An integrated structural equation modeling and fuzzy qualitative comparative analysis model for examining green procurement adoption drivers

Abstract

This research examines the factors that influence the implementation of green procurement in small and medium enterprises (SMEs), namely top management commitment, regulations, costs, pressure from consumers, and transformational leadership as moderation. The research employs a quantitative approach with 206 samples from the Indonesian SME industry. It utilizes Structural Equation Modeling (SEM) and Fuzzy-set Qualitative Comparative Analysis (FsQCA). The data set includes factors such as top management commitment, regulations, costs, consumer pressure, and transformational leadership as moderation variables. The results show that management commitment, regulations, costs, and customer pressure influence green procurement. The role of the moderating variable shows that transformational leadership only strengthens the influence of costs on green procurement and regulation on green procurement. Meanwhile, the influence of top management commitment to green procurement and customer pressure on green procurement shows that transformational leadership does not strengthen these variables. The research’s novelty lies in combining SEM and FsQCA to analyze the causal relationships among variables influencing green procurement in SMEs. It highlights the importance of understanding and effectively managing these relationships for organizations adopting green procurement practices.