Impact of Digitalization on Process Optimization and Decision-Making towards Sustainability: The Moderating Role of Environmental Regulation

Yixuan Peng, Sayed Fayaz Ahmad (), Muhammad Irshad, Muna Al-Razgan, Yasser A. Ali and Emad Marous Awwad
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Yixuan Peng: School of Law, Huazhong University of Science and Technology, Wuhan 430074, China
Sayed Fayaz Ahmad: Department of Engineering Management, Institute of Business Management, Karachi 74000, Pakistan
Muhammad Irshad: Department of Management Sciences, University of Gwadar, Gwadar 91200, Pakistan
Muna Al-Razgan: Department of Software Engineering, College of Computer and Information Sciences, King Saud University, Riyadh 11421, Saudi Arabia
Yasser A. Ali: Department of Information System, College of Computer and Information Sciences, King Saud University, Riyadh 11421, Saudi Arabia
Emad Marous Awwad: Electrical Engineering Department, College of Engineering, King Saud University, Riyadh 11421, Saudi Arabia

Sustainability, 2023, vol. 15, issue 20, 1-23

Abstract: Digitalization has brought a significant improvement in process optimization and decision-making processes, in particular in pursuing the goal of sustainability. This study examines how digitalization has affected process optimization and decision-making towards sustainability, focusing on Pakistan’s manufacturing sector. This study also examines the moderating role of environmental regulations between digitalization and sustainable practices. This study is based on quantitative methodology. Purposive sampling was used to gather primary data from 554 managers and engineers working in manufacturing industries in Pakistan through a closed-ended questionnaire. Smart PLS was used for data analysis. The findings show digitalization’s positive and significant influence on process optimization and decision-making. The results also show that environmental regulations have a significant moderating effect on the digitalization of processes and decision-making towards sustainability practices. The findings provide a guideline for industries, decision-makers, and researchers for developing strategies that effectively use digitalization for sustainability and assist in achieving the Sustainable Development Goals (SGD-9, SGD-11, SGD-12, and SGD-13).

Keywords: digital transformation; environmental regulation; process optimization and decision making; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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