Inclusive Society and Sustainability Studies (ISSUES)
Vol. 6 No. 1 (2026): August Volume

Environmental Competitiveness and Green Entrepreneurship: The Mediating Role of Generative Artificial Intelligence in Pakistan’s Manufacturing Sector

Muhammad Ahsan Iqbal (Rawalpindi Women University)
Asifa Muhammad Sabir (Sir Syed CASE Institute of Technology)
Hufza Iqbal (Rawalpindi Women University)



Article Info

Publish Date
17 Jun 2026

Abstract

Green entrepreneurship has emerged as a strategic response to growing environmental pressures and competitive dynamics in Pakistan's manufacturing sector. This study empirically investigates how environmental competitiveness influences green entrepreneurship, with generative artificial intelligence (Gen-AI) adoption serving as a mediating mechanism. Grounded in Resource Orchestration Theory (ROT), the research examines: (1) the direct effect of environmental competitiveness on green entrepreneurship, (2) the direct effect of environmental competitiveness on Gen-AI adoption, (3) the direct effect of Gen-AI adoption on green entrepreneurship, and (4) the mediating role of Gen-AI adoption in the relationship between environmental competitiveness and green entrepreneurship. A cross-sectional survey was conducted with 250 employees from manufacturing firms across Pakistan (response rate = 62.5%). Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4. Results indicate that environmental competitiveness positively and significantly influences both Gen-AI adoption (beta = 0.257, p < 0.001) and green entrepreneurship (beta = 0.178, p = 0.019), while Gen-AI adoption significantly predicts green entrepreneurship (beta = 0.216, p = 0.006). Mediation analysis confirms partial mediation by Gen-AI adoption (indirect effect beta = 0.055, p = 0.014). The study contributes theoretically by extending ROT to the digital sustainability context and practically by offering actionable guidance for managers and policymakers in emerging economies seeking to leverage AI-enabled green strategies. Islamic ethical principles, namely khilafah, amanah, and mizan, are discussed as a conceptual lens that contextualizes responsible AI adoption within an ethical stewardship framework.

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Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Inclusive Society and Sustainability Studies (ISSUES) is a transdisciplinary science journal. We encourage submission of the research in the area of : - Sustainable food access - Inclusive society : poverty, tourism, environmental and socio-economic approaches to sustainable development - ...