Sustainable Transport Procurement: An Internal Governance Perspective

Abstract

This study examines how multinational enterprises (MNEs) manage sustainable transport procurement from an internal governance perspective. Increasing regulatory and institutional pressures, such as the CSRD, have intensified the need for decarbonization in transport activities (Scope 3). Existing research has primarily focused on external drivers and technological transitions, paying limited attention to internal organizational dynamics on the demand side. Addressing this gap, this study investigates how internal governance structures shape decision making and how MNEs manage persistent tensions between cost-efficiency and sustainability. Adopting an explanatory sequential mixed-methods design, the study finds that while sustainability is formally recognized due to institutional pressure, its practical influence is constrained by a "governance filter" that prioritizes operational reliability and cost control. The findings suggest that the main challenge in sustainable transport procurement is not the absence of sustainability awareness, but the weak operationalization of sustainability within internal governance systems. The study contributes to the field by shifting the focus from external pressures to internal organizational dynamics, conceptualizing the core challenge as a structural governance paradox where expanded accountability meets fragmented internal control.