Abstract:
ABSTRACT
The construction industry plays a pivotal role in Pakistan's economic
development, driving infrastructural progress and creating job opportunities. However,
the industry faces challenges in adopting sustainable procurement practices, which are
vital in reduction of environmental impact and improving project outcomes. This research
focused on investigating the impact of sustainable procurement on construction projects
in Pakistan, specifically examining how this approach can enhance project performance.
This research investigates the impact of sustainable procurement practices on project
performance in Lahore's construction sector. Using a quantitative approach, data was
collected from 258 stakeholders, including project managers and procurement officers in
PEC-approved firms. The research has adopted Equation Modeling (SEM) to determine
the relationship between sustainable procurement, seller commitment, and the moderating
role of Project Management Office. The results indicate that sustainable procurement
significantly enhances project performance, with seller commitment acting as a strong
mediator in this relationship. However, project management offices were found to have
an insignificant moderating effect on the link between sustainable procurement and seller
commitment, although they positively influence seller commitment's impact on project
performance. These findings suggest that while sustainable procurement practices can
improve cost-efficiency, quality, and environmental outcomes, further integration of
project management offices in procurement processes is necessary to maximize benefits.
This research provides actionable insights for construction firms and policymakers to
adopt more sustainable procurement methods, contributing to the broader goal of
sustainable development in Pakistan.
