Research Proposal

UNIVERSITY OF THE SOUTHERN CARIBBEAN
Andrews University Extension & Affirmation Programme
P.O. Box 175, Port of Spain,
Trinidad. W.I.

Research Proposal

An Assignment
Prepared in Partial Fulfillment
For the Requirements of the Course
MBA699:Thesis writing

INSTRUCTOR:
Dr. Chesney

By
Lorenzo Kenswil

7/14/2013

Approval_________________

Title Page

Sustainable (Green) procurements as tool for assisting Staatsolie with its vision 2020 on leading the Sustainable development of Suriname’s energy sector

Table of Content

Introduction
With heightening awareness of environmental protection worldwide, the green trend towards conserving the Earth’s resources and protecting the environment is overwhelming, exerting pressure on corporations. The pressure accompanying globalization has prompted enterprises to improve their environmental performance (Zhu and Sarkis 2006). Consequently, corporations have shown growing concern for the environment. It is this increasing environmental concern that has gradually become part of the overall institutional culture and, in turn, has helped to re-focus the strategies of corporations.
Global warming, reductions in air quality, pollution of waterways and widespread loss of biodiversity are but a few examples of the types of environmental impact that can be attributed to the coordinated activity of organizations in a supply chain. Much of this arises from manufacturing organizations that continue to produce large amounts of unnecessary waste or emissions rather than investing in better technologies or practices to prevent its generation at the source.
The “green” component to supply chain management involves addressing the influence of supply chain management on the natural environment. Motivated by an environmentally-conscious mindset, it can also stem from a competitive motive within organizations (Hervani, Helms, and Sarkis 2005).
This research will be focusing on the case of Suriname with its only oil Company seeking to become the most sustainable company in the oil sector in Suriname. The success of Staatsolie’s attempt to become a development agent is attributed, in particular, to the company’s double strategy.
The internal part of this strategy, derived from the management vision and ideological commitment of the company’s leadership, was aimed at developing technological and management skills.

Statement of the problem
Most of the economies of the Caribbean region are ill- informed on the use of green technology for producing green products, as such they become unknowing contributors to Global warming. The Caribbean is an oasis of resources for green production, however, the human resource and other efficiencies needed for developing Green economies are deficient. With the theoretical and practical knowledge of Green Economics, governments and businesses of the region would be conscious of producing green sustainable products which do not leave carbon footprints. Looking at past developments with oil companies and the desctrution they bring. One would only see how important it is to have regulations and policies look at how to help Caribbean corporations develop a sense of urgency for a greener path.

Hypotheses

Hypothesis 1: Product Performance has a positive relationship with Green Procurement

Adoption.

Hypothesis 2: Purchasing Cost has a positive relationship with Green Procurement Adoption.

Hypothesis 3: An Organization’s Consideration of Environmental Issues has a positive relationship with Green Procurement Adoption.

Hypothesis 4: Trading partners have a positive relationship with Green Procurement Adoption.

Research Questions
How can green procurements help Staatsolie with achieving its vision and mission?
How will procurements expand Staatsolies reputation on growth performance, flexibilty and corporate social responsibilty?
How can it help secure the energy supply of Suriname and establish a solid position in the regional market ?

Aims and objectives of the study
To help reduce waste and improve energy conservation
To explore the efficient use of green technologies
To develop the Supply chain in accordance with Green Procurement standards to minimize the impact to footprint
Adapted the business strategy to the market

Theretical Frame work
The study reported in this paper will analyze the relationship between Green Supply Chain Management practices and factors such as environmental performance, financial performance and external stakeholders.
The independent variables will include in the model were Product Performance, Purchase Price, the Organization’s Environmental Consideration, and Trading Partners. The relationship of each of the independent variables to the dependent variable, the adoption of green procurement policies, was examined. For each relationship, there was an assumed hypothesis, indicating that there is a positive relationship between each independent variable and the dependent variable.
Chien and Shih (2007) explained that environmental performance is defined as “the environmental impact that the corporation’s activity has on the natural milieu.”
Environmental performance indicators consist of OPI (operative performance indicators) and MPI (management performance indicators). OPIs relate mainly to the consumption of materials, energy management, waste and emission production, and evaluation of real environmental aspects of organizations, whereas MPIs are mainly concerned with the administration’s efforts, measures, and contribution to the overall environmental management of the organization (Papadopoulos and Giama, 2007).

LITERATURE REVIEW
2.1 Description of Green Procurement Practices
Purchasers can improve the environmental performance of products and services by expressing environmental preferences through so called “green procurement”. Environmental purchasing is defined as activities that include the reduction, reuse and recycling of materials in the process of purchasing. Procurement or purchasing decisions will have an impact on the green supply chain through the purchase of materials that are either recyclable reusable, or have already been recycled (Sarkis, 2003). Green procurement is a solution for environmentally concerned and economically conservative businesses. It is the concept of acquiring a selection of products and services that minimizes negative environmental impacts. It requires a company or organization to carry out an assessment of the environmental consequences of a product at all the various stages of its lifecycle. This means considering the costs of securing raw materials, and manufacturing, transporting, storing, handling, using and disposing of the product. “Green” products reduce waste, improve energy efficiency, limit toxic byproducts, contain recycled content or are reusable.

Purpose of the Study
Environmentally preferable products and services are characterized as those having “a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.” This initiative is therefore the closest in concept to green procurement as discussed in this report. Taken from EPA (European Procurement Agency)
The stated purpose of these voluntary guides is to assist industry in ensuring that environmental marketing claims made for various products and services are not false or misleading.

Methodology
This research will use both primary and secondary data. Secondary data will be derived from existing research, journals, case studies, and articles on the internet. Secondary data will be used to understand what green procurement is, its applications in companies, and its benefits. The secondary data provided the idea of the framework to support the collection of primary data. Primary data will also be collected using questionnaires. Time span will be taking into account by researching the supply chain of Staatsolie.n.v

Sampling
Primary data collection requires proper sampling. Since the focus of the study is the Energy Industry, the sample will be drawn from energy companies in the region (Columbia and Brazil) that are ISO 14000 certified. The sample includes will also include companies that export to overseas markets and/or provide raw materials or parts to manufacturing companies, which then produce parts and finished products for the European Union and the United States.
The questionnaire focused on product performance, purchase price, the organization’s environmental engagement and trading partners. Survey samples will be selected randomly within the Oil company industry.
The research findings in this study will be reported in two parts. First, descriptive analysis is presented, and this is followed by inferential analysis. The descriptive analysis gives results as means and standard deviations. Inferential analysis is performed to test the hypothesized relationships between four independent variables and the adoption of green procurement.

Conclusion