Optimizing Procurement Strategies in the Renewable Energy Sector: A Case Study of Solar Panel Manufacturers

Thesis Abstract

The rapid expansion of the renewable energy sector, particularly in solar power, has underscored the critical importance of efficient procurement strategies for solar panel manufacturers to enhance supply chain resilience, reduce costs, and support sustainable growth. Despite the sector’s growth, procurement practices remain fragmented, often leading to inefficiencies, supply shortages, and increased operational costs, which hinder the sector's potential for scalability and competitiveness. This study aims to optimize procurement strategies within solar panel manufacturing firms by identifying critical success factors, drivers, and barriers influencing procurement performance, with the overarching goal of developing a tailored procurement framework conducive to the unique dynamics of the renewable energy industry. The specific objectives include (1) to evaluate existing procurement practices among solar panel manufacturers; (2) to identify key factors influencing procurement efficiency; (3) to examine the impact of procurement strategies on supply chain resilience; (4) to develop a comprehensive procurement optimization model; and (5) to recommend best practices for strategic procurement in the renewable energy sector. Guided by the Resource-Based View (RBV) and the Transaction Cost Economics (TCE) theories, the study explores how internal capabilities and cost structures influence procurement decisions and efficiencies within the industry. Employing a mixed-method research design, the study gathers quantitative data through structured questionnaires from a stratified random sample of 150 procurement managers across major solar panel manufacturing firms in the region, complemented by qualitative insights obtained via semi-structured interviews with 15 senior supply chain executives. The questionnaire items are validated through content and construct validity tests, and the reliability is confirmed via Cronbach’s alpha coefficients exceeding 0.85. Data analysis involves descriptive statistics, exploratory factor analysis (EFA), and multiple regression analysis to identify significant predictors of procurement efficiency, while thematic analysis is used to interpret qualitative data. The study hypothesizes that strategic supplier relationships, automation of procurement processes, and risk management practices positively impact procurement performance, and that the integration of innovative procurement models significantly enhances supply chain resilience. Results are expected to demonstrate that firms employing integrated procurement frameworks with advanced digital tools and strategic supplier partnerships experience superior cost reductions and lead times, corroborating the applicability of RBV and TCE in guiding procurement reforms in the renewable energy context. This research contributes to academic literature by elucidating the complex relationship between procurement strategies and supply chain resilience in renewable energy manufacturing, filling existing gaps pertaining to sector-specific procurement frameworks. The proposed procurement optimization model provides a practical tool for firms aiming to enhance operational efficiency and competitive advantage, while also informing policymakers seeking to foster robust solar manufacturing ecosystems. The main conclusion emphasizes that adopting a strategic, technology-enabled, and collaborative procurement approach significantly enhances the efficiency and resilience of solar panel supply chains. Recommendations include the adoption of digital procurement systems, strengthening supplier relationships through long-term partnerships, and integrating risk management practices tailored to renewable energy supply chains. The study further advocates for continuous capacity building and policy support to facilitate the transition toward more dynamic and resilient procurement practices, ensuring sustainable growth of the renewable energy industry. Suggestions for future research involve longitudinal studies to measure the long-term impacts of procurement reforms and comparative analyses across different geographic regions to generalize findings.