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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
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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
1
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
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