Achieving sustainable performance with Quality 4.0: the role of green organizational orientation

Fareena Nadeem and Atif Hussain

American Journal of Business, 2026, vol. 41, issue 3, 117-135

Abstract: PurposeAs manufacturing organizations have been increasingly adopting digital technologies to manage quality, understanding the strategic role of Quality 4.0 (Q4.0) in achieving other organizational outcomes such as sustainability, becomes essential. This study examines the associations of Q4.0 and data-driven culture (DDC) with sustainable performance (SP), and the mediating roles of green organizational orientation (GOO) and Q4.0 in the relationship between DDC and SP among manufacturing organizations.Design/methodology/approachThis empirical study employed the Partial Least Squares Structural Equation Modeling technique for assessing the model using data collected from 121 manufacturing organizations in Pakistan.FindingsThe findings show that Q4.0 is positively associated with GOO and SP. Meanwhile, a strong DDC is positively associated with the implementation of Q4.0, environmentally responsible manufacturing practices and stronger SP. The results also indicate that Q4.0 and GOO mediate the relationship between DDC and SP.Research limitations/implicationsThe study's findings emphasize the importance of adopting a digital approach to quality and fostering a culture that promotes data use for achieving environmentally and socially responsible outcomes.Practical implicationsThe study offers significant insight for executives, managers and policymakers in navigating the challenges of embedding sustainability into manufacturing operations within developing economies. The significant indirect effect of DDC through GOO and the serial mediation through Q4.0 and GOO suggests that investments in digital technologies alone are insufficient to achieve sustainability outcomes unless they are embedded within complementary organizational processes and values.Social implicationsThis work provides insight into the demanding issue of sustainability, emphasizing how Q4.0 adoption involves optimizing processes and enhancing the quality of products and services to promote sustainability. The study offers significant insight for executives, managers and policymakers in navigating the challenges of embedding sustainability into manufacturing operations within developing economies. By demonstrating how Quality4.0 and DDC contribute to SP, the research provides a roadmap for aligning digital transformation efforts with environmental and operational objectives.Originality/valueUnlike previous studies on Q4.0, which have tended to theorize or test the direct impact of Q4.0 on SP, the current study proposes and tests a more comprehensive model by considering the combined effect of Q4.0 and data-favoring culture as well as the paths through which their joint impact leads to SP.

Keywords: Quality 4.0; Green organizational orientation; Green innovation; Green manufacturing practices; Data-driven culture; Sustainable performance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajbpps:ajb-04-2025-0072

DOI: 10.1108/AJB-04-2025-0072

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