Factors Affecting Green Procurement Implementation on Procurement Performance in Rwandan State Corporations-A Case of Rwanda Housing Authority

Transcription

1 Factors Affecting Green Procurement Implementation on Procurement Performance in Rwandan State Corporations-A Case of Rwanda Housing Authority Albert BUMALI 1 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 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 (β=0.311, p=0.022), Organization policy (β=0.365, p=0.026) and stakeholder (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 Page 53

2 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. Halfway 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 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 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, 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, organizational policy, stakeholder 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 on green procurement implementation in Rwanda housing authority To establish the effect of organizational policy on green procurement implementation in Rwanda housing authority Page 54

3 To find out the effect of stakeholder on green procurement implementation in Rwanda housing authority Research Questions How does staff competence affect green procurement implementation in Rwanda housing authority? Does contractor affect green procurement implementation in Rwanda housing authority? To what extent does organizational policy influence green procurement implementation in Rwanda housing authority? Does stakeholder 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 Procurement Contractors and suppliers Page 55

4 Stakeholders Human resource staff Finance staff TOTAL 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 support green procurement, organization policy on green procurement and stakeholder on green procurement with procurement performance of Rwanda housing authority. The model is represented by: Y= β 0 +β1x 1 +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 β 0 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, Page 56

5 organization policy and stakeholder (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 pretesting 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 Variable Cronbach s Alpha No of Items Staff competence Contractor Organizational policy Stakeholder 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 Non response Total 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 Page 57

6 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 % Bachelor % Postgraduate % Other % Total % 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 % Top management % Total % 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 % 1-2 years % 3-4 years % 5 years and above % Total % 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. Page 58

7 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 The study sought to determine the effect of contractor on green procurement implementation for procurement performance in state corporations in Rwanda. Table 4.7: percentages distribution of respondents perception on contractor Contractor 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 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 Page 59

8 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 The study sought to establish the effect of Stakeholder on green procurement implementation for procurement performance in state corporations in Rwanda. Table 4. 9: Percentages distribution of respondents perception on stakeholder Stakeholder not at all Small extent Moderate Great extent very great 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 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 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 Page 60

9 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 Organization Efficiency not at all Small extent Moderate Extent Great extent very great extent 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 Organizati on policy Stakeholder Procurement performance Staff competence Contractor Organizatio n policy Stakeholder Procurement performance Pearson 1 Correlation Sig. (2- tailed) N 62 Pearson.928** 1 Correlation Sig. ( tailed) N Pearson.805**.793** 1 Correlation Sig. ( tailed) N Pearson Correlation.904**.868**.912** 1 Sig. ( tailed) N Pearson.885**.883**.840**.872** 1 Correlation Sig. ( tailed) N The correlation matrix table shows presence of strong and significant positive relationship between staff competence and contractor (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 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 Page 61

10 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 (r=0.883), organization policy (r=0.840) and stakeholder (r=0.872). All the relationships are rendered significant since their p-values are less than 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 (88.3%), then by stakeholder (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, and organization policy and stakeholder. The model summary table shows that four predictors can explain 83.3% of change in procurement performance namely staff competence, contractor, organization policy and stakeholder 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 1.919a Std. Error of the Estimate Predictors: (Constant), Staff competence, Contractor, Organization policy, Stakeholder 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 F Sig. Square 1 Regression a Residual Total 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 Since F calculated is greater than the F critical (value = ), 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 (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 (β=0.044, p=0.809) also were found to be positively and significantly affecting green procurement implementation procurement performance in Rwanda Housing Authority. Page 62

11 Table 4.14: Coefficients of Determination Model B Unstandardized Coefficients Std. Error Standardized Coefficients Beta t Sig. 1 (Constant) Staff competence Contractor Organization policy Stakeholder Dependent variable: Procurement performance The above table gives the results for the regression coefficient for the multiple linear equation (Y=β 0+ β 1 X 1+ β 2 X 2+ β 3 X3 + β 4 X 4+ ε) which by providing the coefficients becomes: Y= X X X X 4 Where: Y= Procurement performance X 1 = Staff competence X 2 = Contractor X 3 = Organization policy X 4 = Stakeholder ε = the error term According to the regression equation established, holding all independent factors a constant then procurement performance will be units. From the regression equation holding all other independent variables a constant, a unit increase in staff competence will lead to a increase in procurement performance; a unit change in contractor will lead to a increase in procurement performance; a unit increase in organization policy will lead to a increase in procurement performance and a unit increase in stakeholder will lead to a 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 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 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 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, organizational policy and stakeholder 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 Page 63

12 procurement performance namely: staff competence, contractor, and organization policy and stakeholder. 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 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 affect procurement performance in Rwanda Housing Authority. Contractor 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 effect on green procurement implementation for procurement performance The results have revealed that stakeholder 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 affect green procurement and performance in Rwanda Housing Authority. Stakeholder 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, organization policy and stakeholder, 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 Page 64

13 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. V. REFERENCES [1] Adan I.H. (2012). Influence of stakeholders role on performance of Constituencies development fund projects. A case of ISIOLO north constituency, Kenya. [2] Agndal, H and Nilsson, U. (2010). Different open book accounting practices for different purchasing strategies. Management Accounting Research, 21: [3] Antônio (2015). Strategic management: a stakeholder approach. Massachusetts: Pitman. [4] Kofi Osei-Afoakwa (2014). How Relevant is the Principle of Transparency in Public Procurement? [5] Delmas, M. and Toffel, M.W.(2008). Organizational responses to environmental demands: opening the black box. Strategic Management Journal, 29 (10). [6] Eric A. Fischer (2010). Green Procurement: Overview and Issues for Congress. [7] EUCCC, (2010). Procurement market. [8] European Commission, (2011). Public Procurement in Europe, Cost and Effectiveness, Report for European Commission. Bruxelles, March [9] Faith-Ell, C., Balfors, B. & Folkeson, L. (2010), The application of environmental requirements in Swedish road maintenance contracts, Journal of Cleaner Production, Vol. 14 No2. [10] Gould, F., and Joyce, N. (2011). Construction Project Management, Third Edition, New Jersey, USA: Pearson Prentice Hall. [11] Heather burns (2015). Leadership for sustainability: theoretical foundations and pedagogical practices that foster change [12] Hill, C. W (2011). Stakeholder-agency theory. Journal of Management Studies, 29(2), [13] Hussein, I. M. R & Shale, I. N. (2014). Effects of Sustainable Procurement Practices on Organizational Performance in Manufacturing Sector in Kenya: A Case of Unilever Kenya Limited. European Journal of Business Management. [14] Hsu, C.W., & Hu, A.H. (2008). Green Supply Chain Management in the Electronic Industry. [15] Jackie C. (2017). From the classroom to the workplace: how social science students are learning to do data analysis for real [16] Johanna, G. (2008). Environmental stress. From the individual and population perspective. [17] Kippra, (2008). Basic Methods of Policy Analysis and Planning, Englewood cliff, NJ: Prentice Hall. [18] Kiran Bala (2014). Supply Chain Management: Some Issues and Challenges - A Review [19] Kothari, C. R. (2008). Research methodology. Methods and techniques 2nd Revised Edition, Reprint: New Delhi: New Age International Publishers. [20] Liu Bin, Zhu Qinghua (2009). Empirical Study on Practices and Performances of Green Purchasing among Manufacturing Enterprises, Chinese Journal of Management, 6(7), [21] Lozano, M., & Vallés, J. (2013). An analysis of the implementation of an environmental [22] Lyne B (2007). Determinants of Quality Performance in high and low quality plants, Quality Management Journal. [23] Mark Sounders et al. (2009). Research methods for business students 5 th edition. [24] Matthew Kalubanga, Sustainable procurement: concept, and practical implications for the procurement process [25] Menoka Bal, (2013). Stakeholder Engagement: Achieving Sustainability in the Construction Sector [26] MIDIMAR, (2011). Disaster management annual report. Www. midimar.gov.rw/report2011/ [27] MININFRA, (2010). Infrastructure and socio-economic consideration. [28] Monika H. (2011). Corporate social responsibility in the food sector [29] Mostafa, M., (2009). Shades of green: A psycho graphic segmentation of the green consumer in Kuwait using self-organizing maps. Expert systems with Applications. [30] Mugenda, O., &Mugenda, A. (2009). RESEARCH METHODS: Quantitative and Qualitative methods. Nairobi, Rev Editions. [31] Murray, J.G. (2013). Effects of a green purchasing strategy: The case of Belfast city council. Supply Chain Management: An International Journal, 5(1). [32] Murray, M. (2012). Measuring Purchasing Performance: performance measurement. [33] Nadine Kafa (2013). Sustainability Performance Measurement for Green Supply Chain Management [34] Nderitu, K. M & Ngugi, K. (2014). Effects of Green Procurement Practices on Organization Performance in Manufacturing Industry: Case Study of East African Breweries Limited. European Journal of Business Management, 2 (1), [35] Ninlawan, C., Seksan, P., Tossapol K. and Pilada, W. (2010). The Implementation of Green Supply Chain Management Practices in Electronics Industry. [36] Noel C. (2014). Comparison of the Design-Bid-Build and Construction Manager at Risk Project Delivery Methods Utilized for the Construction of Public Schools. [37] Olson, G.E. (2008). Creating an enterprise level green strategy. Journal of business strategy, 29(2), [38] Osborne D. and Gaebler H. (2008) Purchasing and Materials Management. Publisher Library of Congress: USA. [39] Patrick K. & Sonny N. (2010). Procurement processes and performance: efficiency and effectiveness of the procurement function Page 65