting The Implementation of Green Procurement: Empirical Evidence From Indonesian Educational Institution
Factors Affecting The Implementation of Green Procurement: Empirical Evidence From Indonesian Educational Institution
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guidelines and documents are a pathway towards the forefront of public awareness and has
improving and applying sustainable measures become a must-have or hygiene factor for most,
(Testa et al., 2016). if not all, organizations. In another context, the
Procurement officers of companies are Commission of the European Communities (2001)
expected to abreast themselves with the laws, states that CSR is "the voluntary integration, by
guidelines, and policies connected to contracting organizations, of social and environmental
and tendering for sustainable procurement (Lin et concerns in their commercial operations and their
al., 2015). They must also follow governmental relationships with interested parties." Companies
regulations to enhance sustainability needed by very well understand that their procurement and
governance authorities (Amann et al., 2014). supply chain activities profoundly affect their
However, the violation of procurement laws can reputation and long-time success. Conversely,
lead to heavy fines imposed by government they are often held responsible for promoting
stakeholders. In effect, to increase compliance and protecting the environment, health, and
with sustainability, procurement officers' safety rules of employees who manufacture their
awareness training may serve as a vital influence goods despite whether they are direct workers or
on sustainable green procurement work for their suppliers (Cruz & Wakolbinger,
implementation (Geldermann et al., 2007). Thus, 2008). CSR has received more comprehensive
awareness of green procurement practices can research coverage in the recent past; for instance,
transform procurement officers' mindset, which Carroll (1991) stated that CSR includes economic,
can impact the speed of sustainable legal, ethical, and humanitarian expectation tied
implementation behavior (Tsipouri, 2015), to companies by the society at a certain point in
specifically in educational institutions. time. Therefore, organizations are obliged to
improve their environmental performance to
Corporate Social Responsibility (CSR)
respond to the community's requirements.
Today, corporate social responsibility (CSR)
has not only become a popular research Approach to Green Suppliers
discipline, but it is now evident in many To effectively adopt green procurement,
companies’ corporate mission and value access to green goods and services is a significant
statements (Cruz, 2013). Regardless of its long- component in the implementation process
time presence, CSR application as a sustainability (Nadeem et al., 2017). Certification obligations
approach in supply chain management has only like ISO 9000 and ISO 140001 drive businesses to
been visible in the last five years. In effect, there adopt sustainability measures to manufacture
has been persistent pressure on companies from sustainable goods and services (Zhu et al., 2012,
stakeholders, consumers government, non- Zhu et al., 2013). This standardized environmental
governmental organizations (NGOs), and local management systems (ISO 14001) certification
communities to implement CSR across their contains regulations on product life cycle
supply chain (Ciliberti et al., 2008). assessments, environmental labeling of products,
CSR involves a variety of things such as ethics, carbon disclosure projects, and sustainability
environment, sustainability, equality, and fairness. reporting schemes (Srivastava, 2007, Büyüközkan
It is something that, in recent years, has come to and Çifçi, 2011).
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Variables Indicators
Top management support: Resource/support: tools that aid green procurement
These denote the degree to which senior implementation
management understands green procurement's Staff training: given skills on green procurement
critical role and is personally involved in its implementation and sustainability
activities.
Awareness: the knowledge that something Familiarization of green procurement policies: an
exists or understanding a situation or subject is acquaintance of green procurement processes
now based on information or experience. In Knowledge of regulation: understanding the laws
brief, it is the state of being conscious of governing procurement activities either from government
something. stakeholders or purchasing organization
CSR: involves a variety of things such as ethics, Ethics: moral conduct or behavior acceptable to society
environment, sustainability, equality, and Health and safety: denote the wellbeing of either an
fairness (Fairtrade, 2009). organization's employees or the people of a community
in which an organization operates.
Environmental sustainability:
Approach to green suppliers: this involves Certification (ISO 9000 & ISO 14000, EMS):
suppliers' integration of green strategy in their accreditation of companies with environmental
supply chain activities. management systems (EMS) certificate
Eco-design: Design of products for reduced consumption
of material/energy, design of products for reuse, recycle,
recovery of material, design of products to avoid or
minimize the use of hazardous materials
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green procurement adoption in their workplace. Moreover, the variable of the approach used as a
The support should be regular staff training and standard when applying green procurement such
facility (resources) related to green procurement as ISO certification and eco-design has the
activities. Furthermore, the dimension of highest mean value than the other variables
awareness in implementing green procurement, (4.03), which justifies that most staff understand
the average value obtained by this dimension of that those dimensions would impact significantly
3.84 indicates that the staff believes that they on the application.
should be familiar with the knowledge and
Evaluation of Measurement Model
current green procurement regulation.
This research model consists of four latent
The dimension of corporate social responsibility
variables, namely green procurement
(CSR), which has an average value of 3.97, shows
implementation, middle management support,
that the CSR dimensions are perceived in a
awareness corporate, social responsibility, and
positive mind by respondents that impact the
approach to green suppliers'. Evaluation of the
implementation of green procurement.
measurement model is a step to test the validity
Mean
Variable Dimension N Mean St. Dev Min Max
value
Green procurement Green procurement
60 3.91 0.94 2 5
implementation implementation
Middle management Resources/support 60 3.76 0.99 1 5
3.63
support Staff training 60 3.50 0.87 1 5
Familiarization with green
60 3.70 0.88 1 5
Awareness procurement policies 3.84
Knowledge of regulation 60 3.98 1.03 1 5
Ethics 60 3.90 1.00 1 5
Corporate social
Health & safety 60 4.06 3.97 0.93 2 5
responsibility (CSR)
Environmental sustainability 60 3.96 1.01 2 5
Certification (ISO 9000 &
Approach to green 60 4.00 1.28 1 5
ISO 140001 EMS) 4.03
suppliers
Eco-design product 60 4.06 0.95 2 5
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corporate social responsibility on green the adoption of green procurement. The results
procurement implementation produces T show that top management should take more
statistics of 1.542. The test results show that T responsibility for the adoption of green
statistics < T table (1.542 < 1.96). This means that procurement rather than imposing it on middle
there is no significant effect of corporate social management. The involvement of top
responsibility on green procurement management in strategic decisions such as green
implementation. The findings of this study are in procurement would affect the staff initiative
line with the results of Carter and Jennings (2004). (awareness) on their consciousness of green
They found that there is no significant procurement implementation. The relationship
relationship between individual values of between the variable of corporate social
purchasing staff on purchasing social responsibility on green procurement has
responsibility. It is likely due to the capability of indicated no significant correlation. This finding is
the organization in implementing green affected by the size of the institution. The large
procurement. Large institutions tend to have the size of the institutions would have more
capability and ability to implement green capabilities to develop procurement staff's
procurement policies to their procurement staff consciousness on the adoption of green
divisions (Michelsen and de Boer, 2009). procurement. Finally, the adoption of green
The effect of approach to green suppliers' on procurement in educational institutions would
green procurement implementation resulted in T affect other processes and stakeholders ethically
statistics of 4.960. The test results show that T to consider environmental issues in their
statistics > T table (1.96). This means that there is activities. For further study, firm size as a separate
a significant influence of approach to green variable that affects green procurement would
suppliers' on green procurement implementation. help academics and practitioners understand the
The result of this study is supported by Blome et problems in more detail and complex.
al. (2014), which indicated that there is a
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