Implementing Sustainable Procurement Strategy in the Oil and Gas Sector: Analytic Hierarchy Process Approach

Abstract

The considerable environmental concerns and limited resources have prompted oil and gas companies to incorporate effective sustainable practices into their procurement strategy. This study aims to assess and prioritise critical internal and external organisational factors, and innovative capabilities, and their respective sub-criteria for the implementation of sustainable procurement (SP). Analytical hierarchy process (AHP) is employed to prioritise the main factors and subfactors that can critically affect the implementation of SP strategies in the context of the UAE's oil and gas companies. Data were collected through a survey wherein 10 senior executives in procurement departments of two oil and gas companies reveal the internal factors are the highest and innovation capability is the lowest ranked criterion. Leadership is the highest ranked sub-criteria of internal factors, while ethical and ecological environment as the most prioritised one in external factors. Technology adoption is to be the most important sub-criteria amongst innovation capabilities.