FACTORS INFLUENCING GREEN PROCUREMENT ADOPTION IN FOOD AND BEVERAGE SME

Abstract

This research focuses on identifying factors influencing Malaysian food and beverage SMEs in adopting green procurement in business operations. Green procurement is a tool to protect the current environment for the next generation by minimizing waste. A quantitative approach is used in this research while food and beverage SMEs in Kuala Lumpur was the focus area. Four independent variables have been identified in this study namely customer awareness, cost, competition and regulations. This research demonstrates that adoption of green procurement does indeed net positive benefits to organizations and contributes to overall sustainability of the environment and economy. Nevertheless, organizations are sceptical in implementing green procurement on a larger scale due to factors such as lack of awareness and lack of cost benefit analysis. As such, strategically developing green procurement by realizing the full extent of benefits in green procurement requires proper planning and support from authorities and management likewise.