Green capabilities, green purchasing, and triple bottom line performance: Leading toward environmental sustainability

Abstract

Abstract Despite the vast literature on green purchasing practices and sustainability, the role of an organization's green capabilities in defining green purchasing practices for triple‐bottom‐line performance has received limited attention. This research intends to empirically evaluate the impact of green capabilities on green purchasing practices to boost the triple‐bottom‐line performance of manufacturing organizations. We analyzed 386 manufacturing organizations' responses using the covariance‐based structural equation modeling approach. The results indicate a positive correlation between green capabilities and purchasing habits; however, green innovation capabilities did not establish a statistically meaningful correlation. Additionally, green buying strategies have significant favorable associations with the triple bottom line of performance. The results contributed to the advancement of the resource‐based‐view theory by empirically examining the impact of green capabilities and green purchasing practices in influencing the triple‐bottom‐line performance of manufacturing firms.

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