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SUSTAINABLE PROCUREMENT BEHAVIOUR IN PUBLIC SERVICE: THE IMPACT OF GREEN ORGANISATIONAL
CULTURE AND COMMITMENT TOWARDS CHANGE
SHAHID NADEEM
DOCTOR OF PHILOSOPHY UNIVERSITY OF UTARA MALAYSIA
2017
SUSTAINABLE PROCUREMENT BEHAVIOUR IN PUBLIC SERVICE: THE IMPACT OF GREEN ORGANISATIONAL
CULTURE AND COMMITMENT TOWARDS CHANGE
SHAHID NADEEM (900745)
Thesis Submitted to Ghazali Shafie Graduate School of Government, In Fulfillment of the Requirement for the Degree of Doctor of Philosophy
Universiti Utara Malaysia
i
PERMISSION TO USE
In presenting this thesis in fulfillment of the requirement for the post graduate degree from the Universiti Utara Malaysia, I agree that the University Library may make it freely available for inspection. I further agree that the permission for copying of this thesis in any manner, in whole or in part, for scholarly purpose may be granted by my supervisor or in his absence by the Dean Ghazali Shafie Graduate School of Government. It is understood that any copy or publication or use of this thesis or part thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the Universiti Utara Malaysia for any scholarly use which may be made of any material from this thesis.
Request for permission to copy or make other use of material in this thesis, in whole or in part, should be addressed to:
Dean
Ghazali Shafie Graduate School of Government
College of Law, Government and International Studies (COLGIS) Universiti Utara Malaysia
06010 UUM Sintok Kedah Darul Aman
Malaysia
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ABSTRACT
Globally the issues related to sustainability are recognized, and efforts are made by nations to meet the challenges. To address this issue, a new global trend of Sustainable Public Procurement (SPP) has emerged lately. However, in developing economies particularly in the region of South Asia the pace of implementation of SPP is low. Lack of Sustainable Procurement Behaviour (SPB) of procurers is considered as one of the major barrier for its implementation. This study investigate the effects of Personal Values (PV), Awareness (AW), Public Service Motivation (PSM) and Leadership Style (LS) on SPB in Pakistan. Moderating influences of Green Organisation Culture (GOC) and mediating effects of Commitment towards Change (CTC) on the relationship of these variables were also examined. In this quantitative study, the data were collected from 250 managers working in the government departments of Punjab in Pakistan by using a cross sectional design. The study adopted a simple random sampling technique on randomly selected respondents (procurement managers).
Partial least Squares Structural Equation Modelling (PLS-SEM) was used to test the study hypothesis. This study found that AW and PV of managers positively influence the SPB however, LS and PSM has no influence on SPB. Furthermore PV and AW influence the level of CTC but LS has no influence on CTC. Moreover, GOC has significant moderating influence between CTC and SPB. The research findings filled the void of knowledge in the field of SPB in public sector in Pakistan. The results of this study offers important insights to policymakers, procurement managers and researchers to further understand and improve the SPB of the managers in Pakistan.
Keywords: Sustainable Public Procurement, Sustainable Procurement Behaviour, Public Service Motivation, Commitment towards Change, Pakistan.
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ABSTRAK
Isu-isu berkaitan kelestarian telah diiktiraf secara global, dengan pelbagai usaha untuk menangani isu tersebut telah dibuat. Dalam menangani isu-isu ini, Kelestarian Perolehan Awam (Sustainable Public Procurement) (SPP) muncul sebagai satu trend global dalam beberapa tahun kebelakangan ini. Walau bagaimanapun, kadar pelaksanaan SPP di negara-negara membangun, khususnya di rantau Asia Selatan, adalah rendah. Antara halangan utama pelaksanaannya adalah kerana kekurangan Kelestarian Tingkah Laku Perolehan (Sustainable Procurement Behaviour) (SPB) dari pemeroleh. Kajian menyiasat kesan Nilai Peribadi (PV), Kesedaran (AW), Motivasi Perkhidmatan Awam (PSM) dan Gaya Kepimpinan (LS) terhadap SPB di Pakistan.
Pengaruh-pengaruh pengantaraan Budaya Organisasi Hijau (Green Organization Culture) (GOC) dan kesan-kesan pengantara Komitmen ke arah Perubahan (CTC) terhadap hubungan pembolehubah ini juga dikaji. Dalam kajian kuantitatif ini, data yang dikumpulkan diperolehi daripada 250 orang pengurus yang bekerja di pelbagai jabatan kerajaan di Punjab, Pakistan dengan menggunakan rekabentuk keratan rentas.
Kajian ini mengguna pakai teknik persampelan rawak mudah dan responden dipilih secara rawak seperti pengurus perolehan. Pemodelan Persamaan Kuasa Dua Terkecil Separa Berstruktur (Partial Least Squares Structural Equation Modelling) (PLS- SEM) digunakan untuk menguji hipotesis kajian. Hasil kajian ini mendapati AW dan PV bagi pengurus mempengaruhi SPB secara positif, namun LS dan PSM tidak mempunyai pengaruh ke atas SPB. Selain itu, kecuali LS, PV dan AW didapati mempengaruhi tahap CTC. GOC pula mempunyai pengaruh pengantaraan secara signifikan di antara CTC dan SPB. Dapatan kajian mengisi jurang di dalam penyelidikan bidang SPB dalam sektor awam di Pakistan. Hasil kajian ini juga menawarkan pandangan-pandangan penting kepada pembuat dasar, pengurus perolehan dan penyelidik untuk lebih memahami dan meningkatkan SPB bagi pengurus di negara Pakistan.
Kata kunci: Kelestarian Perolehan Awam, Kelestarian Tingkah Laku Perolehan, Motivasi Perkhidmatan Awam, Komitmen terhadap Perubahan, Pakistan.
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ACKNOWLEDGEMENT
The most excellent words of praises are due to Allah (SWT) for enabling me to complete this intriguing journey. I would like to pay my profound gratitude and appreciation to my supervisor Prof. Dr. Mohamad Hanapi Mohamad for his support, encouragement, patience and guidance throughout this study. It was a great pleasure working under his supervision because his criticisms have been very challenging and have served as a source of inspiration throughout the period of this study. It was a great privilege to work under his supervision, his intellectual contributions to my research are immeasurable.
I am also immensely indebted to Prof. Madya Dr. Nik Ab. Halim bin Nik Abdullah for his continuous guidance and help during my study. Special thanks and appreciation to Dr. Sabariah binti Yaakub and Dr. Muhammad Subhan for their valuable insights, comments and suggestions those have contributed greatly in enriching my study.
I wish to express my deepest appreciation to my mother for providing me her unfailing support, unconditional care, prayers and encouragement throughout this journey. I am also taking this opportunity to express my gratitude to my wife who supported and encouraged me throughout the course of this project. Many thanks to my siblings, brothers, sisters and sister-in-law for their encouragement and support.
A special and hearty thanks to Hashim and Aleezey for energizing me and cheering me up in my most challenging times. Thank you all for providing me with overwhelming patience, encouragement and inspiration that has greatly facilitated the completion of this challenging work.
Alhamdulillah Rabil Alamin
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TABLE OF CONTENT
PERMISSION TO USE ... i
ABSTRACT ... ii
ABSTRAK ... iii
ACKNOWLEDGEMENT ... iv
TABLE OF CONTENT ... v
LIST OF TABLE ... x
LIST OF FIGURES ... xi
LIST OF ABBREVIATIONS ... xii
CHAPTER ONE: INTRODUCTION ... 1
1.0 Introduction ... 1
1.1 Background Of The Study ... 1
1.2 Brief History Of Pakistan ... 10
1.2.1 Budget Of Pakistan... 11
1.2.2 Gdp Of Pakistan ... 12
1.2.3 Public Procurement In Pakistan ... 12
1.3 Problem Statement ... 14
1.4 Research Questions ... 23
1.5 Objectives Of The Study ... 23
1.6 Significance Of The Research ... 24
1.7 Scope Of Study ... 27
1.8 Definitions Of Key Terms ... 28
1.8.1 Sustainable Procurement Behavior ... 28
1.8.2 Commitment Towards Change... 29
1.8.3 Personal Values ... 29
1.8.4 Public Service Motivation (Psm) ... 29
1.8.5 Leadership Style ... 30
1.8.6 Awareness ... 30
1.8.7 Organizational Green Culture ... 30
1.9 Chapterisation And Structure Of Thesis ... 31
1.10 Summary ... 31
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CHAPTER TWO: LITERATURE REVIEW ... 33
2.0 Introduction ... 33
2.2 Procurement ... 35
2.2.1 Public Procurement ... 35
2.2.2 Importance of Public Procurement ... 36
2.2.3 Issues in Public Procurement ... 36
2.3 Principles of Procurement ... 37
2.3.1 Value for Money (VFM) ... 37
2.3.2 Ethics ... 38
2.3.3 Competition ... 38
2.3.4 Transparency ... 39
2.3.5 Accountability ... 39
2.4 Public Procurement policy ... 40
2.5 Sustainability ... 42
2.5.1 Definitions of sustainability ... 43
2.5.2 Emergence and evolution of the concept of sustainability ... 43
2.5.3 Innovation and Sustainability ... 44
2.5.4 Triple Bottom Line and Sustainability ... 45
2.5.5 Sustainable Behavior ... 49
2.5.6 Sustainable Procurement defined ... 50
2.5.7 Sustainability in Asia ... 52
2.5.8 Sustainable procurement Implementation Approaches ... 53
2.5.9 Conceptualization of Sustainability in Public Procurement ... 55
2.5.10 Overview of SPP Implementation Activities ... 57
2.5.11 Benefits of sustainable public procurement for the environment ... 58
2.5.12 Drivers and Barriers in implementation of sustainability ... 59
2.6 Public Procurement And Sustainability Landscape InPakistan ... 60
2.7 Environment of Public Procurement System ... 61
2.8 Political Environment ... 62
2.9 Environmental Forces- Economic and Social ... 62
2.10 Public Procurement Process and Supplier Selection ... 63
2.11 Green Procurement in Pakistan and Environmental Protection Concerns ... 63
2.12 Role of Public Procurement Regulatory Authority (PPRA) in Pakistan ... 64
2.13 Variables ... 66
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2.13.1 Sustainable Procurement Behavior ... 66
2.13.2 Personal Values ... 70
2.13.3 Awareness ... 72
2.13.4 Public Service Motivation ... 77
2.13.5 Leadership style... 79
2.13.6 Commitment towards Change ... 84
2.13.7 Commitment towards change and Sustainable behavior... 88
2.13.8 Green Organizational Culture- (Moderating variable) ... 90
2.14 Theoretical Framework ... 97
2.14.1 Research Focus in previous studies about theories ... 98
2.14.2 Value-belief- norm theory ... 99
2.14.3 Theory of Planned Behavior (TPB) ... 103
2.14.4 Public Service Motivation Theory (PSM) ... 107
2.15 Research Framework ... 108
2.16 Summary ... 109
CHAPTER THREE: RESEARCH METHODOLOGY ... 110
3.0 Introduction ... 110
3.1 Research Paradigm ... 110
3.2 Research approaches ... 112
3.2.1 Inductive approach ... 112
3.2.2 Deductive approach ... 112
3.3 Research Design ... 114
3.3.1 Qualitative Research ... 114
3.3.2 Quantitative Research ... 114
3.3.3 Research Strategy ... 115
3.3.4 Methods of Data Collection ... 117
3.3.5 Population... 118
3.3.6 Unit of Analysis ... 119
3.3.7 Survey Procedure ... 119
3.3.8 Survey Instrument and Data collection ... 120
3.3.9 Statistical Methods ... 122
3.4 Sampling Technique ... 123
3.5 Quality criteria ... 124
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3.5.1 Reliability ... 124
3.5.2 Validity ... 126
3.6 Ethical considerations ... 126
3.7 Research instruments ... 127
3.7.1 Sustainable procurement behavior ... 128
3.7.2 Commitment towards change ... 129
3.7.3 Personal values ... 130
3.7.4 Awareness ... 130
3.7.5 Public service motivation ... 131
3.7.6 Leadership Style ... 132
3.7.7 Green Organizational Culture ... 133
3.7.8 Measurement of Variables/Instrumentation ... 133
3.8 Summary ... 134
CHAPTER FOUR: ANALYSIS AND FINDINGS ... 136
4.1 Introduction ... 136
4.2 Response Rate ... 136
4.3 Non-response Bias Test ... 138
4.4 Common Method Bias Test ... 142
4.5 Initial data examination, Screening and Preparation of Data ... 143
4.5.1 Missing Data ... 143
4.5.2 Multicollinearity ... 144
4.6 Descriptive analysis ... 145
4.7 Profiles of the Respondents ... 147
4.8 Evaluation of PLS-SEM Results ... 148
4.9 Approach of Partial Least Square (PLS) Structural Equation Modeling (SEM) ... 149
4.9.1 The Measurement Model ... 152
4.9.2 The Structural Model ... 161
4.10 Chapter Summary ... 177
CHAPTER FIVE: DISCUSSION AND CONCLUSIONS ... 178
5.1 Introduction ... 178
5.2 Recapitulation of Findings of the Study ... 178
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5.3 Discussion on findings ... 180
5.3.1 Direct Relationships ... 180
5.4 Contributions of the study ... 232
5.4.1 Managerial contributions... 232
5.4.2 Theoretical contributions... 237
5.4.3 Methodological contributions ... 241
5.5 Limitations and Suggestion for Future Research ... 241
5.6 Conclusion ... 244
REFERENCES ... 247
APPENDICES ... 312
APPENDIX A ... 312
APPENDIX B: Request for Survey ... 313
APPENDIX C ... 314
APPENDIX D ... 319
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LIST OF TABLE
Table 1.1 Annual Financial Budgets of Pakistan 11
Table 1.2 Public Procurement of Pakistan 13
Table 2.1 Past Studies of Sustainability 48
Table 3.1 Main Differences among deductive and inductive approaches 114
Table 3.2 Research strategies, questions and situations 117
Table 4.1 Response Rate of Questionnaires 138
Table 4.2 Descriptive Statistics of early and late respondents groups 139
Table 4.3 Independent Sample Test 140
Table 4.4 Multicollinearity Test based on Tolerance and VIF 145
Table 4.5 Descriptive statistics of variables of study 146
Table 4.6 Respondent’s profile 148
Table 4.7 Loading, Reliability and Convergent Validity Values 155
Table 4.8 Discriminant Validity 158
Table 4.9 Loading of items on factor analysis 159
Table 4.10 Results of Hypotheses Testing (Direct Relationships) 164
Table 4.11 Results of Mediation Test 170
Table 4.12 Results of Moderation Test 172
Table 4.13 Coefficient of Determination (R2 ) 173
Table 4.14 Effect Size (f2) 174
Table 4.15 Assessment of Predictive Relevance (Q2) 175
Table 4.16 Study findings Recapitalised 176
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LIST OF FIGURES
Figure 1.1 : Map of Pakistan 10
Figure 1.2 : GDP of Pakistan 12
Figure 2.1 : Flow Chart 34
Figure 2.2 : Themes of objectives and impact of public procurement 41
Figure 2.3 : Triple Bottom Line 46
Figure 2.4 : 3BL dimensions articles published 48
Figure 2.5 : Procurement cycle 58
Figure 2.6 : Check and balance in Public Procurement System 61
Figure 2.7 : Influences of Public Procurement System 61
Figure 2.8 : Relationship of iron trainable in Public Procurement 62
Figure 2.9 : Policies, Targets and Tools within SPP 65
Figure 2.10 : Schematic of VBN theory 100
Figure 2.11 : Theory of Planned Behaviour 104
Figure 2.12 : Schwartz theory of values 109
Figure 2.13 : Conceptual Framework 109
Figure 3.1 : Deductive & Inductive Approach 114
Figure 4.1 : Measurement Model (PLS-SEM Algorithm 161
Figure 4.2 : Structural Model (PLS-SEM Bootstrapping 163
Figure 4.3 : Mediation 169
Figure 4.4 : PLS-SEM Algorithm Interaction 171
Figure 4.5 : Moderation Graph 172
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LIST OF ABBREVIATIONS
CPL Central Procurement Laws CSR Corporate Social Responsibility
CTC Commitment to Change
DGB Directorate General Budget DGP Directorate General Procurement EPO Environmental Protection Organization EPP Environmental Protection of Pakistan FATA Federally Administrative Tribal Area FCO Frontier control organization
FWO Frontier Works Organization GDP Gross Domestic Product GFR General Financial Rules GOP Government of Pakistan Govt Government
GPP Green Public Procurement
LCC Life Cycle Cost
MEAT Most Economically Advantageous Tender NAB National Accountability Bureau
NAPP National Association of patients participation NCC National Construction Company
NHA National Highway Authority
NIAP National Impact Assessment Program NLC National Logistics Cell
OECD Organization for Economic Co-operation and Development
OGDC Oil and Gas Development Corporation PCB Punjab Control Board
PEB Pro- environmental behavior PEL Pakistan Environmental Laws PIA
PLS
Public International Airline Partial Least Square
PPA Pakistan Public Administration PPC Public Procurement Cell PPC Pakistan Penal Code
PPR Public Procurement Records
PPRA Pakistan Procurement Regulatory Authority PSM Public Service Motivation
PTA Pakistan Telecom Authority PWR Pakistan Western Railways
SAARC South Asian Association of Regional Cooperation SEA
SEM
Strategic Environmental Assessment Structural Equation Modeling
SGP Sustainable Government Procurement
SMED Small Medium Enterprises Development Authority SPP Sustainable Public Procurement
TPB Theory of Planned Behavior TRA Theory of Reasoned Behavior
UNDP United Nations Development Programs
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UNEP United Nations Environmental Protection UNO United Nations Organization
VBN Theory Value-Belief-Norm theory WHO World Health Organization WTO World Trade Organization
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CHAPTER ONE INTRODUCTION
1.0 Introduction
This chapter provides a preamble to the research study and also provides a brief overview of the contents of the study. It contains background of the study, problem statement, research questions, research objectives, scope of the study and the significance of the study. It also has key definitions and finally the chapterisation and organization of the study is captioned in this chapter.
1.1 Background Of The Study
The concept of sustainability has emerged as a prime challenge since last two decades driven by the social, economic and environmental issues (Sancha, 2016).In today’s competitive world, awareness of environmental protection is rapidly increasing worldwide and being actively discussed, with the tendency of protecting the environment and conserving the resources of earth overwhelming (UNEP-2016).With the decline of overall global environmental quality, a proactive approach to environmental and resource issues to halt this decline is needed in order to help safeguard the environment (Yaakub, Subhan, Abdullah & Gapar, 2015).
Moreover, sustainability in relation to environment has gain tremendous popularity since the Rio de Janeiro Earth summit in 1992, Paris conference of United Nations Climate Change in 2015 and later signing of the famous Paris agreement in New
2 York in 2016.
The market of public procurement is considered as the one of the major business sector in the world (Hawkins & Powley, 2011). Public procurement is an important aspect of international trade and it accounts for on average country 10 to 20 percent of county’s GDP (WTO-2016), while the estimates in developing countries are even higher and they ranges from 30 to 60 percent (Perera, 2012). To encourage the procurement of environmentally sound services and goods, public procurement policies can be formulated to promote the trend of sustainable procurement.
Incorporating environmental considerations and social considerations into procurement practices can contribute to sustainable development (UNEP, 2015).
Applying sustainable procurement preferences in order to promote environmental initiatives is being encouraged by the authorities in many countries, as well as by researchers (Antonioli & Mazzanti, 2016). By integrating environmental preferences in the purchase of products, works and services, both public and private organizations can improve their environmental performance and at the same time influence their suppliers to improve the environmental performance of their products and production processes. For public organizations, sustainable procurement can function as a market- like incentive to enhance the green initiatives in the private sector. For private organizations, it has been suggested that sustainable procurement initiatives can result in reduced risks and costs (Ageron & Spalanzani, 2012).
Sustainable public procurement is defined by Walker and Brammer (2012) as “it is pursuit for objectives of sustainable development by the process of supply and
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purchasing, incorporating environment, economic and social aspects”. Substantial Public procurement is carried out worldwide therefore it can influence the supplier and manufacturers to provide socially responsible and environmentally friendly services and products on a big scale (Lember et al., 2011). Since governments are considered as the key purchaser therefore in both developing and developed countries they consume a large percentage of public exchequer (UNEP, 2016).
Developed countries are pursuing economic, social and environmental objectives by adapting sustainable practices such as protecting environment, raising standards of labor, and reduction of unemployment (Sancha et al., 2016). In 2012, Walker et al., pointed out that the government’s interest in meeting the sustainability goals required the reevaluation of their approaches to purchase in public sector as to encourage all stakeholders to procure sustainable services and goods. Geng and Doberstein (2008) also highlighted that considering the depleting earth resources and environmental apprehensions, there is urgent need to implement effective sustainable public procurement practices in all countries, more importantly in developing countries.
Mayur (1979) argued that the developing economies are in rush to adapt new technologies to improve their economic conditions but due to inappropriate planning, inappropriate technology selection and lack of lawful protection these countries are polluting the environment.
South Asian countries are very vulnerable to climate change. Impacts of climate change have been observed in the form of glacier retreat in the Himalayan region, where the approximately 15,000 glaciers will likely shrink from the present total area of 500,000 km2 to 100,000 km2 by 2035. These glaciers form a unique reservoir which
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supports perennial rivers such as the Indus, Ganges and Brahmaputra which in turn are the lifeline of millions of people in south Asian countries (Bangladesh, Bhutan, India, Nepal & Pakistan). In the region of South Asia, environmental sustainability challenges such as water scarcity, climate change and energy crisis are shaping public procurement patterns which can possibly cause environmental damages in south Asia.
In this region, the public procurement practices are generally inherited from British legacy. In practice this region faces various problems such as non-transparency, lack of accountability and non-environmental public procurement practices (Hassan, Afridi
& Khan, 2017). Nepal, Pakistan, India, Bangladesh, Sri Lanka, Maldives and Bhutan are the members of a regional organization of South Asian Association of Regional Cooperation (SAARC). This organization is making various endeavors to improve public procurement practices and implement sustainable public procurement practices in south Asia, but the pace of implementation is slow (PPRA, 2015). The level and type of sustainable public procurement differ greatly among organization and regions (Brammer & Walker, 2011) likewise in south Asia level of sustainablity implementation and nature differs among the countries. Bangladesh and Sri Lanka are comparatively making progress but the implementation of sustainable public procurement is low in Pakistan, Bhutan and Nepal.
In Pakistan, despite having general legislations and policies by the government, the pace of implementation process is deplorable due to individual and organizational level issues in public departments (Akhtar & Sulheri, 2015). With regards to the evolution of public procurement, in 2400 and 2800 BC the first known purchase was made in Syria and the purchase order was written on a tablet of red clay. This purchase
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order was of fifty jars of smooth fragrant oil in lieu of grains of six hundred small weights. Another view of earliest purchase order is of, in 800 BC of silk trade among Greek colony and China and in 300 BC and these contracts were linked with support of Roman army in Spain (Thai, 2001).
Public procurement can be used by the government to achieve socio-economic objective and usually referred to as non-commercial secondary function of public procurement. These secondary functions may include promotion of agendas or national polices, promotion of socio-economic goals, environmental protection, sustainable development and the achievement of national and international policies or agendas (Smith, 2005). To provide better services, prices, works and goods for a nation a transparent and sustainable public procurement system may be implemented, and the economy of a country can be improved by having effective sustainable public procurement (World Bank, 2013).
On a similar note, Purkus and Gawel (2017) highlighted that procurement is an important instrument in achieving socio-political objectives. Governments in various countries are increasingly making use of their authority of being larger buyer in the market place to force the organizations in private sector to contribute towards achievement of government goals. Gunther and Scheibe (2006) views that the procurement process is a special process of decision making in which procurement manager’s working in procurement projects decide that full potential of sustainable procurement is utilized or not .
Although leaders in corporate world have increasingly acknowledged their role for contributing towards sustainability (Lozano, 2015) in public organizations, procurers
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have developed risk averse behavior and has less exposure to be involved in projects with risks such as procurement of sustainable products and services due to their previous polices/rules of public procurement (Rolfstam, 2012).
Therefore, it is believed that there is a need of change in the existing procurement behavior of the procurers to attain higher level of sustainable public procurement.
Hence, it is pertinent to explore as to why some procurement managers shows more sustainable behavior than others and what factors influences there sustainable procurement behavior (Testa et al., 2015).
It has been seen in the literature that majority of studies focused on highlighting the content irrespective of rapid increase of research on sustainable procurement (Melissen et al., 2013; Zhu et al., 2013) or about the barriers opposing sustainable public procurement (Giunipero et al., 2012; Brammer & Walker, 2011). However the influence on adaptation in sustainable public procurement are not often tested with only few authors who have currently studied these relationships (Zhu et al., 2013;
Testa et al., 2012). Most of the earlier studies focused on national or organizational level and not on individual level. Besides that procurement behavior’s role in implementation was rarely considered.
Sustainable development refers to the balance between economic, social, and environmental sustainability (Elkington, 2004; Golja,Krstinic & Nizic, 2010; Udo &
Pawłowski, 2011). However, in theoretical and empirical investigations of sustainability, main focus has been on one or two areas. Studies focusing on one area mostly consider the environmental aspects (Schultz & Zelezny, 1999; Dietz et al., 2005). Studies on both environmental and economic aspects of sustainability have
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been conducted in business and public sectors (Golusin et al., 2012; Munda, 1997;
Prior, 1998). Moreover, some studies carried out on social and economic aspects of sustainability (Tuziak, 2010; Dempsey et al., 2011) or all three areas of sustainability (Udo & Pawłowski, 2011; Ralston & Brock, 2011).
Literature reviewed showed that a large number of sustainability studies, in which the study topic was sustainability yet the ultimate focus was on the environment, society or economy (Alhaddi, 2015; Bibri, 2008; Blengini & Shields, 2010; Iles, 2008;
McDonald & Oates, 2006). Likewise, in this study in order to be more focused, only one dimension of sustainability that is environmental have been studied and other two dimensions (economic and social) are not part of this study. Green public procurement behavior, Pro-environmental public procurement behavior and sustainable procurement behavior have been often used interchangeably in literature (Flint &
Golicic 2009; Carter & Easton 2011; Ralston & Brock, 2011). Therefore, throughout this study, they are referred to as Green or sustainable procurement or pro- environmental procurement (Giovanni 2012; winter & Knemeyer 2013; Wu & Pagell 2011).
Progressively more organizations have started to adopt sustainability but there is less convergence in literature about the process by which government organization can embrace sustainabilty. There are researchers who suggest that organizations needs to have paradigm shift in there thinking and behavior in order to adopt sustainable practices (Borland, 2009; Linnenluecke & Griffiths, 2010).
On the other hand, some researchers contended that only modest behavioral changes with incremental adjustments in procedures, rewards systems and processes would be
8
sufficient to implement the sustainability (Dunphy et al., 2007; Epstein & Buhovac, 2015; Harris and Crane, 2002). The prior literature, thus offers diverse and often inconsistent views how sustainability initiatives progresses in the organizations.
In the case of Pakistan, major challenges of implementation of green programs needed to be borne by ministries and there autonomous bodies which undertake various budgeting and managerial roles. In these ministries, accomplishment of sustainability initiative depends on procurers willing engagement in sustainable behaviors. Many practitioners and scholars have recognized the assessment and modification of behavior in achieving sustainable objectives but in the extant literature they have not been adequately investigated in empirical or theoretical models (Akhtar & Sulheri, 2015; Ahmad & Bukhari, 2015; Konuk & Jari Salo, 2015).In implementation stage human involvement is critical as the behavioral changes are required to change old practices of procurement (Shen, Zhang & Zhang, 2016). Behavioral modifications are considered least expensive and quickest way to implement sustainable practices (Schneider, 2013).
Sustainable procurement behavior of public procurement managers is important to study because of various reasons. Firstly, they have immense power/involvement in decision making and implementation of sustainable practices in government departments. Secondly as public procurement officers undertaking their duties must be in conformance with the aim of guarding and protecting the nation’s resources.
Third, primary motivation of public officers is “Patriotism”, being regarded as their moral duty to do best for society and environment (Perry, 2010; Hart, 1985). Most of the existing studies have paid more attention in investigation of barriers, drivers and
9
environmental management systems less studies have covered the influence of personal behavior and beliefs (Testa et al, 2015; Lember et al, 2015; Graves & Sarkis, 2010; Miemczyk, Johnsen, & Macquet, 2012). In prior literature on sustainable behavior, the number of quantitative studies are very limited and have not been rigorously examined and additionally, they offer inconclusive findings.
Moreover, no study has been found examining or testing the relationship between variables (personal values, leadership style, and awareness and public service motivation) and sustainable behavior with mediation effect of commitment to change and moderating impact of green organizational culture in the context of sustainable public procurement.
Given the pivotal role of sustainable procurement behavior in implementation of sustainable procurement (Testa et al, 2015; Lember et al, 2015; Graves and Sarkis, 2010; Miemczyk, Johnsen, & Macquet, 2012; Schneider, 2013) studies on the relationship of above mentioned relationships are needed to devise more efficient an effective sustainable procurement management practices and develop a better theoretical understanding about the sustainable procurement behaviour. In domain of sustainability, importance of studying behavioral aspects is now well recognized.
This research have made an endeavor to fill these gaps and analyze the mediating role of commitment towards change (CTC) and the moderating role of green organizational culture (GOC) on the sustainable procurement behavior (SPB) and the influence of personal values(PV), awareness(AW), public service motivation (PSM) and leadership style(LS) on the procurement behavior of government procurers working in the
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province of Punjab (Pakistan) and its effect on the implementation of sustainable public procurement.
1.2 Brief History of Pakistan
After division of former British colony India, on 14th August 1947, Islamic republic of Pakistan emerged as an independent country in south Asia. West and East Pakistan were made from this division.
It has population more than 207 million people which makes it sixth most populated country in the world and it is the 36th largest country in world in terms of area it covers.
Map of Pakistan is shown in figure 1.1:
Figure 1.1 Map of Pakistan Source Survey of Pakistan (2015)
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Its Coastline spread over 1046 miles along the Gulf of Oman and Arabian Sea in south.
In west, Pakistan is bordered by the Afghanistan, in east it has India, China in the north-east and Iran is in southwest. Pakistan has five provinces namely, Sind, Punjab, Baluchistan, the Khyber-Pakhtunkhwa and Gilgit-Baltistan. Federally Administered Northern Areas, Federally Administered Tribal Areas and Pakistan-administered part of Kashmir which is called Azad Jammu and Kashmir (GOP, 2011).
1.2.1 Budget of Pakistan
The ministry of finance at Islamabad prepares the annual budget of Pakistan, financial year in Pakistan begins from month of July and ends by 30th of June. The budgets of last sixteen financial years are given below:
Table 1.1
Annual Financial Budgets of Pakistan
Serial Financial Year National Budget (Rs in Billion)
1 2000/01 700
2 2001/02 751
3 2002/03 742
4 2003/04 828
5 2004/05 903
6 2005/06 1099
7 2006/07 1315
8 2007/08 1874
9 2008/09 2009
10 2009/10 2403
11 2011/12 2764
12 2012/13 2967
13 2013/14 3256
14 2014/15 3691
15 2015/16 3802 Source Ministry of Finance Pakistan (2016)
12 1.2.2 GDP of Pakistan
In 2015, Gross Domestic product (GDP) of Pakistan was US $ 270.96 billion. In world economy GDP value of represented by Pakistan is .039 percent. From 1960 till 2015 GDP in Pakistan was on average US $59.54 billion. Lowest recorded GDP was 3.71 in 1960 and all time highest was US $ 270.96 billion in 2015.
Figure 1.2 GDP of Pakistan Source: World Bank Report (2015)
1.2.3 Public procurement in Pakistan
The Public Procurement Regulatory Authority regulates public procurement in Pakistan, major ordinance and rules are ordinance 2002 and public procurement Rules 2004. Initially the purchasing of services, works and goods in Pakistan was governed by General financial Rules (GFR) till 1951, they were updated in year of 1977 (GOP 2011). It is considered that GFR have not been able to ensure accountability, value for money and transparency in procurement processes in Pakistan.
137.26 152.39 170.08 168.15 177.41
213.76 224.65 231.08 243.63 270.96
0 50 100 150 200 250 300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Amount in Billion Dollars
GDP
GDP of Pakistan
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The statistics about all the public procurement by public organizations are not completely available at any level as the Defense forces, National Highway Authority (NHA), Oil and Gas Development Corporation (OGDC) are not providing procurement data to Accountant General of Pakistan. Available Annual public procurement statistics in Pakistan are given below:
Table 1.2
Public Procurement of Pakistan
Serial Financial Year Public procurement(Rupees in Billion)
1 2005 141
2 2006 157
3 2007 192
4 2008 236
5 2009 289
6 2010 320
7 2012 350
8 2013 370
9 2014 435
10 2015 513
Source Accountant General of Pakistan, PPRA and Statistics Division of Pakistan (2015)
In Pakistan, federal government procures services, works and goods through three entities it includes ministries in federal government, autonomous bodies (companies’
ordinance 1984) attached to divisions and statutory bodies. In provinces the entities are same for the public procurement management. To enhance effectiveness and efficiency Government of Pakistan (GOP) in 2002, promulgated PPRA ordinance of 2002 (a). According to this ordinance the Public Procurement Regulatory Authority (PPRA) became the regulator of the public procurement. Ordinance of 2002 also empowered PPRA to implement and make supporting rules to ensure efficiency in
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procurement management. PPRA has all the powers required to execute its function however it has no punitive powers (PPRA, 2015).
The framework for evaluating and monitoring of public procurement also provided by the PPRA which include methods of procurement, publication of tenders, planning of public procurement, bids rejection and evaluation procedure, acceptance and awarding of bids, procedure of settlement of disputes, qualification and disqualification parameters of contractors etc. In Pakistan public procurement is decentralized.
Ministries and their divisions are independent to procure goods, services, and works.
The power of procurement is delegated by the ministry of finance. Moreover autonomous bodies of the divisions are independent to make their purchases according to their requirements similarly statutory bodies are also has the same power for their procurement function. However rule and regulations for procurement made by PPRA needs to be adhered by all the procurement entities (USAID, 2013).
The government of Pakistan has been an active stakeholder to address the environmental issues and has introduced different initiatives mostly in energy management and waste reduction programs. Government has also made policies and laws for sustainable procurement (Khan, 2013). In line with government policies PPRA has promulgated rules and regulations for green procurement of certain products and services.
1.3 Problem Statement
One of the greatest challenge and a serious global issue is climate change being faced by the human kind (Barker, 2017). The world history reveals a pattern of gradual
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development in human life. Nevertheless, current industrial growth and lack of sustainable practices are increasingly jeopardizing the natural environment, resources and on the whole future sustainability of the Earth. Humanity is being called to make significant behavioral and systemic changes in order to prevent potential large-scale catastrophe this century. Some are even challenging us to mobilize to “save civilization” (Hein & Jenkins, 2017).
In twenty-first century heightened interest has been shown around the globe in environmental problems irrespective of the relevant fields be it corporate or public.
International treaties such as Kyoto Protocol 1997, Copenhagen Agreement 2009 and Paris agreement 2015 have risen interest globally to combat the environmental issues (Formentini & Taticchi, 2015).
To provide the necessities for the economic, environmental and social sustainability is a complex task for the governments since multiple constraints are presented by the behavioral responses, socio-cultural environment and economic-financial legislations (Blasi &Vigano, 2017).
The public procurement contributes to 10 to 20 per cent of the gross domestic product (GDP) of an economy on average country (WTO, 2016). While the estimates in developing countries are even higher and they ranges from 30 to 60 percent (Perera, 2012). Therefore it can play a pivotal role in addressing the environmental sustainability issues. In this regard, sustainable procurement of products and service is one of the strategies to reduce the environmental impacts.
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Public procurement practices worldwide have numerous issues such as corruption, non-transparency, lack of accountability and non-adherence to sustainable practices.
South Asia has also similar problems in public procurement but the level of bad management and lack of accountability is much higher than the developed or western countries (Noor, 2014).
In global context, implementation of sustainable procurement practices has been progressed well in developed countries, however in developing economies the pace is comparatively very slow (Melissen & Reinders, 2012).
Sustainable procurement practices in public sector in many developed countries are already giving fruitful results (Testa et al, 2015) but the implementation of sustainable public procurement practices is low in south Asia. Sri Lanka and Bangladesh are making some progress followed by India but pace of implementation is poor in Nepal, Bangladesh, Bhutan and Pakistan (UNEP, 2013).
Over the period of time due to the absence of a comprehensive sustainable development scheme in Pakistan, severe environmental issues have occurred such as water resource depletion, soil erosion, desertification, air and water pollution, land degradation, forest depletion, vanishing bio diversity and solid waste pollution, resulting in climate change and ecological imbalance (SMEDA, 2013). In accordance with the practice of ‘‘pollute now, clean up later’’, many environmental disasters have arisen, encumbering further development efforts from the government (Weiss, Anita, Mughal, & Zeb, 2012). According to Environmental Vulnerability Index (EVI) of United Nations Environmental Program (UNEP) of 2015 and South Pacific Applied
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Geoscience Commission (SOPAC) of 2015, Pakistan falls in category of extremely vulnerable country and ranks at 201 out of 234 countries.
On the Climate Change Vulnerability Index (CCVI) of 2015, released by global risks advisory, rated Pakistan at ‘extreme risk’ with ranking it at number 13 in 170 countries.
Experts estimate that environmental issues may cost Pakistan’s economy over Rs.450 billion every year (Economic survey of Pakistan, 2015). Moreover, Pakistan has predominantly an agrarian economy so natural resources play an important role in attaining prosperity. In the econonomy of Pakistan, agriculture sector contributes 22 percent of GDP. Out of total labor force 45 percent is employed in agriculture sector.
Such huge dependency of Pakistan on the natural resources warrant a better environmental management and better procurement practices (GOP, 2015). The alarming situation in Pakistan, in itself sufficient to justify an investigation of factors which can mitigate the sustainability issues such as sustainable procurement behavior of procurement mangers.
Nevertheless, above mentioned scenarios leading Pakistan to severe socio- economic problems, in an effort to improve the procurement practices and to mitigate the negative impacts of environmental problems government of Pakistan has passed laws and regulations and has set environmental standards aimed at reducing industry carbon, greenhouse gas emissions and other environmental issues (Jasti, 2015;
Sanchez, Biller, Afzal, & Enriquez, 2014). Even though there is involvement of political leaders and public authorities but there appears to be a wide gap among the ambition to act sustainably and on ground practices (Javid & Sharif, 2016). Therefore, a critical investigation is needed to find what factors are hindering the implementation
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of sustainble public procurement practices in Pakistan and how management and Pakistani government’s participation can improve the present level of implementation of SPP practices by enhancing the sustainable behavior (Noor, 2014).
Ideally organizations and government required to purchase green service and products however organizations are prevented to such purchases due to lack of awareness, costs, limited suppliers and lack of sustainable behavior (Weiss, Anita, Mughal & Zeb, 2012). Sustainable procurement behavior is considered as an important factor in successful implementation of sustainable government procurement practices (Balm, Amstel & Zunder, 2016; Weingaertner & Moberg, 2014).
The evolvement of organizational policies and systems to procure green products and services is essential but mere introduction of new procedures or systems is not sufficient for successful implementation of sustainability initiatives it often depends on procurement manger’s behavior (Daily, Bishop & Govindarajulu, 2009). Therefore it is important to understand and study the triggers which can overcome the inertia and can lead to changes in the behavior of procurement management (Meehan and Bryde, 2011).
On sustainability awareness Veleva and Ellenbecker (2001) presented a new methodology for raising organizations’ awareness of sustainability by using core and supplemental indicators. A method of awareness of green technology with respect to environmental sustainability was studied by Chou and Chou (2012). These studies were limited to examining specific sides such as manufacturing and operations. Studies have also shown the direct relationships of awareness, values, attitude and practices of
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the people towards a better quality environment (Oskamp & Schultz, 1996). As
“sustainable public procurement” is playing an increasingly important role in stimulating the demand for environmentally friendly products and services, therefore there is a strong emerging need to analyze which factors drive the inclusion of environmental criteria in public procurement processes. (Testa et al., 2016).
Sustainable behavior of procurers can be one factor pursuing to include sustainable criterion in the procurement process (Shen, Zhang & Zhang, 2016). Study by Mostafa et al., (2015) in Egyptian public sector discovered that public service motivation (PSM) is a motivational factor that influences the organizational commitment of public officials.
Leadership contributes to employee willingness to change and the implementation of all organizational change ultimately depends on the support of employees (Kuipers et al., 2014). Furthermore, various researchers generally agreed that organizational culture have pivotal role in implementation of sustainable practices (Voet, 2013).
Harris and crane (2002) highlighted that organizational culture plays an important role in adaption of sustainable practices, in support of this view Brio, Fernandes and Junquera (2007) stated that organizational culture is vital indicator and determinant in failure or success of implementation of green practices. Limited empirical research has investigated the effects of green organizational culture in public procurement. In the organizational change, scholars considers commitment to change as the most important determinant of employees behavior and desirable work outcomes (Choi 2011) and found it effective in altering sustainable behaviors (Lokhorst et al., 2013).
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Limited studies have been found on sustainable behavior and commitment to change of public procurers or of commitment to change in the specific context of sustainable public procurement (Erridge & Hennigan, 2012).
Walker and Brammer (2012), argued that managers in purchasing departments are not sure as to how they can incorporate social and ethical issues in buying process. On a similar note, Lember et al. (2015), said that public organizations procurers have developed risk averse behavior and less exposure to be involved in projects with risks such as procurement of sustainable products and services due to their previous polices/rules of public procurement.
Relevant literatures also highlights that for procurers to be willing to have sustainable procurement they need to be willing to change their past practices and thus their behavior (Palmujoki et al., 2010). It has been seen that there is negligence on part of Punjab (Pakistan) government departments in making contracts, despite presence of policies the procurers are not catering for sustainble procurement for example pre- qualifications to offer tenders lacks inclusion of sustainable products standards. Lack of tendency to change to sustainable procurement behavior in the procurement management is one of the barrier in the non-implementation of the sustainable practices. Besides this overall willingness to act for the environment and a sense of concern for the environmental sustainability issues are significantly low in Pakistan (Nazish, 2015).
In prior researches, most of the studies about sustainability are conducted in the context of developed countries and very few studies are conducted in developing economies
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(Bratt & Oldmark, 2013; Melissen & Reinders, 2012). Beside this most of the earlier researches are conducted in Europe, Australia and America and less attention is paid in the Asian continent particularly in Pakistan. Various studies have been made on private entities but in the public sector, research in sustainability is still at a preliminary stage and further study is needed (Alcaraz-Quiles et al., 2014; Dumay et al., 2010;
Lodhia & Park, 2012). In field of sustainability management surprisingly there is a limited empirical research on the factors which may affect an organization to adopt sustainable practices (Roman, 2017). In extant literature, it is also found that there is scarcity of quantitative procurement models focusing on the environmental sustainability (Aktin & Gergin, 2016).
Even though there has been a rise in number of studies in the field of sustainability but studies have failed to explain (or they are inconsistent in there results) how organizations can successfully implement the practices of sustainability and how to improve the sustainable behavior (Seuring & Muller, 2008; Grandia, 2012; Pagell &
Shevchenko, 2014).An attention to sustainable procurement behavior is a timely input to the debate concerning the role of the procurement managers in sustainable public procurement implementation in public sector.Therefore, there is a dire need to address the gap in the existing research work on the factors effecting the sustainable procurement practices and behavior (Mansi & Pandey, 2016).
Additionally, a more detailed understanding of the factors due to which procurers undertake the sustainable procurement is important for the researchers and government policy makers wanting behavioral change and pursuing solutions to the sustainability issues in developing countries (Bronfman et al, 2015) such as Pakistan.
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Hence, sustainable behavior deserves further investigation in Pakistan because the findings of the previous studies may not be generalizable to the Pakistani context due to cultural and contextual differences.
The purpose of this study is to investigate the relationship between sustainable behavior and personal values, public service motivation, leadership style and awareness with mediating role of the commitment towards change. This study has employed moderating variable of green organizational culture. Numerous studies considered the role of moderating variables as moderator due to the reason that it can influence the nature of relationship (Dawson, 2014).
Nonetheless in existing literature there are no studies found to date, explaining or testing relationship in this research setting. Besides this, there are also no empirical studies in public procurement in region and in Punjab, Pakistan on sustainable behavior of public procurers.
Drawing from prior research in the areas of personal values, public service motivation, leadership style and awareness, hypothesis are generated regarding relationships among personal values, public service motivation, leadership style and awareness and commitment to change and Sustainable behavior. These hypothesized relationships were tested in the empirical study in the procurement departments of Punjab, Pakistan.
This study can significantly contribute to the knowledge of policy makers, politicians, and management of public procurement to improve upon the public procurement strategies, rules and regulations and training of procurer. Furthermore, the government department can gain advantages in terms of improving their public oriented sustainable
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practices which can ultimately improve the environmental conditions, reduce poverty, and meet the criterions promised in global initiatives of climatic change. Therefore keeping in view the aforementioned, it was imperative to address the issue, by investigating the factors influencing the sustainable public procurement behavior of the procurement management in government departments of Punjab (Pakistan) which can eventually improves the implementation process of sustainable procurement practices in Pakistan.
1.4 Research Questions
Based on the problem statement above the following specific questions were addressed in the study:
1. How does the personal values, awareness, leadership style and public service motivation effects the sustainable procurement behavior?
2. How does personal values, awareness, public service motivation and leadership style influence the commitment towards change?
3. Does commitment towards change mediates the relationship between personal values, awareness, leadership styles and public service motivation and sustainable procurement behavior?
4. How does commitment towards change influence the sustainable procurement behavior?
5. Does green organizational culture moderates the relationship between the commitment towards change and sustainable procurement behavior?
1.5 Objectives of the Study
The main objective of the study is to offer a solution for enhancement of the sustainable procurement behavior among procurer in province of Punjab in Pakistan. The specific objectives of the proposed research are as follows:
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1. To examine the relationship between personal values, awareness, leadership style and public service motivation and the sustainable procurement behavior.
2. To examine the relationship between personal values, awareness, public service motivation and leadership style and the commitment towards change.
3. To ascertain and examine the mediating effect of commitment towards change between personal values, awareness, leadership styles and public service motivation and sustainable procurement behavior.
4. To examine the relationship between commitment towards change and sustainable procurement behavior.
5. To investigate the moderating impact of green organizational culture between commitment to change and sustainable procurement behavior.
1.6 Significance of the Research
This study is significant from a number of perspectives. The research study has theoretical, practical, empirical and methodological significance and added to the body of literature in sustainable procurement behavior. The government of Pakistan has taken numerous steps to enhance sustainable procurement in public sector but so far sustainable procurement practices are not implemented with satisfactory pace in the country. This study has shed light on the factors effecting the sustainable procurement behavior of the procurers and recommended measures to improve the sustainable behavior which can lead to the successful implementation of sustainable public procurement practices in the Punjab, Pakistan.
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More precisely, the present study offers further understanding on the relationship among the PV, AW, PSM and LS and SPB of the procurement managers working in government departments of Punjab, Pakistan. The study also provides more clarity on moderating role of green organizational culture on the relationship between commitment towards change and sustainable procurement behavior of the procurement managers.
In addition, the study shed light on the mediating role of commitment towards change on the relationship of PV, AW, PSM and LS of the procurers in the government departments of Pakistan.
1.6.1 Theoretical Significance
With regards to theory this study made positive contribution by expanding the knowledge on three theories including theory of planned behavior, value-belief and norm theory and public service motivation theory. These theories were found to be relevant and useful in studies of sustainable procurement behavior. Theory of planned behavior was an underpinning theory for this study and supportive theories were theory of value-belief and norm theory and public service motivation theory. Study of these theories with above mentioned variables added value to the body of literature. In general, the research study had some other contributions and has added value to the body of knowledge as highlighted below:
Firstly, previous researches on the subject of sustainable public procurement mostly emanates from developed countries perspective (Awizie & Emuze, 2016). This study was conducted in Punjab (Pakistan), therefore a comparison of the outcomes can be made. Additionally, there is lack of empirical studies investigating the sustainable
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behavior in public sector in south Asia and there is no study so far in Pakistan. This study has made an attempt to fill this theoretical gap in the current literature.
Secondly, literature reveals that limited research has been conducted to examine or test the relationship between variables (personal values, leadership style, and awareness and public service motivation) and sustainable behavior with mediation effect of commitment towards change in public procurement in context of Pakistan, besides this there is acute shortage of empirical –based research work in this area. Therefore, this research has added value to the existing limited empirical research stream.
Third, this research study made an attempt to test the moderating impact of the green organization culture between commitment to change and sustainable behavior in the context of public procurement in Pakistan. Moreover, there is deficiency of studies exploring the moderating role of green organizational culture between commitment towards change and sustainable procurement behavior in the public sector in south Asia and in Pakistan.
1.6.2 Empirical and practical contribution
The study has provided an empirical evidence on the sustainable procurement behavior by examining the relationship of personal values, public service motivation, leadership style and awareness in public procurement. Mediating effect of commitment to change and moderating role of green organizational culture was also examined. Therefore, the study will benefit, scholars, researchers, practitioners, political leaders, organizational management and government procurement officials.
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The current study investigated the factor’s affecting the sustainable procurement behavior of the procurement managers and highlighted the problem areas in the enhancement of the sustainable public procurement behavior which needs to be rectified. In this regard, few recommendations were put forwarded by the researcher, which may be applied to boost the commitment towards change and enhance the behavioral tendency of procures to implement sustainable procurement practices efficiently and effectively in the government departments of Punjab, Pakistan.
In Pakistan’s context current study is the first of its kind (to date) which can provide a significant contribution in the development of polices, practices and legislation in regards to sustainable public procurement in government departments of Pakistan, to improve the sustainable procurement behavior of the procurement managers for example making of new regulations, laws and by-laws The findings can also assist procurement mangers of government departments to better understand the main factors that needs to be avoided and factors which are required to be encouraged in order to improve the sustainable procurement behavior.
1.7 Scope of Study
The study focuses on the sustainable procurement behavior of the procurement managers in government departments of Punjab (Pakistan) with a view to investigate the influence of four variables, namely personal values, leadership style, public service motivation and awareness on sustainable behavior. The study also examined the mediating role of commitment towards change in those relationship. Moreover, the study evaluated the moderating role of green organizational culture on the relationship between the commitment towards change and sustainable procurement behavior.
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The study was conducted in Punjab (Pakistan) using survey method. Questionnaire were administered to the procurement managers of the government departments of Punjab (Pakistan). It was envisaged that procurement managers of the Punjab government departments can have appreciable knowledge of SPP. Hence, the data was collected from them so that study can give a good assessment of the sustainable procurement behavior in the government departments in Punjab, Pakistan.
The current study was restricted to province of Punjab in Pakistan. As this province is the most populated provinces of Pakistan with the population of 101.4 and 56% of the country’s total population lives in this province (GOP, 2015). The budget share of Punjab was 51.74% in total budget of Pakistan, consequently the government of Punjab is making the maximum public procurement as compare to the other provinces.
Moreover, this province has the largest economy in Pakistan, its share in Pakistan's GDP was 54% in 2015 (Economic survey of Pakistan, 2015).
1.8 Definitions of Key Terms
The main definitions of the study are appended below:
1.8.1 Sustainable procurement behavior
It is considered that sustainable procurement behavior is the set of actions aimed at protecting the socio-physical resources of this planet. Griffin, Neal and Parker (2007) defines work behaviors as the facets of behavioral engagements. Sustainable procurement behavior represents when procurer cater for the environmental issues when procuring products or services.
29 1.8.2 Commitment towards change
Commitment to change is considered as a mindset or force which binds persons to specific course which is essential for success of implementation of change. This force has three dimensions affective commitment (inherent benefits are believed if adapted the change), continuance commitment to change (there will be cost if not provided support for the change) and normative commitment to change (supporting change due to sense of obligation) (Herscovitch & Meyer, 2002).
1.8.3 Personal values
Personal values are the human being’s normative standards by which they are influenced in making their choice between the availabele alternate courses of actions (Parks & Feldman, 2015). It is considered that values are desirable goals, varying in importance, that serve as guiding principles in people’s lives. Personal values/commitment effects on attitudes and behavior towards sustainability (Ian Alcock, 2012). Personal values can be refered as the personal values of the procurement managers in regards to sustainability issues.
1.8.4 Public Service Motivation (PSM)
Public service motivation (PSM) is an individual’s predisposition to reply to motives grounded uniquely or primarily in government or public organizations or institutions (Perry & wise, 1990). In general, these are beliefs, values, and attitudes that go beyond self-interest and organizational interest that concern the interest of a larger political entity and that motivate individuals to act accordingly whenever appropriate.
