Sustainable procurement in Malaysian organizations: Practices, barriers and opportunities

Do Sustainable Procurement Practices Improve Organizational Performance?

“…Studies that have identified SP practices as key tools whereby organizations could yield a higher profitability have led to increasing attention to the topic in recent years [2,19]. For example, Chan and Wong [19] found that environmentally responsible purchasing can both increase organizational net income and reduce organizational overall costs, thus improve a firm's financial performance.…”

“…A large number of studies have reported that there is a strong and positive relationship between sustainable procurement practices and company image, innovation, competitiveness, foreign direct investment, and strategic goals and targets [2,20,23,26]. For example, Surajit [23] reported that Indian manufacturing companies have achieved their strategic goals, target, and improved company image and competitiveness after implementing world-class procurement practices; while Yeow and Edler [27] stated that sustainable procurement can be best enabled by a systemic and service-oriented approach and by securing a "space" and certain flexibility to innovate.…”

“…The existing literature also reported that sustainable procurement is based on the belief that organizations can improve working environment (including health and safety), compliance, efficiency, transparency, and reduce the use of natural resources [2,26,28]. For example, Roos [26] has reported that Chile is a strong development performer, especially in terms of transparency, efficiency, and reuse of natural resources through the implementation of SP practices; and McMurray et al [2] have stated that SP engagement has facilitated improvements in organizational working environments and conditions, efficiency, and transparency.…”

“…In response to the Sustainable Development World Summit [1], sustainable procurement (SP) has become an important agenda for governments seeking to demonstrate sustainable development [2]. Studies demonstrate that sustainable procurement practices can transform markets, save money, enhance financial viability, increase the competitiveness of eco-industries, protect natural resources, and foster job creation, which will in turn contribute to sustainable development.…”

“…As a consequence, recent years have seen rapid growth globally in corporate and government organizations' interest in SP [2], ethical procurement [3], green procurement [4], lean practices [5] and e-procurement [6]. Academics and practitioners have been investigating how organizations and their suppliers affect the environment, society, and the economy [7,8].…”