Factors Affecting Green Procurement Implementation on...

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





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





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





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,


Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 05, May 2018, 3-66



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





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.





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


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





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


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


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





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


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





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.





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





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





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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