Navigating Stakeholder Demands: How Green Supplier Collaboration Influences Procurement Performance in Public Institutions

Abstract

This study examines the moderating effect of stakeholder pressure on the relationship between green supplier collaboration and procurement performance in Kenya’s food and beverage manufacturing sector. Drawing on the Resource-Based View, Institutional Theory, and Transaction Cost Economics, the study employed a moderated multiple regression model using data from 253 procurement professionals across 197 firms. The results revealed that green supplier collaboration, when considered independently, did not have a statistically significant effect on procurement performance (β = 0.011, p = 0.155). However, stakeholder pressure—operationalized as regulatory pressure exerted a significant positive influence (β = 0.099, p < 0.001) and moderated the relationship between green collaboration and procurement performance (interaction term β = 0.001, p = 0.021). Significantly, the negative standardized beta for the interaction (β = –0.045) suggests that under high regulatory scrutiny, the marginal benefit of green collaboration may diminish. Firm age (β = 0.068, p < 0.001) and firm size (β = 0.016, p = 0.007) were also significant predictors of procurement performance. These findings underscore the conditional nature of sustainability initiatives and highlight the importance of aligning internal capabilities with external institutional pressures to achieve procurement efficiency. The study contributes to procurement and sustainability literature by clarifying the interaction dynamics and offering policy-relevant insights for developing economies.