Antecedents and Consequences of Willingness to Pay for Sustainable Procurement in Business-To-Business Context

Sustainable procurement is important to realize sustainable industrial development. However, most companies have not yet adopted sustainable procurement due to various reasons. Scholars argue that companies would be more enthusiastic to adopt sustainable practices if their customers would be willing to pay a premium price for sustainable products or services. A plethora of studies, therefore, have examined the willingness to pay for sustainable products in the business-to-consumer (B2C) contexts but more research is needed on this topic in business-to-business (B2B) contexts. We thus assessed what individual and organisational factors shape willingness to pay and whether sustainable procurement adoption is worthwhile for companies. We found that individual values of procurement managers and perceived institutional pressures shape their willingness to pay for sustainability. Furthermore, the confluence of this willingness to pay, past pay behaviour, and institutional pressures lead to sustainable procurement adoption which consequently improves the performance of their companies.