The impact of internal and external factors on sustainable procurement: a case study of oil and gas companies

Abstract

The contentious and growing sustainability concerns within the UAE's oil and gas industries have highlighted the necessity of systematically examining the internal and external organisational factors that influence sustainable procurement (SP) in the industry. This study investigates the internal and external factors most influencing SP in the UAE's oil and gas industry. Utilising questionnaires, the researcher obtained data from 100 procurement professionals working in three oil and gas companies operating in the UAE. The research framework, developed through an extensive literature review, was analysed and tested using structural equation modelling (SEM). The results reveal that both internal and external factors have a positive and statistically significant impact on sustainable procurement, although internal factors have a relatively greater effect. This study found that leadership in change management, internal management structure, management strategy, and infrastructure cost management, are the most influential internal factors affecting SP, whilst social and economic factors are the most influential external factors. An emphasis on these internal and external factors can help oil and gas companies operating in the UAE greatly improve their level of SP performance.