Key drivers of sustainable procurement in the oil and gas industry: Evidence from Namibia Corporation

Abstract

Background: Sustainable procurement is a crucial pillar of corporate governance and competitiveness, particularly in resource-constrained environments such as Namibia. Regardless of the rising interest in sustainability principles, the bulk of parastatals face difficulties in embedding environmental, social and economic considerations into internal procurement processes. Namibia Corporation (NAMCOR) exemplifies this challenge, where balancing cost efficiency, compliance and sustainability remains a complex task.
Objectives: This study aims to highlight and evaluate the key drivers influencing sustainable internal procurement at NAMCOR.
Method: An exploratory qualitative approach, interpretivist philosophy and case study design were adopted. Data were collected from 20 participants purposively selected from NAMCOR using semi-structured interview guide. Document analysis was also used to collect data, and thematic analysis was applied during data analysis.
Results: The results indicate that leadership commitment, corporate values, compliance with government policies, economic efficiency, employee competence, shareholder influence and supplier collaboration are the key factors of sustainable internal procurement. The adoption of sustainable practices is hampered by misaligned departmental priorities, weak sustainability awareness and inadequate monitoring mechanisms.
Conclusion: The study reveals that sustainable internal procurement needs a comprehensive strategy that combines governance, capacity building and digital technology. Stakeholder engagement and policy alignment will stimulate sustainability and organisational performance.
Contribution: This research enhances the understanding of sustainable procurement in Namibia. It provides a conceptual framework for adopting sustainability in procurement in the oil and gas industry. It offers practical guidance for corporate leaders who aim to align operational processes with sustainability objectives.