Socially responsible procurement: a driver for supplier innovation in Tanzania

Abstract

Purpose This study aims to analyze the driving power of socially responsible procurement on supplier innovation. More specifically, the study analyzed supplier-driven innovation as a resultant of employee engagement, community benefits, health and safety and fair labor practices, in socially responsible procurement. Design/methodology/approach The study employed a survey approach using a sample of 70 respondents with the help of structured questionnaire for analysis by means of ordinal logistic regression. Findings The study established four social responsibility predictors with a positive and significant effect on supplier innovation. Specifically, using R2 values Nagelkerke = 0.888, fair labor practices was the strongest considered predictor (β = 1.770, p < 0.001) followed by employee engagement (β = 1.289, p = 0.004). Research limitations/implications This research was contextually anchored within one time data collection from one organization from the Tanzania dairy sector which limits generalization. Therefore, future studies should involve more than one industry along with longitudinal approaches being incorporated. Also, expanding dimensions of social responsibility like environmental sustainability and social inclusiveness should be included. Practical implications This research highlights the necessity of socially responsible procurement in contractual obligations. Also, practical actions to embrace supplier training and awarding incentives to socially innovative suppliers are of key stake. Originality/value These research findings enlighten how Stakeholder's theory is applied in socially responsible procurement practices for supplier's innovation. Also, the study underpins the relevancy of Sustainable Development Goal 12 of United Nations in the procurement practices of Tanzania as a developing nation.