Antecedents of Sustainable Procurement and Inclusive Business in South Africa

Abstract

The South African government has embraced inclusive business practices. Relevant policy mechanisms and interventions have been developed to ensure that all economic sectors direct their procurement spend towards supporting low-income beneficiaries to achieve sustainable economic development objectives. However, continued research is necessary to establish whether such inclusive business imperatives can be improved through supply chain management. This empirical study surveyed 248 procurement professionals to investigate the potential supply chain antecedents of sustainable procurement and inclusive business in South Africa. Structural equation modelling showed that four factors, namely strategic partnerships, familiarity with policies, trust within supply chains and organisational incentives, significantly predicted sustainable procurement. Organisational incentives emerged as the strongest predictor of sustainable procurement. Sustainable procurement also significantly predicted inclusive business. Policymakers and practitioners may use this study as a reference point for adopting sustainable procurement policies and strategies in their organisations.