Sustainable Procurement Transformation in a Global Electronics Manufacturer

Thesis Abstract

This study investigates the drivers, processes, and outcomes of sustainable procurement transformation within a Global Electronics Manufacturer facing heightened regulatory scrutiny, resource volatility, and growing stakeholder expectations for ethical supply networks. The central problem addresses how large-scale electronics suppliers can systematically integrate environmental, social, and governance (ESG) criteria into procurement practices without compromising cost competitiveness or supply continuity. The aim is to determine how a structured transformation of procurement functions, underpinned by sustainability-driven governance, supplier collaboration, and digital analytics, influences supplier performance, risk exposure, and overall value creation. Specific objectives are to (1) map the current procurement maturity level across strategic sourcing, supplier risk management, and circular economy initiatives; (2) identify enablers and barriers to sustainability integration within supplier selection, contract management, and performance measurement; (3) develop and validate a sustainability transformation framework anchored in resource-based and institutional theory; (4) quantify relationships between sustainability practices and supplier performance metrics using regression analysis; and (5) generate actionable recommendations for scalable implementation across multinational production networks. The methodology adopts a mixed-methods, sequential explanatory design. The population consists of 18 global procurement offices, 72 tier-1 suppliers, and 9 internal stakeholder groups across manufacturing, logistics, compliance, and sustainability functions. A stratified random sample yields 24 key suppliers and 60 internal respondents, complemented by case-level data from three high-variance supplier categories (semiconductors, display modules, and electro-mechanical components). Data collection employs structured surveys (n=84 responses) measuring sustainability maturity, supplier collaboration, and contract governance, complemented by semi-structured interviews with 18 senior procurement managers and sustainability officers to capture contextual nuances. Document analysis of procurement policies, supplier codes of conduct, and ESG reports supplements primary data. Validity is enhanced through pilot testing, triangulation, and member checks; reliability is ensured with Cronbach’s alpha thresholds above 0.70 for multi-item scales. Analytical techniques include descriptive statistics and exploratory factor analysis to derive a 4-dimension sustainability maturity index, followed by multiple regression and hierarchical linear modeling to assess the impact of maturity and governance mechanisms on supplier performance (delivery reliability, defect rates, cost of non-compliance, and ESG scorecards). Thematic analysis of interview transcripts identifies emergent enablers and barriers, mapped to the proposed framework. Key expected findings indicate that higher sustainability maturity correlates strongly (p<0.01) with improved supplier on-time delivery, reduced non-conformances, and enhanced ESG performance, particularly where governance structures align incentives, risk management is integrated with supplier development, and digital procurement platforms enable real-time sustainability analytics. The study anticipates that supplier collaboration, joint product development for eco-design, and extended producer responsibility (EPR) initiatives will emerge as critical mediators of performance gains. It is expected that the conceptual framework—the Sustainable Procurement Transformation Framework (SPTF)—will demonstrate strong explanatory power (R-squared > 0.45) in explaining variance in supplier performance across categories, with moderating effects observed for geographical dispersion and supplier size. The contribution to knowledge comprises (1) a theory-informed transformation framework integrating resource-based and institutional theory with digital procurement analytics to guide sustainable procurement in global electronics supply chains; (2) empirical evidence on the causal pathways through which governance, collaboration, and capability development translate into measurable supplier performance improvements; and (3) practical, scalability-focused guidance for multinational electronics manufacturers seeking to operationalize ESG commitments in strategic sourcing, supplier development, and contract design. The study advances understanding of how large electronics firms balance sustainability ambitions with operational exigencies, providing a replicable methodology for assessing maturity and guiding transformative interventions. The main conclusion posits that a deliberate, data-driven procurement transformation—anchored by a sustainability maturity model, value-based governance, and cross-functional integration—enables tangible improvements in supplier performance and ESG outcomes without sacrificing cost or resilience. Recommendations include (a) instituting a phased maturity-building program with explicit ESG-related KPIs tied to supplier contracts and rewards, (b) expanding collaborative eco-design and supplier development initiatives with tiered support based on risk and strategic importance, (c) investing in digital platforms that consolidate ESG data with operational metrics for real-time decision-making, and (d) implementing periodic external assurance and internal audits to sustain compliance and continuous improvement across global supplier networks.