Green Purchasing Adoption: Effect of Regulation, Corporate Factor and Supplier in Malaysian Construction Companies

The construction industry in Malaysia faces increasing pressure to adopt sustainable practices due to its high energy consumption and significant greenhouse gas emissions. Green purchasing (GP), defined as the purchasing of goods and services that minimise environmental impact through low-carbon, low-waste, and energy-efficient principles, is a critical strategy for reducing the sector’s ecological footprint. However, the industry’s limited adoption of green purchasing and the dominance of unsustainable building practices continue to pose challenges. This study investigates the influence of government regulations, corporate factors, and material suppliers on the adoption of green purchasing among Malaysian construction firms. A cross-sectional survey was conducted with 187 (G7) contractor companies registered with the Construction Industry Development Board (CIDB). Data were analysed using partial least squares structural equation modelling (PLS-SEM). The results confirm that government regulation (β = 0.148, p < 0.05), corporate factors (β = 0.265, p < 0.01), and material suppliers (β = 0.405, p < 0.001) each have a positive and significant effect on green purchasing adoption, with supplier influence showing the strongest impact. These findings highlight the importance of establishing supportive regulatory frameworks, fostering internal corporate commitment, and strengthening long-term supplier partnerships to drive sustainability in the construction sector. The study contributes to the understanding of green purchasing adoption in developing countries and offers practical insights for policymakers and industry leaders seeking to align construction procurement with national sustainability goals.