EXPLORING KEY DETERMINANTS OF GREEN PROCUREMENT IMPLEMENTATION FOR CONSTRUCTION PROJECTS: A MEASUREMENT MODEL IN STRUCTURAL EQUATION MODELLING (SEM)

Abstract

Green procurement procures goods and services and works to minimize negative impacts throughout their life cycle. It is a concept introduced as a way forward towards a greener approach aligned with Agenda 21 towards sustainable development. The 12th Malaysia Plan emphasized the Malaysian government's strategic commitment to integrate environmental considerations into its procurement processes. This shows Malaysia's commitment towards sustainable development and promoting environmentally responsible practices in the sectors. However, there are several challenges faced by the industry in green procurement (GP) implementation, such as lack of commitment, low awareness and knowledge of green procurement and policy enforcement. This study explores the key determinants, focusing on authority, accountability, policy, and knowledge, that influence green procurement implementation. This study employs quantitative methods, and a questionnaire survey was used as the data collection technique. The data was analyzed using a measurement model in Structural Equation Modelling (SEM) Analysis of Moment Structure (AMOS) version 28 to identify and analyze the interrelationships among influential determinants such as authority, accountability, policy and knowledge of green procurement implementation. The findings highlight the key determinants of green procurement that significantly affects green procurement implementation. Critical insights of the findings provide strategic recommendations to overcome the limitations of current green procurement practices, and by addressing these gaps, this study contributes to more effective green procurement implementation practices in construction projects, highlighting planning & policy formation, compliance, stakeholder engagement, education and knowledge sharing, transparency and accountability, collaboration, management support, guidelines and construction stakeholders role throughout the construction phases.