Factors Affecting Green Procurement Implementation on...
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Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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Factors Affecting Green Procurement
Implementation on Procurement
Performance in Rwandan State
Corporations-A Case of Rwanda Housing
Authority
Albert BUMALI1 and Patrick MULYUNGI
2
(Jomo Kenyatta University of Agriculture and Technology, Department of ETLM, P.O 3373.Box Kigali
Rwanda)
Abstract: Green Procurement is one of the emerging issues in procurement. It was observed that the Rwanda
construction industry is still a high demand for wood products, sol and stones for construction and leads to
deforestation leaving large tracts of land bare and exposed to erosion; 78.3% of the causes of deforestation is
from construction needs. The general objective of this study is to establish the factors influencing green
procurement implementation for procurement performance with specific objectives as follow: To establish the
effect of staff competence; contractor; organization policy and stakeholder participation in green procurement
implementation. The study adopted Descriptive Research Design. The target population is 660; stakeholders,
contractors, suppliers and employees of the Rwanda housing Authority while the sample size considered is 66
which represents 10 % of the target population. The findings of the study revealed that majority (83.3%) of the
respondents agreed that green procurement implementation affects procurement performance in Rwanda
Housing Authority. The coefficients table results show that staff competence (β=0.216, p=0.084), contractor
participation (β=0.311, p=0.022), Organization policy (β=0.365, p=0.026) and stakeholder participation
(β=0.044, p=0.809) were all found to be positively and significantly affecting green procurement
implementation on procurement performance in Rwanda Housing Authority.
Keywords: Green procurement, procurement performance, organizational policy, contractor, competence,
Rwanda housing authority.
I. INTRODUCTION
Urbanization development, demography, land issues and environmental concerns have contributed to
intensifying interest in green procurement; global constructing and building has experienced rapid changes in
our days; green procurement, a term used in various ways but that may best be described as acquisition of
products and services with smaller than average environmental footprints. Fully assessing a product or service
requires integrated evaluation of cost, performance, and impacts for a set of green factors over all stages of the
life cycle. Green building is an example of this approach (Eric A., 2010). Green procurement is an approach to
improve performance of the process and products according to the requirements of the environmental
regulations (Hsu & Hu, 2008). The rise in greenhouse emissions and pollution of the environments by firms has
precipitated the need for organizations to realign their procurement operations with a view of conserving the
scarce resources.
Global perspective on green procurement implementation
Communities all over the world are facing the dramatic consequences of climate change, natural
resource reduction, and threats to biodiversity and increasing poverty. The current focus on a global climate
change agreement, as highlighted by the 2007 United Nations Climate Change Conference in Bali, initiatives to
address carbon emissions and general public recognition that immediate action is required to address the
potential risks posed by climate change. This includes a change of practices and procedures across all levels of
society and in the public and private sectors. According to Salam (2008), the types of environmental impact that
are due to the coordinated activity of companies in a supply chain include global warming, reductions in air
quality, pollution of waterways and widespread loss of biodiversity.
Buildings account for 40% of worldwide energy use, which is much more than transportation.
Furthermore, over the next 25 years, CO2 emissions from buildings are projected to grow faster than any other
sector (in the USA), with emissions from commercial buildings projected to grow the fastest 1.8% a year
through 2030 (USGBC report, 2006). The basic legal acts adopted at EU level policies regulating Public
Procurement are: Directive 2004/18 of the European Parliament and of the Council of 31 March 2004 on the
Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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coordination of procedures for the award of public works contracts, public supply contracts and public service
contracts and Directive 2004/17/EC which covers the procurement procedures of entities operating in the water,
energy, transport and postal services sectors. Directives clarify how the authorities may contribute towards
environmental protection via Public procurement (Renata K., 2014).
Green procurement implementation in Rwanda
In 1997 the Government of Rwanda (GoR) established the National Tender Board (NTB) with the
mandate of organizing and managing the public procurement process and implementing the general public
procurement policy on its behalf. During its ten years of existence, the NTB made an important contribution in
the area of ensuring a transparent and fair public procurement. It was a major actor in the drafting of the law on
procurement, procurement regulations and standard bidding documents and the law establishing the RPPA. In
December 2007, the law no 63/2007of 30th December 2007 established RPPA and took over the activities of the
National Tender Board.
The Government through Rwanda Public Procurement Authority provides tools/instruments used in
public procurement such as standard bidding documents, procurement plan formats and organize training
sessions for procuring entities. The government also enacts laws governing public procurement considering
green procurement in different sectors. In 2000, Rwanda elaborated the Vision 2020, a plan expected to
transform the country from a low to medium-income country with a healthy and productive population. Half-
way to the Vision 2020, great progress has been made in all sectors, and economic growth has doubled from a
per capita gross domestic product of US$ 250 to more than US $510 by 2010. Most of the growth that Rwanda
has experienced in the last 10 years has come from infrastructure development: housing, energy, roads, water
supply, Information and Communication Technologies (ICTs) and lately irrigation (REMA, 2011).
Statement of the problem
Many of environmental issues that occur are due to lack of environmental considerations in the
exploitation, development and management of resources as well as lack of control of pollution resources. It was
observed that the Rwanda construction industry is still a high demand for wood products for construction and
leads to deforestation leaving large tracts of land bare and exposed to erosion; 78.3% of the causes of
deforestation is from construction needs. The loss of land are estimated at 14 million tonnes annually. The
construction also exploits other natural resources such as stones and sand without proper control that contributes
to environmental problems. Most of the drains in Kigali are inappropriate and cause problems due to their
conception and construction. RHA did not consider these during recent public construction tenders (MIDIMAR
report, 2011).
Within a period of ten months (Dec. 2010-Sept. 2011); disasters produced a complex web of impacts,
which spans many sectors of the economy. During this same period, Rwanda registered 43 losses of lives and 73
people were seriously injured. Besides, 1854 houses were destroyed by heavy rains in rural areas, 2, 989. 9 Ha
of crops were damaged and 100 classrooms were completely destroyed in different parts of the country. As a
result, the cost of the intervention activities in terms of disaster response and recovery to assist the victims was
estimated to more than 515,520,000 Rwandan francs (MIDIMAR report, 2011). Different government
interventions have been carried out in the last years to promote an adequate, safe and well-maintained building
infrastructure and services so as to effectively contribute to the socio-economic development of the country
(MININFRA, 2010).
This study is taking place at a time when environmental awareness is on the increase; if procurement
function is handled carelessly it has a potential of causing harm to the environment. Given the importance of
green procurement, the absence of studies on green procurement implementation in Rwanda provides a gap in
literature that the present study seeks to bridge. This study therefore seeks to provide a systematic and
comprehensive insight into the state of green procurement implementation for procurement performance in
Rwanda housing Authority. The research poses the questions on how staff competence does, contractor
participation, organizational policy, stakeholder participation affect implementation of green procurement in
Rwanda housing authority.
Objectives of the study
General Objective
The general objective of the study is to establish the factors that influence of green procurement
implementation for procurement performance of Rwanda housing authority.
Specific objectives
To assess the effect of staff competence on green procurement implementation in Rwanda housing
authority
To determine the effect of contractor participation on green procurement implementation in Rwanda
housing authority
To establish the effect of organizational policy on green procurement implementation in Rwanda
housing authority
Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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To find out the effect of stakeholder participation on green procurement implementation in Rwanda
housing authority
Research Questions
How does staff competence affect green procurement implementation in Rwanda housing authority?
Does contractor participation affect green procurement implementation in Rwanda housing authority?
To what extent does organizational policy influence green procurement implementation in Rwanda housing
authority?
Does stakeholder participation affect green procurement implementation in Rwanda housing authority?
Scope of the study
The study was carried out at Rwanda housing authority head office located at Kacyiru, Kigali town.
The target population of the study is 660 personnel within Rwanda housing authority, out of the above a sample
size of 66 was studied. Rwanda housing authority is appropriate area for the study because is the state
corporation in Rwanda which is dealing with green procurement and commits to implement the policy mostly
during procuring works for central government buildings.
II. RESEARCH METHODOLOGY Introduction
This chapter discussed the research design that used, the target population, sampling methodology data
collection and data analysis method employed. The pilot validity and reliability of the research instruments was
discussed.
Research design
The research design constitutes the blue print for the collection, measurement and analysis of data,
(Kothari, 2008). This research used descriptive research design. This kind of research design aims at generating
information after the event has occurred. The research design looked at the reasons why the situation behaves
the way it is. The design utilized both qualitative and quantitative approaches. Qualitative approach includes use
of interviews, while a quantitative approach involves use of descriptive statistics generated with frequency
tables and Charts. These approaches were adopted to enable the researcher to get and analyze relevant
information concerning people’s opinions about the effect of green procurement implantation on procurement
performance of Rwanda state corporations case Rwanda housing authority.
Target population
Population refers to an entire group of persons or elements that have at least one thing in common.
Population also refers to the larger group from which a sample is taken (Jackie C., 2017). Study population is a
complete set of individuals, cases or objects with some common observable characteristics. The study
population included respondents from suppliers, contractors, stakeholders, top management, human resource,
procurement and finance departments of the organization. Sighted as no significant better results can be
obtained through a survey of the entire study population of 660, a representative sample size of 66 respondents
were selected to save both time and money.
Sample design and sample procedures
A sample is a set of observations drawn from a population by a defined procedure. The sample
represented a subset of manageable size. The sample was drawn from the population that represented the
employees, contractors, suppliers and stakeholders of Rwanda housing authority. This research adopted a
stratified random sampling technique in selecting the sample. The technique produces estimates of overall
population parameters with greater precision and without bias because the numbers are random (Mark Saunders,
et al, 2009). The use of sample enables the researcher to save time and costs associated with studying the entire
population (Mark Saunders, et al, 2009). This also involved random selection of respondents from each stratum.
Mugenda and Mugenda (2009) states that sampling is the process of extracting a group of respondents from a
target population who will be used to generalize and represent the whole population.
For the researcher to get the appropriate sample frame, the researcher used stratified and simple random
sampling design, where in stratified, the target population was divided into different strata’s or small groups i.e.
S1+S2+S3+S4+S5+S6 =N (different strata’s i.e. ministries make the target population). According to Mugenda
and Mugenda (2009) 10% of the target population represents an adequate sample for the study. The selected
respondents were issued with questionnaires.
Table 3.1: Sample
Frame
Department Target Population (N) (10%N) Sample size
Top management 27 2.7 3
Procurement 19 1.9 2
Contractors and suppliers 204 20.4 20
Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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Stakeholders 387 38.7 39
Human resource staff 10 1 1
Finance staff 13 1.3 1
TOTAL 660 66
Where n: sample size
N: Target population The sample size was: (660x10/100)
Calculation =10% N×10/100 =66
(e): sampling error= 5%
Level of confidence=95%
Data collection instruments
According to Mugenda & Mugenda (2009) data collection is the means by which information is
obtained from the selected subject of an investigation. The main instrument for data collection were structured
questionnaires that allowed for uniformity of responses to questions. Questionnaires give the study
comprehensive data on a wide range of factors. Closed-ended questions were used. Questionnaires allowed for
greater uniformity in the way questions are asked and ensure greater compatibility in the responses. The study
also used secondary sources of information such as books, newspapers and online business journals.
Reliability and validity of research instrument
Validity of research instrument
Validity is concerned with whether the findings are really about what they appear to be about (Mark
Saunders et al, 2009). It is concerned with how accurate data obtained in the study represents the variables of the
study. For a data collection instrument to be considered valid, the content selected and included must be relevant
to the need or gap established. Before the actual study, the questionnaire was discussed with supervisors. The
feedback from the supervisors has been considered in modifying the questionnaires. Validity is the accuracy and
meaningfulness of implications, which is based on the research results.
Reliability of research instrument
Reliability refers to the extent to which your data collection techniques or analysis procedures would
yield consistent findings (Mark Saunders et al, 2009). If a researcher administers a test to a subject twice and
gets the same score on the second administration as the first test, then there is reliability of the instrument
(Mugenda and Mugenda, 2009). The test re-test technique was performed to estimate the reliability of the
instruments. This involved administering the same test twice to the same group of respondents who have been
identified for this purpose.
Data analysis and presentation
After data collection, data was checked for completeness, accuracy, errors in responses, omissions and
other inconsistencies. The data was then coded using numerals in order to put them in limited numbers of
categories. The data has been processed using SPSS software version 21. Data was then classified, tabulated and
summarized using descriptive measures: percentages, mean, standard deviation, and frequency distribution
tables while tables were used for presentation of the findings. Pearson correlation analysis was employed to
know the relationship between the variables.
Regression analysis model
Multiple linear regression analysis was used to determine the effect of green procurement
implementation on procurement performance in Rwanda state corporations. In this section the study represented
the regression results. Regression was used to determine the relationship between the staff competence in green
procurement, contractor participation support green procurement, organization policy on green procurement and
stakeholder participation on green procurement with procurement performance of Rwanda housing authority.
The model is represented by:
Y= β0+β1X1+β2X2+β3X3+β4X4+ε
Where Y = Procurement Performance,
Xi are the variables, for i=1, 2, 3, 4
Ni are the slope coefficients, for i=1, 2, 3, 4
β0 is the vertical intercept for the dependent variable and ε is the random error.
III. RESEARCH FINDINGS AND DISCUSSION
Introduction
This chapter presents the results of the study as per questionnaires distributed for data collection. It
displays the response rate and further presents the analyzed data using the SPSS 21 version software. Regression
Analysis was used to examine the factors affecting green procurement implementation in Rwanda state
corporations; case study of Rwanda housing authority. Procurement performance as a result of green
procurement implementation (dependent variable) is explained by the staff competence, contractor participation,
Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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organization policy and stakeholder participation (independent variables). The data was collected fully from the
questionnaire as the research instrument. The questionnaire was designed in line with the objectives of the study
and the analysis of the data was based on a general weight of 1 to 5 (1-Not at all, 2-small extent, 3-moderate
extent, 4-Great extent and 5- very great extent).
Reliability Test
Reliability is a measure of the degree to which a research instrument yields consistent results or data
after repeated trials (Mugenda & Mugenda, 2009). During the pilot study, two repeat mailings of the instrument
were carried out to improve the overall response rate before sending the actual instrument to allow for pre-
testing of the research instrument.
Cronbanch’s alpha for each value was established by the SPSS application and evaluated against each
other at a cut off value of 0.7 which is acceptable according to Cooper and Schindler (2008). According to table
4.1 all the values were above 0.7 which concludes that the data collection instrument was reliable.
Table 4.1: Reliability test
Response Rate
Response rate is defined as the extent to which the final data sets includes all sample members and is
calculated as the number of respondents with whom questionnaires are completed and divided by the total
number of respondents in the entire sample including non-respondents (Jackie C., 2017). The researcher targeted
66 respondents from staff in different departments, stakeholders and contractors of Rwanda Housing Authority.
But, 62 questionnaires were filled correctly and returned. This interprets to 93.9%. This admirable response rate
was made a reality after personal visits to remind the respondent to fill-in and return the questionnaires. This
response rate was considered adequate because a response rate of above 60% is acceptable (Kothari, 2008).
Table 4.2: Response Rate
Category Frequency Percent (%)
Response 62 93.94
Non response 4 6.06
Total 66 100
Demographic information of respondents
As part of the demographic information, the research requested the respondents to indicate gender, age,
level of education, job level, experience working with Rwanda Housing Authority and departments.
Gender distribution of the Respondents
The study sought to find out the gender of the respondents. From the findings as shown in figure 4.1,
64.5% of the respondents were male while only 35.5% of the respondents were female. This response indicates
that there is a slightly acceptable distribution of gender. In addition it shows that both genders were fine
involved in this study and thus the findings of the study did not suffer from gender bias.
Figure 4.1: Gender distribution
Variable Cronbach’s Alpha No of Items
Staff competence .797 3
Contractor participation .868 4
Organizational policy .896 4
Stakeholder participation .703 3
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Highest level of education of respondents
The results of table 4.3 show that majority of respondents are holders of a Bachelor’s degree
represented by 64.5%. 17.7% of the respondents are holders of Postgraduate degree; 8.1% hold high school
qualifications; then 9.7% of the respondents have other qualifications. This is understood to mean that
respondents from Rwanda Housing Authority have enough knowledge to contribute in green procurement and
procurement performance. I addition, the educated respondents mean that they are well informed with
procurement activities and provided this study with better information which added value.
Table 4.3: Education level
Education level Frequency Percent
High school 5 8.10%
Bachelor 40 64.50%
Postgraduate 11 17.70%
Other 6 9.70%
Total 62 100%
Job management level of respondents
The study wanted to establish the job level of management the respondents working with Rwanda
Housing Authority that responded in the study. The research findings were as listed in the table 4.4; the majority
of respondents were the middle level managers 59.7% followed by the lower level managers 29% with top
managers represented by 11.3%. This is because both low level and middle level managers are the ones who are
involved in implementation procurement strategies. Top management are involved in strategic decision making
related to green procurement and procurement performance.
Table 4.4: Job management level
Job level Frequency Percent
Lower management 18 29%
Middle management 37 59.70%
Top management 7 11.30%
Total 62 100%
How long working with RHA
The study wanted to explore the number of years each respondent had worked with Rwanda Housing
Authority. Majority 40.3% of the respondents had a working experience of between 1-2 years and 38.7% had a
working experience of 3-4 years. 11.3% had a working experience of 5 years and above and minority 9.7% had
a working experience of less than 1 year as shown in the results of table 4.4. This shows that the big number of
respondents had at least one year of working experience with the organization which is new State Corporation in
Rwanda and therefore they have the necessary knowledge and skills about green procurement and procurement
performance which Researcher considered useful for this study.
Table 4.5: Number of age worked with RHA
Work period Frequency Percent
less than 1year 6 9.70%
1-2 years 25 40.30%
3-4 years 24 38.70%
5 years and above 7 11.30%
Total 62 100%
Descriptive analysis of the study
Descriptive statistics are a set of brief descriptive coefficients that summarizes a given data set, which
can either be a representation of the entire population or a sample. The measures used to describe the data set are
measures of central tendency and measures of variability or dispersion.
Staff competence
The study sought to assess the effect of staff competence on green procurement implementation in state
corporations in Rwanda. Staff competence is one of the key drivers of the procurement performance. To have
competent staff helps to improve the quality of service delivery, which leads to increased productivity and
efficiency of the organization. The table 4.5 shows the perception of respondents on staff competence.
Albert BUMALI and Patrick MULYUNGI, International Journal of Research in Management, Economics and
Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, Page 53-66
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From table 4.6, majority of the respondents agreed to the fact that staff competence affects green
procurement implementation for procurement performance in the state corporations. This is evident from the
table where 4.8% to a small extent agreed that improved quality service delivery affects procurement
performance followed by 11.3% who agreed to moderate extent while 30.6% agreed to a great extent and 41.9%
agreeing to a very great extent; only 11.3% said not at all. When asked whether the increased productivity of the
organization affects the green procurement implementation for procurement performance in Rwanda state
corporations, 3.2% agreed to a moderate extent, 90.3% agreed to a great extent while 6.5% agreed to a very
great extent. When asked whether improved efficiency in an organization affects green procurement
implementation for procurement performance in Rwanda state corporations, 30.6% agreed to a small extent,
69.4% agreed to a great extent. Generally, with improved quality, increased productivity and efficiency as a
results of staff competence affect green procurement implementation and procurement performance.
Table 4.6: Percentages distribution of respondents’ perception on staff competence
Staff competence not at all Small extent Moderate
Extent
Great extent very great
extent
Improved quality of
service 11.3% 4.8% 11.3% 30.6% 41.9%
Increased productivity 0% 0% 3.2% 90.3% 6.5%
Improved efficiency 0% 0% 30.6% 69.4% 0%
These findings are agreeing with Liu Bin (2009) in his study stated that in the process of implementing
green procurement, the enterprise is bound to increase investment, training staff costs and the communication
costs with suppliers ,etc., which hence causes the loss of other investment opportunities
Contractor participation
The study sought to determine the effect of contractor participation on green procurement
implementation for procurement performance in state corporations in Rwanda.
Table 4.7: percentages distribution of respondents’ perception on contractor participation
Contractor participation not at all Small extent Moderate
Extent
Great extent very great
extent
Increased profit margin 3.2% 6.5% 6.5% 29% 54.8%
Improved design
and quality 0% 3.2% 30.6% 66.1% 0%
Improved
relationship 0% 0% 24.2% 58.1% 17.7%
From table 4.7, majority of the respondents agreed that contractor participation affects procurement
performance in Rwanda state corporations. This is evident from the table the respondents agreed that increased
profit margin affects procurement performance where 3.2% said not at all, 6.5% agreed to small extent followed
by 6.5% who agreed to a moderate extent, 29% agreed to a great extent and 54.8% agreeing to a very great
extent. When asked whether the improved design and quality affect procurement performance in Rwanda state
corporations, 3.2% agreed to a small extent, 30.6% agreed to a moderate extent, while 66.1% agreed to a great
extent. When asked whether improved relationship affects procurement performance in Rwanda state
corporations, 24.2% agreed to a moderate extent. 58.1% agreed to a great extent while 17.7% agreed to a very
great extent. There must therefore be an implementation of mechanism that enforces good relationship between
RHA staff, stakeholders and suppliers and contractors. The findings here are the same line with miles (2010),
where indicated that Green procurement programs should be as simple as purchasing renewable energy or
recycled office paper or more involved such as setting environmental requirements for suppliers and contractors.
Green products or services utilize fewer resources, are designed to last longer and minimize their impact on the
environment from cradle to grave. In addition, green products and services have less of an impact on human
health and may have higher safety standards. Whilst some green products or services may have a greater upfront
expense, they save money over the life of the product or service (Miles, 2010).
Organization policy
The study wanted to establish the effect of organization policy on green procurement implementation
for procurement performance in state corporations in Rwanda.
From table 4.8, majority of the respondents agreed that organization policy affects procurement performance in
Rwanda state corporations. This is evident from the table the respondents agreed that enhanced compliance with
laws and regulations governing green procurement affect procurement performance where, 8.1% agreed to small
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extent followed by 43.5% who agreed to a moderate extent, 38.7% agreed to a great extent and 9.7% agreeing to
a very great extent; this confirms Rwanda public procurement authority (RPPA) regulations which says that
adherence to public procurement procedures is critical to ensure that public funds are used in the best possible
way. There must therefore be a sound enforcement mechanism that ensures procuring entities comply with the
laws and regulations governing green procurement.
Table 4.8: Percentages distribution of respondents’ perception on organization policy
Organization policy not at all Small
extent
Moderate
Extent
Great extent very great
extent
Compliance 0% 8.1% 43.5% 38.7% 9.7%
Transparency and
accountability 0% 0% 0% 62.9% 37.1%
Contractor diversity and
quality 0% 14.5% 43.5% 40.3% 1.6%
When asked whether the Transparency and accountability in procurement activities and processes
affect procurement performance in Rwanda state corporations, 62.9% agreed to a great extent while 37.1%
agreed to very great extent. When asked whether Contractor diversity and quality in tender evaluation affect
procurement performance in Rwanda state corporations, 14.5% agreed to a small extent; 43.5% agreed to a
moderate extent; 40.3% agreed to a great extent while 1.6% agreed to a very great extent. Researcher is in
agreement with Lozano (2013) who suggested that before a green procurement program can be implemented,
current purchasing practices and policies must be reviewed and assessed. A life cycle assessment of the
environmental impacts of products or services is required and a set of environmental criteria against which
purchase and contract decisions are made has to be developed. The outcome is a regularly reviewed green
purchasing policy that is integrated into other organisational plans, programs, and policies.
Stakeholder participation
The study sought to establish the effect of Stakeholder participation on green procurement
implementation for procurement performance in state corporations in Rwanda.
Table 4. 9: Percentages distribution of respondents’ perception on stakeholder participation
Stakeholder
participation
not at all Small extent Moderate
Extent
Great extent very great
extent
Involving committee 4.8% 11.3% 40.3% 35.5% 8.1%
Advertising of tender 0% 6.5% 29% 43.5% 21%
Level of user
involvement
0% 0% 38.7% 61.3% 0%
From table 4.9, majority of the respondents agreed to the fact that stakeholder participation affects
procurement performance in Rwanda state corporations. This is evident from the table; 4.8% said not at all
while 11.3% agreed to small extent that stakeholder participation enhances the level of involving committee and
affect procurement performance followed by 40.3% who agreed to a moderate extent, 35.5% agreed to a great
extent and 8.1% agreeing to a very great extent. When asked whether the advertising of tender affect
procurement performance in Rwanda state corporations, 6.5% agreed to small extent, 29% agreed to moderate
extent, 43.5% agreed to a great extent while 21% agreed to very great extent. When asked whether the level of
user involvement affect the procurement performance in Rwanda state corporations; 38.7% agreed to a moderate
extent while 61.3% agreed to a great extent. Other researcher stated that superior financial resource could lead to
visibility, thereby leading to more pressure from external constituents. External stakeholders could also perceive
firms with financial resources to be in a position to use the excess discretionary slack resources to overcome the
risk and unpredictability in adopting the proper supply-side environmental practices (Menguc et al., 2010).
Procurement performance
Respondents were asked the extent to which the institution has achieved the procurement performance
as a result of green procurement implementation in RWANDA state corporations. From the findings in the
Table 4.10 below it shows that the institution has realized a comprehensive range of benefits resultant from
green procurement implementation in RHA. Among the listed include: organization efficiency, effectiveness
and quality services in procurement performance.
Majority of the respondents agreed to the fact that green procurement implementation has brought
about organization efficiency in procurement performance. Only 3.2% said not all, 8.1% agreed to this fact by
small extent, 24.2% agreed to moderate extent, 46.8% agreed to a great extent and 17.7% agreed by a very great
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extent. The findings are in agreement with Hussein & Shale (2014) who say that sustainable procurement
practices help to improve the organizational efficiency and quality service delivery. When asked whether green
procurement implementation has impacted the effectiveness of procurement performance in Rwanda state
corporations, 58.1% of the respondents agreed to a great extent while 41.9% agreed to a very great extent. When
asked whether green procurement implementation has helped to achieve quality service in procurement
performance in Rwanda state corporations, 58.1% of the respondents agreed to a great extent while 41.9%
agreed to a very great extent.
Table 4.10: percentages distribution of respondents’ perception on procurement performance
Procurement
performance
not at all Small extent Moderate
Extent
Great extent very great
extent
Organization Efficiency 3.2% 8.1% 24.2% 46.8% 17.7%
Effectiveness 0% 0% 0% 58.1% 41.9%
Quality Services 0% 0% 0% 58.1% 41.9%
Regression Analysis
In addition, the researcher conducted a linear multiple regression analysis so as to test the relationship
among variables (independent) on the green procurement implementation. The study applied the statistical
package for social sciences (SPSS) version 21 to code, enter and compute the measurements of the multiple
regressions for the research.
Correlations of the Study Variables
Table 4.11 illustrates the correlation matrix among the independent variables. Correlation is often used
to explore the relationship among a group of variables (Pallant, 2010).
Table 4.11: Correlations of the Study Variables
Staff
competence
Contractor
participation
Organizati
on policy
Stakeholder
participation
Procurement
performance
Staff
competence
Pearson
Correlation
1
Sig. (2-
tailed)
N 62
Contractor
participation
Pearson
Correlation
.928** 1
Sig. (2-
tailed)
.000
N 62 62
Organizatio
n policy
Pearson
Correlation
.805** .793** 1
Sig. (2-
tailed)
.000 .000
N 62 62 62
Stakeholder
participation
Pearson
Correlation
.904** .868** .912** 1
Sig. (2-
tailed)
.000 .000 .000
N 62 62 62 62
Procurement
performance
Pearson
Correlation
.885** .883** .840** .872** 1
Sig. (2-
tailed)
.000 .000 .000 .000
N 62 62 62 62 62
The correlation matrix table shows presence of strong and significant positive relationship between
staff competence and contractor participation (r=0.928, p=0.000). This is because the competent staff impacts on
how procurement process is done before they sign contracts. There is an evidence of insignificant less
relationship between contractor participation and organization policy as attributed by the p-value and correlation
coefficient (r=0.793, p=0.000). This relationship is less than others but is good; this is because contractor
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struggling to comply which policies say. From the table, all the independent variables are strongly positively
related to procurement performance as confirmed by the respective correlation coefficients: staff competence
(r=0.885), contactor participation (r=0.883), organization policy (r=0.840) and stakeholder participation
(r=0.872). All the relationships are rendered significant since their p-values are less than 0.05. Accordingly, the
ranking of the independent variables with their contribution to procurement performance was: staff competence
contributed more to procurement performance in Rwanda Housing Authority (88.5%), followed by contractor
participation (88.3%), then by stakeholder participation (87.2%) and finally organization policy (84%).
Regression Analysis Results
A multiple linear regression analysis was done to examine the relationship of the independent variables
with the dependent variable. The adjusted R2 is the coefficient of determination. This value explains how
procurement performance varied with staff competence, contractor participation, and organization policy and
stakeholder participation. The model summary table shows that four predictors can explain 83.3% of change in
procurement performance namely staff competence, contractor participation, organization policy and
stakeholder participation an implication that the remaining 16.7% of the variation in v could be accounted for by
other factors not involved in this study.
Table 4.12: Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .919a 0.844 0.833 0.39659
Predictors: (Constant), Staff competence, Contractor participation, Organization policy, Stakeholder
participation
ANOVA Analysis of variance (ANOVA) was done to establish the fitness of the model used. The ANOVA table
shows that the F-ratio (F=77.223, p=.000) was statistically significant. This means that the model used was
appropriate and the relationship of the variables shown could not have occurred by chance.
Table 4.13: ANOVA
Model Sum of Squares df Mean
Square
F Sig.
1 Regression 48.583 4 12.146 77.223 .000a
Residual 8.965 57 0.157
Total 57.548 61
According to Mugenda & Mugenda (2009), ANOVA is a data analysis procedure that is used to
determine whether there are significant differences between two or more groups or samples at a selected
probability level. An independent variable is said to be a significant predictor of the dependent variable if the
absolute t-value of the regression coefficient associated with that independent variable is greater than the
absolute critical t-value. The regression analysis also yields an F-statistic where if the calculated F-value is
greater than the critical or tabled F-value, the prediction will be rejected. In this study, the significance value is
.000 which is less that 0.05 thus the model is statistically significant in predicting corporate social responsibility,
product re-usability, supplier involvement and ethical practices. The F critical at 5% level of significance was
6.13. Since F calculated is greater than the F critical (value = 77.223), this shows that the overall model was
significant.
The estimated coefficients (βs) show the contribution of each independent variable to the change in the
dependent variable. The coefficients table results show that staff competence (β=0.216, p=0.084) positively and
significantly affected green procurement implementation on procurement performance in Rwanda Housing
Authority. The results also show that contractor participation (β=0.311, p=0.022) positively and significantly
affected green procurement implementation on procurement performance in Rwanda Housing Authority.
Organization policy (β=0.365, p=0.026) and stakeholder participation (β=0.044, p=0.809) also were found to be
positively and significantly affecting green procurement implementation procurement performance in Rwanda
Housing Authority.
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Table 4.14: Coefficients of Determination
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B
Std.
Error
Beta
1 (Constant) 0.092 0.285 0.321 0.749
Staff competence 0.216 0.123 0.295 1.757 0.084
Contractor
participation
0.311 0.132 0.338 2.352 0.022
Organization policy 0.365 0.16 0.295 2.281 0.026
Stakeholder
participation
0.044 0.182 0.043 0.243 0.809
Dependent variable: Procurement performance
The above table gives the results for the regression coefficient for the multiple linear equation (Y=β0+ β1X1+
β2X2+ β3X3+ β4X4+ε) which by providing the coefficients becomes:
Y= 0.092 + 0.216X1 + 0.311X2 + 0.365X3 + 0.044X4
Where:
Y= Procurement performance
X1= Staff competence X2= Contractor participation
X3= Organization policy X4= Stakeholder participation
ε = the error term
According to the regression equation established, holding all independent factors a constant then
procurement performance will be 0.092 units. From the regression equation holding all other independent
variables a constant, a unit increase in staff competence will lead to a 0.216 increase in procurement
performance; a unit change in contractor participation will lead to a 0.311 increase in procurement performance;
a unit increase in organization policy will lead to a 0.365 increase in procurement performance and a unit
increase in stakeholder participation will lead to a 0.044 increase in procurement performance. The results
further conclude that of all the predictors considered in this study organization policy contributes the most to
procurement performance followed by contractor participation as concerned by their larger coefficients.
IV. SUMMARY, CONCLUSION AND RECOMMENDATIONS Introduction
This chapter presents the summary of the study findings, conclusions made based on the study
objectives and recommendations of the study as well as suggestions for further research.
Summary of Findings
This study wanted to establish the effects of green procurement implementation on procurement
performance in state corporations in Rwanda, a case of Rwanda Housing Authority. The specific objectives that
guided the study included to determine the effect of staff competence on procurement performance in state
corporations, to find out the effect of contractor participation on procurement performance in state corporations,
to establish the effect of organizational policy on procurement performance in state corporations and to assess
the effect of stakeholder participation on procurement performance in state corporations. This study used
descriptive research design to achieve these objectives. The study population comprised of 660 respondents at
Rwanda Housing Authority and specifically top management, Procurement Department, RHA contractors and
suppliers, stakeholders of RHA, Finance and Human resource Departments.
These different departments are directly or indirectly involved in the implementation of green
procurement on procurement performance. This study used stratified random sampling technique. The sample
size was 66 respondents achieved by use of Mugenda and Mugenda (2003). Structured questionnaire containing
close-ended questions was used to collect primary data for this study. The questionnaires were distributed using
drop-and-pick later method to the respondents. A pilot study was carried out among RHA staff who did not take
part in the main study. Data collected was analyzed using descriptive and inferential analysis methods. A
multiple linear regression analysis was used to analyze the effect of staff competence, contractor participation,
organizational policy and stakeholder participation on procurement performance. SPSS version 21 was used to
aid in data analysis. Data analysis results were presented using charts and tables. Multiple linear regression
results have shown that four predictors can explain 83.3% of change in green procurement implementation and
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procurement performance namely: staff competence, contractor participation, and organization policy and
stakeholder participation.
Staff competence effect on green procurement implementation for procurement performance
The findings have shown that Rwanda Housing Authority has qualified and trained staff in place
depending on their duties and responsibilities regarding green procurement. The findings show that Rwanda
Housing authority operates clearly with documentations, reports and guides for procurement activities to
procurement performance. The results revealed that staff competence affect green procurement implementation
for procurement performance at Rwanda Housing Authority. The results have also shown that staff competence
positively and significantly affected green procurement implementation in Rwanda Housing Authority.
Contractor participation effect on green procurement implementation for procurement performance
The study also showed that Rwanda Housing Authority has a good relationship with contractors and
suppliers to make decision regarding green procurement implementation. The organization has put in place
appropriate mechanisms which ensure that each party in contracts is accountable about green procurement
implementation. The results have revealed that contractor participation affect procurement performance in
Rwanda Housing Authority. Contractor participation was also found to positively and significantly that affect
green procurement implementation and procurement and procurement performance in Rwanda Housing
Authority.
Organization Policy effect on green procurement implementation for procurement performance
The study also showed that Rwanda Housing Authority adheres to various government and internal
policies relating to green procurement The organization follows RPPA guides for public procurement activities
and has put in place a committee to supervise and evaluate if all policies are respected during procurement
processes and contracts management. The results have revealed that organization policies affect green
procurement in Rwanda Housing Authority. Organization policy was also found to positively and significantly
that affect green procurement implementation in Rwanda Housing Authority.
Stakeholder participation effect on green procurement implementation for procurement performance
The results have revealed that stakeholder participation has an effect on green procurement
implementation in Rwanda Housing Authority. The RHA stakeholders have a great role in green procurement
and procurement performance by providing trainings to staff, advises and they contribute to put in place policies
facilitating procurement activities. Others provide their preference for green procurement when they are
contracting for construction of houses in Rwanda. The results have revealed that stakeholder participation affect
green procurement and performance in Rwanda Housing Authority. Stakeholder participation was also found to
positively and significantly that affect procurement performance at Rwanda Housing Authority. Lastly, the
study found out that green procurement implantation has reduced the risks of disaster, deforestation and
drainage systems in Kigali is improving.
Conclusions
Following the results of the study, it is meaningful to conclude that there is a great positive relationship
between green procurement implementation and procurement performance. Through staff competence,
contractor participation, organization policy and stakeholder participation, Rwanda Housing Authority is
achieving procurement performance. It is therefore that green procurement implementation in state corporations
and other public-sector institutions can be adopted to achieve far more benefits than the one previously for the
well-being of Rwanda citizens. It provides means for achieving efficiency and control as well as a tool for
regulation. Public sector organizations implement green procurement for contracts to achieve benefits such as
increased efficiency and effectiveness in public procurement and improved quality services delivery in
procurement services.
It aims at achieving efficiency gains as well as value for money. There is also an increasing focus on
quality at all stages of the procurement process and combating the protection of environment and climate
change. In addition, public procurement, the world over, is today being prepared to protect our environment, and
this is reported to have greatly facilitated efficiency. It also enables contractors (suppliers) and stakeholders to
be better informed on procurement processes and aware of criteria and the contents of bids.
Recommendations
The most respondents agreed that green procurement implementation has a great role to increasing the
level of procurement performance, all state corporations and public institutions, even private institutions should
be encouraged to implement sustainable procurement practices since it will support them achieve procurement
performance apart from achieving their strategic function of procurement and environment will be protected at
the end. The organisation and other state corporations in Rwanda should have sufficient special knowledge to
new technology, effective methods when assessing tenders for green procurement implementation. Staff should
be equipped with the specific skills and competencies needed to design and manage contracts including the
associated training, aftersales service and employ human resources with specific training and equipment for
performing functional and environmental tests in order to be able to accept the end product and verify contract
performance. Given the effect green procurement implementation has on procurement performance, it is
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imperative that state corporations start to view green procurement as strategic in value: that they will not only
change the future of their organizations but will also impact positively on environment protection and climate
change challenges. The implementation of green procurement plays a critical role in ensuring the success of the
policy guiding green procurement practice as it will help to achieve efficient procurement in institution.
On financing investment and stakeholder relationship, Rwanda Housing Authority should adopt new
financing methods to save costs, to improve customer and supplier relationships, business processes and
performance. It might also help the organisation to respond better to existing challenges and improve the
anticipation of future developments in green procurement and as public institution should encourage people of
Rwanda to green procurement implementation when constructing their own buildings.
Areas for Further Research
This study was not exhaustive by any means and therefore it is recommended that another study be
replicated in other sectors of the economy, such as ministries, government institutions and private sector. This is
because the implementation of green procurement in Rwanda is still at early stage and therefore it provides a
rich research field that is still growing. A similar research in public sector institutions will also need to be
carried out over time to see if they validate, support or contradict the findings of this particular study.
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