How Environmental Factors (Regulatory Policies, Customers' Demands, Competitions, and Societal Expectation) interact with internal factors (Top management support, ICT infrastructure, Suppliers Management Practices, and Policies) in influencing the adoption of Green procurement in Pharmaceutical industry of Pakistan: The complementary role of Operational Cost

Yasarat Tariq and Danish Ahmed Siddiqui

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: Green procurement integrates environmental considerations into purchasing decisions, aiming to minimize negative ecological impacts throughout a product’s lifecycle. Despite increasing global attention to sustainability, the pharmaceutical sector in Karachi has been slow to adopt such practices due to barriers like limited awareness, insufficient regulatory pressure, and perceived high costs. This study investigates the factors influencing the adoption of green procurement practices in the pharmaceutical industry of Pakistan. The research identifies and evaluates both internal factors—such as top management support, ICT infrastructure, and supplier management—and external influences including regulatory policies, customer expectations, competitive pressure, and societal norms. We infer that External factors influence internal factors which in turn effect the adoption of adoption of Green procurement. And this will ultimately lead to better suppliers performance. We also contend that the effect of internal factors on green procurement is moderated by operational cost in a way that higher operating costs will weaken the of these factors on green procurement. Empirical validity was established by conducting a survey using close ended questionnaire. Data was collected from 85 respondents and analyzed using confirmatory factor analysis and structured equation modeling. The findings reveal that top management support, customer demand, societal pressure, ICT Infrastructure, and operational cost considerations significantly drive the adoption of green procurement in the pharmaceutical industry, whereas regulatory policies, competition, and supplier management practices were found to be less influential. The results also highlight a mediation effect, whereby external factors such as customer demands, societal expectations, and regulatory frameworks indirectly influence green procurement adoption through internal organizational capabilities, including leadership commitment, ICT infrastructure, and regulatory compliance mechanisms. For instance, strong customer demand and societal pressure encourage top management support and ICT investment, which in turn foster sustainable procurement adoption. Furthermore, the study identifies a moderation effect of operational cost, indicating that the relationship between internal drivers (e.g., top management support, ICT infrastructure) and green procurement adoption is influenced by the cost burden; high operational costs can weaken this relationship, whereas manageable costs can strengthen it. Ultimately, adopting green procurement practices leads to improved supplier performance and supports global Sustainable Development Goals (SDGs), particularly SDG 3 (Good Health and Well-Being), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action), thus promoting responsible consumption, climate action, and sustainable industrial growth. These findings provide valuable insights and practical recommendations for pharmaceutical firms and policymakers in Karachi to design targeted strategies that enhance organizational Infrastructure while addressing cost-related barriers to sustainability.

Keywords: Green Procurement; Pharmaceutical Industry; Sustainable Development Goals (SDGs); Cost; Top Management Support; ICT Infrastructure; Management Practices; Policies; Pressure; Customer Demand; Environmental Sustainability; Resource-Based View (RBV); Procurement Strategy (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/341041/1/2 ... 0%20BY%20YASARAT.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:341041

Access Statistics for this paper

More papers in EconStor Preprints from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().