Antecedents and Consequences of Procurement Managers' Willingness to Pay for Sustainability

This research paper examines the antecedents and consequences of procurement managers' willingness to pay (WTP) for sustainability within a B2B context. The authors develop a multi-level framework to analyze WTP, testing it with a sample of 372 procurement managers from various sectors and countries through partial least squares structural equation modeling. The findings indicate that individual values and institutional pressures directly influence WTP, while ethical organizational culture has an indirect effect. Additionally, while procurement managers' competencies enhance sustainability in procurement, they do not significantly affect WTP. The study reveals that WTP for sustainability positively impacts procurement performance, which is linked to improved organizational performance. The paper contributes to the literature on operations management and sustainability, providing empirical evidence on the critical role of procurement managers in promoting sustainability throughout the supply chain. It also offers practical implications for businesses and policymakers regarding sustainable procurement practices.