The Influence of Green procurement practices on organisation performance in manufacturing industry

Abstract

The study assesses green procurement practices on organizational performance in steel manufacturing sector taking a case study of Lodhia Steel Company in Arusha. Specific objectives were to examine the contribution of organizational efforts towards green Procurement practices, to find out the effect of failure to implement Green procurement in Lodhia Steel Company and to investigate the factors hindering the adoption of green procurement at Lodhia Steel Company The study adopted qualitative methods research approach and case study design. The targeted population was suppliers at Lodhia Steel Company; whereby 50 suppliers were sampled. The study used a structured questionnaire during data collection. Data were analyzed using Descriptive and a linear regression model. The study revealed that Lodhia Company has the ability in applying policy statements of green procurement as its efforts towards green procurement adoption. Also, the company gives suppliers training on matters of green procurement. The company found to provide sufficient resources for green procurement. Environment pollution and degradation and decrease compliance with environmental laws are the huge effects of failure to implement Green procurement. Also increase environmental expenses, misuse of natural resources, and decrease quality of environmentally friendly supplies were found to be the effect of failure to implement Green procurement. Moreover, the study revealed that the cost of the procedure affects the adoption of Green Procurement. Also, top management support affects the Adoption of Green Procurement. Major conclusions from the study imply that Lodhia Company has a lot of contribution to efforts towards green Procurement practices. Also, there are effects associates with failure to implement green procurement practices; these include mass production of harmful products that adversely harm the environment, human and animals’ health. It is recommended that Lodhia Company should consider green procurement as a critical investment and set aside adequate financial resources in its budgeting process. Lodhia company's top management should also support the use of green products and services.