Despite heightened interest in and increased urgency surrounding the adoption of green business initiatives, firms seem to suffer from a limited understanding of the prerequisites and profit potentials of green strategies. Our proposed theoretical model suggests that green purchasing asa unique firm capability must be built on internal organizational characteristics (i.e., top management commitment to environmental management, inter-functional coordination, and performance evaluation and reward systems), and that it eventually helps a firm obtain positive financial performance. We offer some research propositions about potential causal relationships among key constructs that can be empirically tested in future research. We conclude the current study with implications for both managers and researchers.

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