The Effect of Sustainable Procurement Practices on Organizational Performance: A Study of Selected Manufacturing Companies in Nigeria

• Author(s): Yawa Makeri Habila ; Benedict Anayochukwu Ozurumba ; A.B.C. Akujuobi ; Chijindu Promise Ubah
• Paper ID: 1709627
• Page: 1699-1711
• Published Date: 05-08-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 1 July-2025

Abstract

This study aimed to explore the effect of sustainable procurement practices on the organizational performance of selected manufacturing companies in Nigeria. The research arose from the need to understand how sustainability initiatives in procurement could impact key performance metrics such as financial outcomes, operational efficiency, market competitiveness, customer satisfaction, waste reduction, and corporate reputation. The study covered manufacturing firms such as Nestlé, Dangote Cement, Nigerian Breweries, and others, providing a comprehensive view of the manufacturing sector's approach to sustainability. Findings reveal that sustainable procurement practices have a significant positive impact on the financial performance of manufacturing companies. Cost reductions, increased revenue, and improved profitability were attributed to better supplier negotiations, enhanced marketability, and long-term cost savings. Operational efficiency was also positively affected, with streamlined processes and improved supply chain coordination due to sustainable sourcing. Companies noted that time management and supplier consistency have improved, leading to reduced delays and fewer disruptions. Additionally, sustainable procurement has helped companies achieve market differentiation, attracting new clients and enhancing long-term competitiveness. Regarding customer satisfaction and loyalty, sustainable procurement was found to foster trust and long-term relationships with customers. Positive feedback regarding sustainability initiatives has led to greater customer retention and loyalty. Furthermore, waste reduction and resource management have seen notable improvements, as companies now manage raw materials more efficiently and minimize waste through eco-friendly sourcing. This has also contributed to a reduction in their environmental footprint and enhanced corporate social responsibility (CSR) efforts. In terms of corporate reputation, the adoption of sustainable procurement has positioned companies as responsible corporate citizens, enhancing their brand image. The study concluded that these practices are essential not only for improving financial and operational performance but also for gaining a competitive edge in the market and ensuring customer loyalty. Sustainable procurement is, therefore, a key driver for long-term success and market relevance. The study recommends that manufacturing companies continue to integrate these practices into their operations, and that policy makers’ support such efforts through regulatory frameworks and incentives.

Keywords

Competitiveness, Organizational Performance, Procurement, Sustainability, Sustainable Procurement

Citations

IRE Journals:
Yawa Makeri Habila , Benedict Anayochukwu Ozurumba , A.B.C. Akujuobi , Chijindu Promise Ubah "The Effect of Sustainable Procurement Practices on Organizational Performance: A Study of Selected Manufacturing Companies in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 1699-1711

IEEE:
Yawa Makeri Habila , Benedict Anayochukwu Ozurumba , A.B.C. Akujuobi , Chijindu Promise Ubah "The Effect of Sustainable Procurement Practices on Organizational Performance: A Study of Selected Manufacturing Companies in Nigeria" Iconic Research And Engineering Journals, 9(1)