Assessing the Relationship between Sustainable Procurement and Performance Optimization in Selected FMCG Firms

Abstract

In the pursuit of maintaining a competitive advantage and ensuring long-term business success, it has become imperative for manufacturing industries and businesses to adopt eco-friendly techniques and protocols in their operations. This is essential not only for preserving productivity but also for achieving sustainability in a highly competitive environment. Consequently, the primary aim of this study is to gain an in-depth understanding of the impact of green procurement management on the operational performance of selected fast-moving consumer goods (FMCG) companies in Lagos State, Nigeria. The study employed both descriptive and causal research designs, utilizing survey methods to examine whether green procurement management practices influence the profitability of selected manufacturing firms. The research population comprised 990 individuals, from which a sample size of 285 was determined. A structured and well-administered questionnaire served as the primary data collection instrument. Notably, 269 complete questionnaires were retrieved and appropriately filled out. The reliability of the research instrument was confirmed with Cronbach’s alpha coefficient of 0.9966. Data was analyzed using multiple regression analysis. Findings revealed a significant relationship between green procurement management practices and organizational performance. The study concludes that these eco-friendly practices positively impact the performance of selected FMCG firms in Lagos. It recommends broader adoption of green procurement practices across Nigeria, Africa, and globally. Furthermore, future research should focus on small and medium-sized enterprises (SMEs) in other geopolitical zones or states.