Advancing Supply Chain Efficiency Through Sustainable Procurement Practices: Evidence from Sachet Water Manufacturing Firms
DOI:
https://doi.org/10.58425/jpscm.v4i1.386Keywords:
Sustainable procurement, ethical procurement, operational performance, supply chain efficiency, construct validity, multicollinearityAbstract
Aim: This study examines the role of ethical procurement practices in enhancing operational efficiency, reducing costs, minimizing waste, and improving overall supply chain performance in the sachet water manufacturing industry.
Methods: This study employed a descriptive, cross-sectional research design, utilizing primary data collected through a structured survey administered to 170 employees and managers from sachet water manufacturing firms. Data analysis was conducted using SPSS, incorporating descriptive statistics, correlation, regression, and reliability tests. The reliability of the constructs is confirmed by the high Cronbach's alpha values, with EP and OP showing a high degree of internal consistency at 0.833 and 0.865, respectively. In addition, a Kaiser-Meyer-Olkin (KMO) value of 0.916 and a significant Bartlett's test (p < 0.05) confirm the excellent sampling adequacy and the construct validity, thus supporting the suitability of the data for factor analysis.
Results: Correlation analysis highlights the significant role of ethical sourcing in driving operational performance, underscoring the importance of integrating sustainability into procurement strategies. Multiple regression analysis further identifies EP as a key predictor of operational performance, while non-significant predictors suggest areas for future research. Although multicollinearity is not a major concern, caution should be exercised when interpreting variables with higher variance inflation factors (VIFs). The normality of the residuals in the regression model is reasonably satisfied, reinforcing the reliability of the findings.
Conclusion: The study concludes that prioritizing ethical procurement can substantially improve supply chain efficiency.
Recommendation: These results provided actionable insights for practitioners to prioritize ethical sourcing practices to improve supply chain efficiency. They also provide a foundation for researchers to explore other operational performance drivers.
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