EFFECT OF SUSTAINABLE PROCUREMENT PRACTICES ON SUSTAINABLE PERFORMANCE OF SMALL AND MEDIUM MANUFACTURING ENTERPRISES (SMMES) IN NIGERIA.

Abstract

Sustainable performance has emerged as a critical determinant for business success in today's globalized economy. This study examines the effects of sustainable procurement practices on sustainable performance of Small and Medium Manufacturing Enterprises (SMMEs) in Nigeria focusing on the integration of economic, social and environmental dimension of sustainability. The Objectives of this study is to identify the sustainable procurement practices of manufacturing SMEs in Nigeria, to assess the key performance indicators for measuring sustainable performance of manufacturing SMEs in Nigeria and to estimate the effect of sustainable procurement practices of manufacturing SMEs in Nigeria on their sustainable performance. Using a quantitative research design, the population of the study consists of 20,736 of Manufacturing SMEs operating in Nigeria with a sample frame of three hundred and seventy-two (372) manufacturing SMEs operating in Kano State. The sample size is one hundred and ninety-one (191) manufacturing SMEs and simple random method was the sampling technique for the study. Data were collected from 268 manufacturing SMEs through structured administered questionnaires with a response rate of 210 valid questionnaires. The techniques of data analysis were Partial Least Squares (PLS) path modelling was employed with the aid of SmartPLS 3.0 software to test the hypotheses. The findings reveal that sustainable procurement practices significantly influence sustainable performance, with Sustainable IT Infrastructure exerting the strongest effect, followed by Top Management Support and Supplier Collaboration. The study's R² value of 0.443 indicates that 44.3% of the variance in sustainable performance can be explained by these predictors. The study contributes to the literature on sustainable procurement and performance, particularly within the context of SMEs in developing economies. The study concludes with practical recommendations for managers and policymakers, emphasizing the need for capacity building, policy support, and strategic investments in sustainable practices.