INNOVATION AND SUSTAINABILITY IN GREEN SUPPLY CHAIN PRACTICES: EXAMINING THE INFLUENCE OF REGULATORY DRIVERS IN PAKISTAN’S MANUFACTURING SECTOR

Abstract

This study investigates the impact of regulatory drivers on the adoption of green supply chain practices (GSCPs) in manufacturing companies in Pakistan. As global competitiveness rises and environmental concerns intensify, companies face mounting pressure to align their supply chain activities with sustainability principles. A qualitative research design, utilizing semi-structured interviews with managers and key stakeholders across various manufacturing sectors, including textiles, pharmaceuticals, and consumer goods, was employed to gather data. Thematic analysis was applied to identify shared perceptions, challenges, and opportunities related to regulatory influences on GSCP adoption.

The findings reveal that while regulatory drivers are generally recognized as an important catalyst for sustainability strategies, their perceived effectiveness is mixed. Participants highlighted that the lack of enforcement, inconsistent monitoring, and fragmented policy frameworks hinder the potential of regulations to instigate lasting change. Smaller companies often view environmental compliance as a cost burden with limited benefits, whereas larger companies, particularly those engaged in international markets, perceive regulations as a gateway to enhanced global competitiveness. Notably, proactive companies saw regulations as a driver of innovation, energy efficiency, and waste reduction, while reactive companies viewed them as a liability. Furthermore, the study identified a lack of institutional support and incentives, which hinder broader engagement with green practices. The study concludes that to facilitate meaningful green transitions in Pakistan's manufacturing sector, stronger enforcement, clearer guidelines, and the integration of financial and technical assistance mechanisms are essential.