Exploring the effects of Industrial Digital Technology on Sustainable Firm’s Performance with a mediating role of Green Supply Chain Management Practices in FMCG Industry of Pakistan
Abstract
This study investigates how Industry 4.0 digital technologies contribute to Sustainable Firm Performance (SFP) in Pakistan’s FMCG manufacturing sector, emphasizing the mediating role of Green Supply Chain Management (GSCM) practices. Despite the global shift toward digital and sustainability-driven operations, empirical evidence from developing economies remains limited, particularly regarding how technological capabilities integrate with green practices to enhance triple-bottom-line performance. Addressing this gap, the study draws upon the Practice-Based View (PBV) and Information Processing Theory (IPT) to propose a comprehensive conceptual model. A structured survey was administered to FMCG manufacturing firms, and the data were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM).
The findings reveal that core Industry 4.0 technologies—such as IoT-enabled monitoring, big data analytics, AI-based decision systems, and blockchain-supported traceability—significantly strengthen multiple GSCM dimensions, including green design, green information systems, green procurement, internal resource development, and reverse logistics. However, green manufacturing did not exhibit a significant direct effect. The results further demonstrate that GSCM practices play an essential mediating role, indicating that digital technologies create sustainable value primarily through enhanced coordination, cleaner processes, and improved supply chain transparency. Sustainable Firm Performance showed strong positive effects on economic, environmental, and social outcomes, confirming its importance as an integrated measure of organizational sustainability and competitiveness.
Moreover, the mediation analysis highlights that governance design and structured process facilitation partially transmit the influence of digital technologies toward improved sustainability outcomes, reinforcing the need for effective governance mechanisms. Overall, the study provides valuable empirical evidence that digital transformation aligned with green supply chain strategies can significantly enhance long-term sustainability in resource-constrained developing economies. The findings offer meaningful guidance for managers, practitioners, and policymakers aiming to strengthen sustainable and digitally enabled supply chain ecosystems.
