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Does Green Public Procurement lead to Life Cycle Costing (LCC) adoption?

De Giacomo, MR; Testa, F; Iraldo, F; Formentini, M; (2019) Does Green Public Procurement lead to Life Cycle Costing (LCC) adoption? Journal of Purchasing and Supply Management , 25 (3) , Article 100500. 10.1016/j.pursup.2018.05.001. Green open access

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Abstract

Life Cycle Costing (LCC) is rarely used in public procurement and public institutions have yet to fully understand its potential value for sustainable procurement. The new European Directive on Public Procurement is, however, designed to position LCC as central to sustainable sourcing. Although previous studies have identified positive correlations between Green Public Procurement Policies (GPP) and LCC, it is still unclear how public institutions can further adopt LCC practices by leveraging their experience of green sourcing. In this study an organizational learning theoretical perspective is taken to investigate the circumstances under which public administrations’ experience of GPP – considered as a way of integrating the dimension of environmental sustainability into the sourcing process – stimulates their LCC learning and capabilities – considered as a way to include the sustainability economic dimension. The goal is to understand if the adoption of GPP can stimulate the internalisation of LCC in public tenders. A multinomial logistic regression was conducted using a sample of 120 public administrations located in different countries. The results show that experience of GPP stimulates the internalisation of LCC at a public level, but only under specific conditions. The study contributes to the Sustainable Supply Management literature, being one of the first studies in the field adopting an organizational learning theoretical lens to review the role of experience as significant opportunity to develop capabilities. It also contributes to the organizational learning theory, by confirming that experience can aid learning but only in specific environmental contexts.

Type: Article
Title: Does Green Public Procurement lead to Life Cycle Costing (LCC) adoption?
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.pursup.2018.05.001
Publisher version: http://doi.org/10.1016/j.pursup.2018.05.001
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Life Cycle Costing in the public sector, Green Public Procurement, Organizational Learning, Sustainable Supply Management
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources
URI: https://discovery.ucl.ac.uk/id/eprint/10050184
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