Buying green in U.S. local government: Internal commitment and responsiveness to external pressures

Abstract

This study investigates how green purchasing in local governments varies as a function of the organization's internal commitment, operationalized by the stage of institutionalization of green public procurement (GPP), and external pressures from various stakeholder groups. GPP, a value‐based innovation justified on the grounds of intergenerational equity, is an important tool governments can use to mitigate the adverse effects of climate change. Survey data from 210 U.S. local governments reveal that while both external and internal factors are strong predictors of buying green, internal commitment matters relatively more. We also find that earlier stages of GPP institutionalization are more conducive to external influence, albeit the effect differs among stakeholders. Local governments tend to be more likely to buy green when nudged by nonprofits and interest groups, and less so when offered financial incentives by the federal government.

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“…In contrast to the findings of Dimand and Neshkova (2023), our study contributes a more nuanced understanding of the critical role played by internal institutionalization in the adoption of GPP within public sector organizations. Importantly, our research affirms that the internal institutionalization of GPP practices does indeed exert a positive influence on the adoption of GPP.…”

“…Subsequently, the adoption of GPP policies signifies a formal acceptance, entailing mutual understanding and sharing among organizational members. The final phase extends to the integration of GPP into the strategic management system and formal organizational structures, with GPP indicators becoming integral to performance management systems (Dimand and Neshkova 2023). Overall, empirical findings by Dimand, Neshkova (2023) affirm a positive correlation between higher internal institutionalization and an increased likelihood of engaging in green GPP practices.…”

“…The final phase extends to the integration of GPP into the strategic management system and formal organizational structures, with GPP indicators becoming integral to performance management systems (Dimand and Neshkova 2023). Overall, empirical findings by Dimand, Neshkova (2023) affirm a positive correlation between higher internal institutionalization and an increased likelihood of engaging in green GPP practices. Moreover, a higher likelihood of adopting green practices is associated with external stakeholder pressure.…”

“…Another major strand of empirical inquiry delves into the intricate dynamics between internal institutionalization and external stakeholder pressure, particularly in the context of GPP implementation within US municipal settings (Dimand and Neshkova 2023). The authors introduce the concept of "green predisposition" as the initial level of institutionalization, tied to management discretion in determining the need for a new purchase or a repurposing of existing projectsa decision akin to the conventional make-or-buy dilemma (Dimand and Neshkova 2023). Following this, the familiarization phase involves assessing the potential impact of GPP and the extent of change required by the organization (Dimand and Neshkova 2023, p. 6).…”

“…Moreover, a higher likelihood of adopting green practices is associated with external stakeholder pressure. The analysis of their interaction unveils intriguing outcomes, indicating that external pressure plays a particularly pivotal role in the initial phase of GPP institutionalization (Dimand and Neshkova 2023).…”