Green Purchasing: Capabilities, Practices and Effects on Firms' Triple Bottom Line Performance

Sustainability and the concept of environmental concern have become a mainstream matter triggering firms to utilise green opportunities in their supply chain strategy. However, many firms have concentrated sustainability efforts only on their internal operations. They have disregarded the need to scrutinize their supply base's sustainability practices by developing the internal green purchasing capabilities and embracing green purchasing practices for firm sustainability. One of the concerns for most firms is what green capabilities the firms need to be equipped with to implement green purchasing practices. Using 163 Malaysian manufacturing firms, and PLS technique was used to test the hypotheses empirically. The findings indicate a significant positive effect of green manufacturing, integration, intra-organisational and financial capabilities towards green purchasing practices. The study also revealed that green purchasing practices significantly affect the firms' triple bottom line performance.