1. Introduction
In recent years, significant changes in customer demand, technological innovation, and market competition have demanded worldwide sectors to embrace novel business modifications. The increasing competition has called the world’s corporate industries to redesign their business processes and practices through sustainable adoptions. The Pakistani manufacturing sector is a prime contributor to the world’s economy. Even though it plays a fundamental role in economic development, the Pakistan manufacturing industry has significantly wagered the world’s eco-system [
1,
2].
The attention to sustainable manufacturing has grown exponentially over the last decades. Today, achieving sustainability has become the prime priority of firms, with the world’s largest industries reporting an increase in their environmental footprints. However, despite the increasing role of sustainable manufacturing practices, history reveals that fewer organizations have realized the need for sustainable practices in the context of the Pakistani manufacturing industry [
3]. The circular economy has gained considerable popularity among industrialists over the past years because of its profound environmental and social benefits. However, limited attention has been provided to its implementation in the context of emerging economies, such as Pakistan. The circular economy helps the country to maximize the firms’ manufacturing practices by producing and maintaining sustainable practices. In Pakistan’s manufacturing industry, sustainable practices are still in their infancy stage. Given the scenario, this rising gap proposes the Pakistani manufacturing industry to enfold the idea of green practices ensuring the firms’ stability [
4]. The prior literature demands organizations to become more efficient in adopting sustainable alternatives to gain ecological success (e.g., green innovations) [
5].
Concurringly, this progressing need for sustainable practices has essentially lead to global industries adopting tangible resources to stay ahead in the competitive market. Operational agility involves redefining the firms’ processes, thus gaining a superior market position [
6]. It plays a strategic role in responding to external changes. It fosters the company’s operations, therefore swiftly handling business changes with dexterity [
7]. Interestingly, some agility definitions are based on operations, but others are expressed in terms of implementation. Given the explanation, the study shows that customer agility encourages organizations to make decisions to fulfill customer needs [
6]. Customer agility becoming the priority has caused organizations to deal with the increasing market dynamics, thus fostering manufacturing practices [
8]. Indeed, for manufacturing sustainability to meet the customer needs also requires building the organization–supplier relationship to enhance the firms’ agilities. In this regard, partnering agility allows firms to leverage the supplier’s knowledge, assets, and capabilities [
6], thus colossally achieving sustainable practices. Strategic partnering enhances the supply chain flow, causing companies to resolve and manage unexpected market disturbances [
9].
Presently, green procurement has gained popularity in dealing with emerging disturbances. Green procurement manufacturing enables organizations to think positively. It makes the suppliers’ products, designs, materials, and knowledge benefit the firms’ operations [
10]. This greener concept encourages companies to reduce environmental waste, pollution, and emissions, thereby contributing to sustainable manufacturing [
11]. Indeed, in recent years, this green concept footing in the manufacturing industry has led to an increase in the practices of adopting eco-friendly innovations. Hence, in this regard, the immense usefulness of big data in the manufacturing industry has brought new business opportunities for firms [
12]. The big data capabilities have enabled organizations to manifest from green logistics and procurement. In particular, it has become the key driver of the greener revolution. As big data becomes popular in academia, organizations are massively taking over new ways of driving the manufacturing supply chain flow [
13].
Even though the Pakistani manufacturing industry plays a critical role in the world’s economy, Pakistan is still in its initial stage of sustainability. Due to this gap, this paper discusses the impact of the organizational agility approaches (i.e., operational, customer, partnership) on sustainable manufacturing practices. Additionally, the study highlights the mediating role of green procurement and moderation of the big data nexus to green procurement and sustainable manufacturing practices.
Significantly, in addressing the critiques of the previous articles, this study includes the various stakeholders (e.g., customers and suppliers) with the newly proposed phenomenon of green procurement and big data analytics. It is a unique contribution that improves the understanding of agility and sustainable practices by exploring organizational agility dimensions. However, to our knowledge, this is the first study that widens the scope of the topic by highlighting, mediating, and moderating the role of green procurement and big data analytics in the context of Pakistan. As the previous literature shows that Pakistan’s manufacturing industry has emerged in fewer areas of sustainability, the study suggests that organizations must adopt green initiatives to enjoy the benefit of sustainable practices. Altogether, this study helps organizations find answers to the previous critiques. It makes the practitioners understand the increasing impact of agility on sustainable practices. The world’s manufacturing industries are redefining their systems to deal with market complexities. Hence, the benefit driven by these unique philosophies provides implications for the manufacturing staff to all the stakeholders.
4. Results
Table 1 shows the study’s reliability and validity analysis. The findings demonstrate that the first standardized factor loadings for all 35 items were more than 0.6, which ranged from 0.658 (for RBD_3) to 0.809 (for PA_3) [
57]. We used average variance extracted (AVE), construct reliability (CR), and Cronbach’s alpha to assess the reliability.
Table 1 shows that the AVE value of all the variables was greater than 0.5, which is considered a cut-off value [
58]. AVE values ranged between 0.526 (role of big data) and 0.579 (customer agility). The Cronbach’s Alpha value ranged between 0.817 (role of big data) and 0.904 (sustainable manufacturing practices).
Figure 2 shows the results of the measurement model. The circle shape represents the latent constructs, while rectangle shapes show the values of items. Cronbach alpha’s value is represented inside the latent construct.
Table 2 presents discriminant validity analysis results and the variables’ interrelationships. All the study variable values are within range, and variables are correlated with each other.
Kock [
59] suggested that variance influence factor (VIF) value should be less than 3.3. Therefore, that study model can be considered free of common method bias. In the current study, all variable VIF values are less than 3.3 (see
Table 3).
Table 4 represents the results of direct hypothesis testing. All the hypotheses presented in
Table 4 were accepted because the
p-values were less than 0.05. Hypothesis H1 states a significant relationship exists between operational agility and sustainable manufacturing practices; the t-value and
p-value of operational agility in predicting sustainable manufacturing practices were 4.016 and less than 0.05, respectively. Therefore, H1 was accepted. Hypothesis H2 states that there is a significant relationship between operational agility and green procurement; the t-value and
p-value of operational agility and green procurement were 3.908 and less than 0.05, respectively. Therefore, H2 was accepted.
Hypothesis H3 states there is a significant relationship between customer agility and sustainable manufacturing practices. The t-value and p-value of customer agility and sustainable manufacturing practices were 0.185 and less than 0.05, respectively. Therefore, H3 was accepted. Hypothesis H4 states there is a significant relationship between customer agility and green procurement; the t-value and p-value of customer agility and green procurement were 0.296 and less than 0.05, respectively. Therefore, H4 was accepted.
Hypothesis H5 states there is a significant relationship between partnering agility and sustainable manufacturing practices; the t-value and p-value of environmental passion and firm performance were 4.130 and less than 0.05, respectively. Therefore, H5 was accepted. Hypothesis H6 states that there is a significant relationship between partnering agility and green procurement, while hypothesis H7 states green procurement has a positive and significant effect on sustainable manufacturing practices. Hypotheses H6 and H7 were accepted in this study.
Table 5 illustrates mediation results. All the mediating paths were significant because the
p-values were less than 0.05. Hence, hypotheses H7(a), H7(b), and H7(c) were accepted. H5(a) shows the relationship between operational agility and sustainable manufacturing practices mediated by green procurement. Bootstrapping results showed that the indirect effect of operational agility on sustainable manufacturing practices mediated by green procurement was significant at 0.001 level; β = 0.050, T-value = 2.084,
p < 0.001. Therefore, H7(a) was accepted in this study. H7(b) shows the relationship between customer agility and sustainable manufacturing practices mediated by green procurement. Bootstrapping results showed the indirect effect of customer agility on sustainable manufacturing practices mediated by green procurement was significant at 0.001 level; β = 0.058, T-value = 2.073,
p < 0.001. Hence, H7(b) was accepted in this study.
H7(c) shows the relationship between partnering agility and sustainable manufacturing practices mediated by green procurement. Bootstrapping results showed the indirect effect of partnering agility on sustainable manufacturing practices mediated by partnering procurement was significant at 0.001 level; β = 0.056, T-value = 2.279, p < 0.001. Hence, H7(c) was accepted in this study.
Figure 3 signifies the results of the path analysis between study variables. The path value between operational agility and green procurement is 0.253. Partnering agility and green procurement path relationship value are 0.284.
Figure 3 shows a significant path relationship between study variables.
As shown in
Table 6, the interaction term of the role of big data in predicting green procurement and sustainable manufacturing practices was statistically significant at 0.05 level; β = 0.118, T-value = 2.251,
p < 0.01.
Bootstrapping results indicate the effect of big data’s role on sustainable manufacturing practices is positively significant and strong in the high level of green procurement (+1 Std Dev, β = 0. 0.633; error = 0.070, 95% confidence interval CI is 0.496 and 0.770). The 95% boot CI bias corrected did not straddle a 0 in between, indicating a significant effect from the role of big data on sustainable manufacturing practices in all three high, medium, and low levels of green procurement as moderating variables (see
Figure 4).
5. Discussion
Organizational agility is an integral part of the business process. The literature concludes its distinctive capabilities have made organizations adopt sustainable practices. The organization’s prime goal is to satisfy the stakeholders’ needs. Organizational agility enables the stakeholders (i.e., customers and suppliers) to contribute toward firms’ sustainable practices. As a result, today’s industries have increasingly relied on environmentally friendly innovations and green industrial procurement.
The previous studies reveal the organizational agility entailing the market changes demands organizational efficiency, service, and effectiveness. Pakistani manufacturing companies are less agile due to the lack of sustainable practices. The successful implementation of sustainable manufacturing practices leads to green innovation, reduced waste, environmental awareness, and improved operations.
In recent years, manufacturing companies have considered their survival by utilizing the concept of organizational agility in business areas. Organizational agility is an essential element ensuring the firms’ long–term practices. Adapting to the new environment requires firms to adapt to changing market demands. In this regard, developing operational agility has become a crucial phenomenon, inspiring firms to gain sustainable practices. Wamba et al. [
60] stated that operational agility is a firm’s strategic capability that makes the company respond to market changes by ensuring sustainable practices [
61]. In manufacturing, it is a view as the most significant construct, enhancing the firms’ sustainable performances and green purchasing [
62]. In the same vein, customer agility also plays an integral role in improving business practices. The organizations’ prime goals are to satisfy the stakeholders’ needs [
63]. Hence, today, the dynamic capability of customer agility has made organizations move to a sustainable and greener business model. Greenness plays an exemplary role in satisfying consumer needs. According to Devayani et al. [
25]), customers are well aware of the importance of green products. Indeed, the literature states this rise in customer needs motivates manufacturers to deliver green products as their priority [
64]. Hence, compared with the previous literature, our analysis surprisingly shows a positive relationship between operational and customer agility with sustainable manufacturing practices and green procurement (i.e., H1, H2, H3, and H4).
Moreover, partnering agility has also become a strategic tool, accelerating market responsiveness and product delivery [
22]. According to Tarigan [
65], partnering agility increases the firms’ sustainable business model, thereby relying on the partners’ capabilities to produce green products. Partnering agility is a profound concept that involves not only the production of green products but also the selection of eco-friendly suppliers. This close relationship between the supplier and the manufacturer increases trust, reduces transaction costs, and increases firm efficiencies, thus promoting the development of both sides. Indeed, our results also support this concept by proving partnering agility improves manufacturing practices through eco-friendly suppliers, materials, and production [
66]. Altogether, our study confirms the positive relationship between partnering agility with sustainable practices and green procurement (e.g., H5 and H6).
Significantly, today, state-of-the-art eco-logistics have made organizations implement green information systems to ensure sustainability. The efforts for green procurement have transformed supply chain practices, thereby colossally reducing the unsustainable effect of climate change. Green procurement is a gateway to sustainable manufacturing practices. It is a prominent boundary for manufacturing businesses that helps the firms incorporate environmental factors into firm policies, procedures, and plans. Traditionally, purchasing decisions were derived from the manufacturing costs and delivery [
67], but now, green procurement has taken this phenomenon beyond this criteria to environmental well-being [
68]. However, in recent years, green procurement has received considerable attention from the world’s dominant industries [
69]. Green procurement has become the best practice that has reduced the firms’ discrepancies, thus enhancing their operations and customer needs [
36]. Realizing the significance of green procurement, firms have maximized their relationships with their stakeholders (e.g., suppliers), coordinating the purchasing of green products and services [
70]. Green procurement, indeed, has become today’s need for manufacturers. Laying the foundation of development, it has played a fundamental role in business sustainability practices [
33]. Hence, in line with the study findings, we concluded that green procurement strongly mediates the relationship between a strong relationship with the firms’ operational, customer, and partnering agility and sustainable practices (i.e., H7, H7(a), H7(b), and H7(c)).
In addition, previous research shows the significance of big data has also powered manufacturing operations and activities [
71]. Our study supporting the previous research confirms big data have increased the firms’ green operations, thus facilitating sustainable manufacturing practices [
72]. Significantly, based on our analysis, we concluded a positive moderating role of the big data nexus to green procurement and sustainable manufacturing practices. Altogether, our study showed positive results, potentially supporting all the assumptions made in the previous literature.
Theoretical and Managerial Implications
The study contributes to the classical organizational theory by emphasizing and restoring the organization according to the goals, objectives, and more importantly, the needs of the customers. Organizational agility focuses more on the interaction of knowledge workers and the processes and active collaboration for achieving value and its early and continuous delivery to the customers. Likewise, organizational agility helps in adaptive planning, iterative replanning for value delivery, and customer engagement. The most important premise of agility is process control in a safe environment through simplicity in processes and operations. Lastly, the study added to the knowledge management theory by focusing on organizational resources, their man-agreement, utilization, and optimization.
The study outcomes are also beneficial for managers and decision-makers. The study found that organizational agility has gained more popularity in the dynamic world. Therefore, organizations must twist their operations and projects according to the needs and requirements of the market and customers’ demands. It improves flexibility, pragmatism, dynamism, adoption, and absorption, bringing optimization to the processes and reducing costs and wastage. These processes lead to lean management, attract customers, and gain above-average returns, rapport, and image. Organizations can have a good picture of the discrepancies and correct them on time, avoiding too many organizational losses. These also lead to organizational sustainability, resilience, and flexibility. The more important concept which came out in the study is organizational agility creates a focused environment where all the required resources are collocated for the desired operations, optimal utilization of the sources, and most importantly, keeping the customer in the loop. This further leads to the development of customer knowledge bases and bolsters effectiveness, efficiency, and organizational performance.
Moreover, organizational agility strives for corporate sustainability performance, where motivations and drivers are aligned with customers’ needs, government regulations, enterprise environmental factors, and organizational process assets and goals. Therefore, managers should pay more attention to the social, environmental, and governance factors, which directly and indirectly lead to cost and waste reduction, performance improvement, sustainability, maintainability, and organizational development. Hence, agility in the dynamic business world can provide capability, flexibility, and innovation.