With the proliferation of small businesses in the South African construction
industry as fuelled by the black economic empowerment initiative, competition has
increased significantly. As a result, construction businesses, especially smaller
ones, face the pressure to improve their performance, which increases their chances
of survival and success in this highly competitive industry. This study proposes and
tests a conceptual framework for improving environmental and business
performance in the South African construction industry. Specifically, the study
examined relationships existing between social responsibility, green purchasing,
environmental and business performance using data collected from SMEs operating
in the construction industry.
A quantitative approach using the cross-sectional survey design was applied in
which data were collected from a convenience sample consisting of 213
respondents drawn from SMEs based in Gauteng Province. A structural equation modelling approach using SMART PLS 3 software was applied to test the
formulated hypotheses. In the results of the study, social responsibility emerged as
a driver for green purchasing and environmental performance. The purchase of
green products leads to improvements in environmental performance. In turn,
environmental performance was positively linked to business performance.
However, there were no direct relationships between business performance and two
predictor constructs, namely social responsibility and green purchasing.
The study confirms the importance of social responsibility and green purchasing as
antecedents of environmental and business performance in the construction
industry. The study also confirms the mediating role of environmental performance
on the relationship between business performance, social responsibility and green
purchasing. To overcome the prevailing competition and succeed in their dynamic
industry, construction SMEs could identify and create specific interventions for
improving these two individual predictor factors.
Primary Language | English |
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Journal Section | Research Article |
Authors | |
Publication Date | December 31, 2018 |
Published in Issue | Year 2018 Volume: 10 Issue: 2 |