Supply chain management predictors of sustainable procurement and inclusive business in South Africa

Abstract

With the rise in volatility of local and global markets, organisations are becoming attuned to the need for creating sustainable economic value for stakeholders. Procurement channels, as a result, have become potential gateways for enabling market access and for encouraging participation by marginalised groups in the economy. For this reason, it was considered interesting to examine how inclusive business approaches, can be adopted as part of the procurement landscape as a tool for creating concerted socioeconomic and environmental value for both business and society. The purpose of this study therefore, was to investigate the potential supply chain antecedents of sustainable procurement and inclusive business in South Africa. The study was grounded in three theories, namely: stakeholder theory, institutional theory and resource-based view theory. Structural equation modelling (SEM) was adopted to quantitatively test primary data that were collected from supply chain and procurement practitioners based in South Africa using an online self-administered survey. Out of the 385 responses that were received, 249 were usable and analysed using the Statistical Package for Social Sciences (SPSS version 23) and Analysis of Moment Structures (AMOS version 23) statistical software packages. Through investigating the eight hypothesised relationships that were developed, this study theoretically positioned sustainable procurement to empirical literature that focuses on strategic partnerships, competitive advantage, familiarity with policies, trust within supply chains, organisational incentives and inclusive business. Secondly, it was observed that business models and strategies that are inclusive in nature, are able to facilitate increased access to procurement markets and resources. Managers thus, may consider establishing pilot projects and specialised programmes for promoting sustainable procurement initiatives. Lastly, the results have shown, a strong and positive relationship between organisational incentives and sustainable procurement. Policy makers and practitioners, thus, may use this study as a reference point for, adopting procurement policies and strategies that are aimed at promoting responsible and inclusive procurement practices.