Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology
Abstract
:1. Introduction
“a process whereby public and semi-public authorities meet their needs for goods, services, works and utilities by seeking and choosing outcomes and solutions that have a reduced impact on the environment throughout their whole life-cycle, as compared to conventional products/solutions. A procurement procedure will be considered as ‘green’ only if it has led to the purchase of a substantively ‘greener’ product and only if the environmental characteristics of this product go beyond what needs to be complied with on the basis of European or national environmental legislation.”[5]
2. Impact of Green Procurement on Competition, Reflected in the Economic Literature and the Hypotheses Development
- contracts for the acquisition of goods, in which case the selection of offers will take into account the life cycle of the product, respectively the opportunities for reuse of the goods offered, specific to the circular economy and the impact of the re-use process on the environment;
- service provision contracts, by contracting the technical expertise in the field of environmental protection, and;
- works contracts, which should be based on impact studies on the quality of environmental factors.
3. Econometric Analysis of the Behavioral Model
3.1. Theory of Rational Behavior in Economic Modeling
3.2. Research Methodology
4. Model Estimation and Results
4.1. Measurement Models
4.1.1. Construct Validity
4.1.2. Divergent Validity
4.2. Structural Model
- δ-the vector for the endogenous latent variables;
- ϕ-the vector for the exogenous latent variables;
- Σ-the residual variable vector;
- Λ and Γ–matrices of the path coefficients.
5. Results and Discussions
6. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Strategic Vision (SV) | |
vs_1 | Existence of priority environmental objectives, made aware at the organization level (on a top-down scale), through programs to streamline the use of resources |
vs_2 | The existence of a cooperation partnership in the field of sustainable economy with organizations in the public and/or private environment (chambers of commerce, entrepreneurs’ associations, universities, central or local public authorities, etc.) |
vs_3 | Existence of a management strategy oriented to reintegration programs of the resources used in the production circuit |
vs_4 | Participation in the green procurement procedures organized by the public authorities |
Reglementation (Reglem) | |
Reglem_1 | Funding programs from European and/or national public funds |
Reglem_2 | Economic incentives provided for in national legislation, favorable to investments in “green” projects |
Reglem_3 | Existence of a legal framework adopted in the field of green procurement |
Competences (Compet) | |
Compet_1 | Participation in discussion forums and information exchanges with profile organizations, to transfer knowledge of developments and expertise in the field of green procurement |
Compet_2 | Training courses for specialists in the field of environmental policy and public procurement, especially in the field of green procurement |
Compet_3 | Knowledge of specific and/or functional criteria in the field of green procurement that ensures compliance with the legislation in the field |
Compet_4 | Innovative technologies research to reduce energy consumption, extend product life, and reuse resources |
Integrated operational management (Oper) | |
Oper_1 | Existence of a procurement and strategy department to respond adequately to external requests (business partners, public authorities, etc.) |
Oper_2 | Existence of a logistics department, responsible for packing, recycling, resource reuse, low energy consumption, etc. |
Oper_3 | The existence of an applied research department, which integrates innovative products and/or technologies in the production circuit |
Oper_4 | The existence of an integrated data flow, available to the directorates within the organization |
Social responsibility (Resp) | |
Resp_1 | Carrying out campaigns of social involvement, by presenting the benefits of green acquisitions |
Resp_2 | CSR and ethics programs at the organization level |
Resp_3 | Incentives provided to employees for compliance |
Innovation (Inov) | |
Inov_1 | Holding certifications in the field of organic production (for example, the use of eco-label labels) |
Inov_2 | Holding patents/licenses for environmentally friendly technologies |
Endogenous Variable: Competition Degree | |
---|---|
Conc_1 | Number of competitors in the green procurement market |
Conc_2 | The price offered for green purchases versus the reference price on the market |
Conc_3 | The degree of concentration on the green procurement market |
Variable | Dillon Golsteins’ Rho | Cronbach’s Alpha | Composite Reliability | AVE | VIF |
---|---|---|---|---|---|
VS | 1.000 | 1.000 | 1.000 | 1.000 | 2.131 |
REGLEM | 1.000 | 1.000 | 1.000 | 1.000 | 1.548 |
COMPET | 0.687 | 0.708 | 0.835 | 0.708 | 1.476 |
OPER | 0.637 | 0.732 | 0.682 | 0.684 | 2.674 |
RESP | 0.626 | 0.756 | 0.664 | 0.624 | 2.386 |
INOV | 0.645 | 0.789 | 0.678 | 0.618 | 2.274 |
Latent Variables | AVE | The Square Root of the Correlation Coefficients between Latent Variables | |||||
---|---|---|---|---|---|---|---|
SV | Reglem | Compet | Oper | Resp | Inov | ||
VS | 1.000 | 1 | |||||
REGLEM | 1.000 | 0.621 | 1 | ||||
COMPET | 0.825 | 0.679 | 0.512 | 1 | |||
OPER | 0.748 | 0.528 | 0.491 | 0.531 | 1 | ||
RESP | 0.729 | 0.683 | 0.608 | 0.596 | 0.612 | 1 | |
INOV | 0.688 | 0.602 | 0.543 | 0.580 | 0.602 | 0.548 | 1 |
Research Hypothesis | Coefficients | Standard Error | t-Value | p-Value |
---|---|---|---|---|
H1: Strategic Vision -> Green procurement competition | 0.658 | 0.246 | 3.648 | 0.005 |
H2: Regulation -> Green procurement competition | 0.712 | 0.278 | 2.831 | 0.029 |
H3: Competence -> Green procurement competition | 0.584 | 0.202 | 3.289 | 0.009 |
H4: Operational -> Green procurement competition | 0.608 | 0.209 | 2.405 | 0.036 |
H5: Responsibility -> Green procurement competition | 0.379 | 0.247 | 1.789 | 0.242 |
H6: Innovation -> Green procurement competition | 0.622 | 0.248 | 3.234 | 0.008 |
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Busu, C.; Busu, M. Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology. Mathematics 2021, 9, 16. https://doi.org/10.3390/math9010016
Busu C, Busu M. Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology. Mathematics. 2021; 9(1):16. https://doi.org/10.3390/math9010016
Chicago/Turabian StyleBusu, Cristian, and Mihail Busu. 2021. "Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology" Mathematics 9, no. 1: 16. https://doi.org/10.3390/math9010016
APA StyleBusu, C., & Busu, M. (2021). Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology. Mathematics, 9(1), 16. https://doi.org/10.3390/math9010016