Innovating public procurement for sustainability value creation across countries

Purpose The study explores the implications of sustainable public procurement (SPP) implementation in supranational settings, by investigating the processes, organizational innovations and beneficiaries of the value generated by a large Multilateral Development Bank (MDB) across countries. Design/methodology/approach Using action research (AR) to understand operational changes while informing SPP implementation, the study draws on data collected along 2-years through participatory observations, interviews and secondary data analysis. Findings The study identifies how and for whom the MDB creates sustainability value via SPP, and how SPP transforms its procurement function. Our findings reveal a dynamic relationship between key drivers (strategic alignment, SPP actions, sustainability performance) and shapers (countries’ governance, external stakeholders’ pressures, procurement professional capacities, market and supply chain readiness). These factors collectively influence who benefits from value creation and distribution in supranational settings. Misalignments among these elements affect the overall value-creation outcomes and beneficiaries and determine the change required to the MDB’s procurement function. Practical implications To maximize sustainability value creation, MDBs’ procurement experts shall foster internal and external collaborations, establish performance evaluation systems and adopt phased sustainability requirements to develop clients’ and markets’ readiness. Originality/value Applying stakeholder theory, the study develops a framework illustrating sustainability value creation in an underexplored organization, a MDB. The study highlights the implications of SPP implementation across countries, addressing the “home bias” in public procurement research. By employing AR, the study bridges the gap between research and practice, offering actionable insights for MDBs and similar supranational organizations.