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

Author

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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)

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).

Suggested Citation

  • Yixuan Peng & Sayed Fayaz Ahmad & Muhammad Irshad & Muna Al-Razgan & Yasser A. Ali & Emad Marous Awwad, 2023. "Impact of Digitalization on Process Optimization and Decision-Making towards Sustainability: The Moderating Role of Environmental Regulation," Sustainability, MDPI, vol. 15(20), pages 1-23, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:20:p:15156-:d:1265251
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