Role of Green Procurement in Driving Sustainable Innovation in Supplier Networks: Some Exploratory Empirical Results

Abstract

Strategic green procurement is key to success in any manufacturing business under the current Volatile, Uncertain, Complex and Ambiguous (VUCA) environment. There are tremendous pressures from government institutions, pressure groups and other institutions on every manufacturing unit aiming to divert attention of the organization toward environmental, social and economic dimensions while making any sourcing decisions. Therefore, it is imperative to proactively strategize and develop a robust supplier network capable of innovating newer products and services which is ultimately sustainable for the business. However, as previously mentioned such actions are influenced by institutional pressures, culture in the organization and green procurement strategy. The aim of this article is to develop a con-ceptual framework considering institutional pressures, organization culture, and green procurement, and further test it using primary survey data collected from South African manufacturing units. Finally, we argue that institutional pressures directly influence green procurement practices and further green procurement practices enhance sustainable innovation performance in supplier networks. The study concludes with some food for thought to the research community.