Financial capacity and sustainable procurement: the mediating effects of sustainability leadership and socially responsible human resource capability

Abstract

This study examines the effects of organizational financial capacity on sustainable procurement and the extent to which socially responsible human resource capability and sustainability leadership mediate this relationship. Data obtained from 322 organizations through quantitative surveys were analyzed using structural equation modeling. The results suggest the following: financial capacity has a significant positive effect on sustainable procurement; financial capacity has a significantly positive effect on socially responsible human resource capability; sustainability leadership and socially responsible human resource capability mediate the positive effect of financial capacity on sustainable procurement. The research contributes to the literature a perspective on the mechanisms through which organizational financial capacity influences sustainable procurement via socially responsible human resource capability and sustainability leadership. The insights provided will inform management decisions and actions regarding how organizational finance can be leveraged strategically to optimize sustainable corporate practices and outcomes.