The Influence of Sustainable Procurement Orientation on Firm Performance: Moderating Effect of Institutional Isomorphism

Purpose: This research study examined the influence of sustainable procurement orientation on firm performance: Moderating effect of institutional isomorphism. Design/Methodology/Approach: A cross-sectional survey was adopted in this study. 600 firms were randomly sampled from Ghana, and firms aged more than 2 years were considered. A cross-sectional survey research design was adopted for this study. Inferential analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The initial findings indicated that a sustainable procurement orientation had a causal effect on firm performance. The findings further established a statistically significant indirect influence of institutional isomorphism on sustainable procurement orientation and credence to the theorisation that normative and cultural-cognitive isomorphisms moderated the relation between sustainable procurement orientation and firm performance. Research Limitation: Due to the cross-sectional design, generalisability was limited to the Ghanaian context. Practical Implication: Coercive isomorphism has a positive direct influence on firm performance, suggesting that it can foster a sustainable procurement orientation. This implies that, on the other hand, managers in the public sector, particularly State-Owned Enterprises in this context, should leverage the public procurement law to create demand for and supply sustainable products and services. Social Implication: Normative isomorphism can be an incentive to enhance an organisation's operational performance; firms should understand that the market environment is dynamic and strongly influenced by normative isomorphism. Originality/Value: The framework advances the understanding of how internal organisational capabilities and external institutional mechanisms jointly influence resilience outcomes.