Manufacturing Sector Of Pakistan Research Articles

Impact of HRM Practices on Employee Retention: Moderating Role of Job Satisfaction

This study aims to explore the impact of compensation, training, and development (T&D), and working conditions on employee retention within the manufacturing sector of Pakistan, with a specific focus on the mediating role of job satisfaction. Employing a convenience sampling strategy, the research collected data from 382 employees across various manufacturing firms in Pakistan. Structural Equation Modeling (SEM) was conducted using Smart PLS software to analyze the data and test the proposed hypotheses. The findings of the study reveal that compensation, training and development, and working conditions have a direct and positive impact on employee retention. Moreover, the results highlight the significant mediating role of job satisfaction in the relationship between these organizational factors and employee retention. All direct and indirect hypotheses proposed in the study were accepted, confirming the mediating influence of job satisfaction and underscoring its critical role in enhancing employee retention within the manufacturing sector. While the study provides valuable insights, its reliance on convenience sampling and the focus on the manufacturing sector of Pakistan may limit the generalizability of the findings. Future research could employ a more diverse sampling strategy and explore other sectors to validate and extend the study's findings. The study offers practical guidance for industry practitioners and decision-makers, emphasizing the importance of fair compensation, effective training and development programs, and favorable working conditions in fostering job satisfaction and enhancing employee retention. Organizations are encouraged to adopt holistic approaches that consider these factors to nurture a satisfied and committed workforce. This research contributes to the existing literature by providing empirical evidence of the direct effects of compensation, training and development, and working conditions on employee retention, as well as the mediating role of job satisfaction, within the context of the manufacturing sector in Pakistan. The study's findings offer a nuanced understanding of the dynamics involved in employee retention strategies, serving as a valuable resource for both academic researchers and industry practitioners.

Investigating the supply chain agility–Innovation link: The role of organizational context

Previous literature provides ample analyses of the antecedents of supply chain agility, but the organizational context has generally been neglected. Setting up the right organizational context is important for dynamic capabilities such as supply chain agility, especially in turbulent times. In this research, we study organizational context from two aspects as antecedents of supply chain agility, i.e., a firm’s performance orientation context and its social orientation context. Based on the dynamic capabilities view, the literature on organizational context, supply chain agility, and innovation, we develop our hypotheses. We investigate the previously overlooked impact of supply chain agility on innovation performance, as we find that supply chain agility not only helps to prevent and repair short-term damage but also promotes innovation in the long term. We also consider the moderating role of the organization’s complementarity with its key suppliers in this relationship. Structural equation modeling is applied to investigate the proposed research hypotheses using lagged survey data with multiple respondents from the manufacturing sector in Pakistan.

Globalization, Oil Price and Manufacturing Output in Pakistan: A Fresh Insight Through ARDL Approach

The objectives of this study are to explore the fluctuation of oil prices impact on manufacturing sector of Pakistan. To check the asymmetric effects of real effective exchange rate on manufacturing sector of Pakistan. We Examined the role of gross capital formation as well as labor force in manufacturing sector of Pakistan and also discussed the globalization relationship with manufacturing sector of Pakistan. This enabled us to recommend the helpful policy to enhance capacity of manufacturing sector of Pakistan. Data is taken from World Development Indicator (WDI) time gap takes from 1995 to 2017 and analyzed through ARDL approach. The results indicated that Impact of manufacturing is negative effect on gross capital formation and positive impact with other variables.

Boardroom Alchemy: Unravelling the Debt and Agency Costs in Manufacturing Sector of Pakistan

The current study aims to investigate boardroom diversity and its varying characteristics by using agency theory to examine the effect of debt and agency costs in the manufacturing sector of Pakistan. Precisely, it seeks to examine how board size, independence, and gender diversity affect the financial matrices of a firm’s profitability. Therefore, the study utilized an imbalanced panel of 105 manufacturing companies that were listed on the Pakistan Stock Exchange (PSX) 2003 to 2022. Furthermore, the study utilized static and dynamic panel models to examine and evaluate the proposed hypotheses. The findings of this study indicated that there is a positive relationship between board size, gender diversity, and debt and agency costs for manufacturing enterprises in Pakistan. Conversely, it was observed that board independence has a negative impact on the debt and agency costs of firms. Future research can use experimental or longitudinal approaches, including varied businesses, to investigate qualitative research for deeper insights. Cross-cultural comparisons would support the findings. Consequently, this study highlighted the importance of exercising caution when evaluating the influence of board composition on debt and agency costs. The results of the study also prompted inquiries regarding the financial ramifications of initiatives aimed at promoting gender diversity.

The impact of green HR practices on employee proactive behaviour

Pakistan’s manufacturing industry is under a lot of pressure to deal with environmental issues such as carbon monoxide emissions, poisonous compounds, and manufacturing waste. Green HR practices are considered to be fundamental pillars and are considered to be crucial in the development and optimization of environmentally sustainable initiatives. Hence, the objective of this research is to analyze the effects of green HR practices implemented in the manufacturing sector of Pakistan on employees’ proactivity with regard to environmental issues. The data was acquired through the distribution of a survey questionnaire to manufacturing firms. The data was analyzed using SMART-PLS. The findings demonstrated that green HR practices have a substantial effect on the proactive behavior of employees. Additionally, the results indicated that organizational identification acts as a complementary mediator between green HR practices and the proactive behavior of employees in reducing environmental effects. Furthermore, it was discovered that proactive personality acted as a catalyst to enhance the impact of GHRM on the proactive behavior of employees with regard to environmental initiatives. Future research directions and managerial implications were also discussed.

Does employee engagement promote innovation? The Facilitators of innovative workplace behavior via mediation and moderation

The demonstration of innovative behaviour by employees plays a crucial role in enabling organisations to effectively respond and adapt to the rapidly evolving business landscape. There has been an increase in research aimed at identifying the factors that contribute to the progressive development of innovative capacity, as there has been a substantial rise in interest in the comprehension of innovation mechanisms. Drawing on self-determination theory, this study aims to investigate the effect of employee engagement on innovative work behavior. The mediating role of employee voice behavior was also explored. Additionally, this study examines the potential moderating impact of perceived distributive justice on the relationship between employee engagement and innovative work behavior. A quantitative study was undertaken using a sample size of 180 participants who were employed in the manufacturing sector of Pakistan. Partial least squares structural equation modelling (PLS-SEM) was used to analyze the results of the study. The results revealed that engaged employees are more likely to exhibit innovative behavior. Furthermore, employee voice was discovered to fully mediate the relationship between employee engagement and innovative behavior, as well as to have a significant influence on both employee engagement and innovative behavior. However, the findings did not support the hypothesis that perceived distributive justice moderates the association between employee engagement and innovative behavior. Future research directions and managerial implications were also mentioned.

Strategic Impact of Industry 4.0 and Big Data on Supply Chain Efficacy in Pakistani Manufacturing

The research aims to scrutinize the influence of Industry 4.0 indicators and Big Data Analytics in innovating and transforming supply chain processes in the manufacturing sector of Pakistan, highlighting how Industry 4.0 factors alter supply chain activities. This study was conducted within the manufacturing industry, specifically targeting employees from the automobile sector in Karachi, Pakistan. Data was collected through online Google Forms, utilizing a closed-ended questionnaire deployed on a Likert scale, to explore various independent variables and their impact on supply chain performance. Survey responses indicate that the variables—supply chain flexibility, supply chain agility, research and development, role of MIS, leadership style, and big data analytics—predominantly influence supply chain performance, albeit with one insignificant relationship noted between leadership style and supply chain performance. The research also affirms the significant mediating impact of supply chain performance indicators on organizational performance. The research may confront limitations related to its generalizability across varied industries and regions due to potential disparities in technological adoption and regulatory frameworks, and the exclusive focus on supply chain performance as the sole mediator might overlook alternative pathways through which the independent variables could influence organizational performance. The insights derived from this research could serve as a guide for managers and manufacturing organizations to comprehend the transformations invoked by Industry 4.0, offering a lens through which to perceive shifts in supply chain performance and activities. The study offers a pivotal examination of the evolution in supply chain practices induced by Industry 4.0 and Big Data Analytics within the context of Pakistan’s manufacturing arena, thereby providing a valuable resource for practitioners and academicians to understand and navigate the landscape of digitally transformed supply chains.

Responsible leadership and organisational citizenship behaviour for the environment: mediated by environmental corporate social responsibility

Purpose This study aims to use stewardship theory to investigate the effect of responsible leadership (RL) on organisational citizenship behaviour for the environment (OCBE) through the mediatory role of environmental corporate social responsibility (ECSR). Design/methodology/approach Data was collected from a sample of 224 individuals employed in the manufacturing sector of Pakistan. The study used partial least squares structural equation modelling to estimate the relationships within the model. Findings The findings indicate that RL positively impacts OCBE, and ECSR is a partial mediator that mediates the relationship between RL and OCBE. Practical implications This research offers novel perspectives for organisational leaders, highlighting the significance of RL quality for instilling OCBE among the employees of manufacturing sectors. Organisational leaders must prioritise ECSR in their CSR initiatives. Originality/value This study’s novelty lies in confirming the mediating role of ECSR to drive the positive impact of RL on OCBE through stewardship theory.

Managing Supply Chain Risk with the Integration of Internet of things in the manufacturing Sector of Pakistan

In the ever-evolving landscape of global trade and manufacturing, supply chain resilience has emerged as a vital concern for organizations operating in the manufacturing sector. This research study delves into the critical domain of managing supply chain risk through the integration of Internet of Things (IoT) technologies within the manufacturing sector of Pakistan. With the advent of Internet of Things, the manufacturing industry in Pakistan has witnessed transformative opportunities to enhance operational efficiency and mitigate supply chain vulnerabilities. This qualitative study engaged ten seasoned supply chain professionals through in-depth interviews to discern the multifaceted impact of IoT integration on risk management within the manufacturing sector. The results of this study, analyzed using thematic analysis within Nvivo software, illuminate the implications of using the Internet of Things in supply chain risk management, the aim is to understand how the Internet of things influences and impacts the supply chain risk management process, both internally and externally, and the resulting outcomes. The study is guided by the information processing theory and employs a methodology based on theory to investigate the information requirements and processing capabilities of supply chain risk management supported by the internet of things. The findings of the study reveal that the organizations involved experienced increased data availability, which led to improved process transparency and management. Supply chain risk management also showed enhancements across its various stages, including risk transparency, risk awareness, and risk strategies. These improvements provided a competitive advantage by aligning the information needs with the information processing capabilities. The study provides detailed insights into the structure of internet of things systems, main use cases, and the impact on the supply chain risk management process, offering valuable information for managers. It highlights the benefits of increased data availability, improved process transparency, and management, as well as the implications for personnel and potential barriers. The findings provide valuable insights for Supply chain managers and pave the way for further research in this area.

The alienated employee: The role of cyberloafing in coping with workplace incivility in manufacturing sector of Pakistan

Scholars have baptized to investigate the reasons behind cyberloafing of employees and means to condense it. In order to address the concern, the study is based on proposing a theoretical framework that explains the linkage between workplace incivility, work alienation and cyberloafing. We theorized that there is no significant impact of workplace incivility and work alienation on cyberloafing in the manufacturing sector of Pakistan. Further ahead, emotional exhaustion mediates the relationship between workplace incivility and cyberloafing and job stress mediates the relationship between work alienation and cyberloafing. Empirical validity of the research was established with the use of closed ended questionnaire from 300 employees working in the manufacturing sector of Karachi. Results proposed that there is no moderating effect of organizational commitment on emotional exhaustion and cyberloafing whereas psychological capital had no moderating effect between workplace incivility and cyberloafing.

Circular supply chain practices, big data implementation and firm performance: Mediating role of digital technology

AbstractThe business practices such as supply chains have been transformed significantly due to technological advancement and digitalization. It helps enhance organizational efficiency in consumption, production, and overall operation. Additionally, big data within the supply chain management process has considerably assisted businesses in gathering accurate product information, easily tracing a product, maintaining track of distribution cycles and delivering goods as quickly as possible. The research investigates the impact of the circular supply chain (CSC) and big data implementation on firm performance, specifically in the Pakistan Manufacturing Sector. Further, it has investigated digital technologies' mediating role in the firm's performance in the Pakistan manufacturing sector. The research was conducted using quantitative data from the questionnaire survey from 400 participants (i.e., firm managers) working in the Pakistan manufacturing sector. The data were analyzed using the structural equation modeling comprising confirmatory factor analysis and path analysis using SmartPLS. Findings show a negative and significant influence of CSC practices on firm performance in the manufacturing sector of Pakistan. On the contrary, big data implementation positively and significantly impacts the firms' performance. Further, the mediating role of digital technology over firm performance through CSC practices and big data implementation was also found to be positive and significant. The research has contributed to the present state of literature in different ways. First, the research presented the mediating role of digital technologies in the relationship between CSC and big data implementation and firm performance.

Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development

The study’s primary objective is to advance the environmental management research field by examining the relationship between corporate social responsibility (CSR), environmental and financial performance while considering the mediating effect of sustainable development and green innovation. In addition, the study also analyzes the moderating effect of green innovation actions and green innovation strategies. Employees in the manufacturing sector in Pakistan completed a self-administered survey. Data gathered from 497 employees was analyzed using the structural analysis. The study results show that corporate social responsibility to the environment (CSREM), corporate social responsibility to employees (CSREM), to the community (CSRCO), and to the consumers (CSRCO) positively influences environmental performance (EVP) and financial performance (FP). Environmental sustainable development (ESD) and green innovation (GI) mediate the relationship between CSR, environmental, and firm financial performance. Green innovation strategies (GINS) and green innovation actions (GINAs) moderate the relationship between a firm’s environmental and financial aspects. The study deepens the understanding of CSR through an integrated model of mediator and moderator variables. It attempts to boost the firms’ performance (i.e., environmental, and financial) by applying the concept of green innovation and sustainable development. This study brings significant results for manufacturing firms, managers, entrepreneurs, policymakers, practitioners, employees, and other stakeholders. The study’s outcomes make the stakeholders adopt CSR consideration to achieve ecological and financial harmony in developing economies.

Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

Purpose: This study examines the impact of trade liberalization (TL) on female labor force participation (FLFP) during the trade regime period in Pakistan, using sectoral panel data of the manufacturing sector for the period of 1990-2005. Design/Methodology/Approach: We employed panel fixed effects (FEM) and Instrumental-variable (IV) regression models for empirical analysis. Findings: Our study reveals that trade liberalization and FLFP are associated. Trade liberalization increases FLFP in the manufacturing sector. The results of both measures of FLFP (i.e., the share of female employment, and female-to-male ratio) verify each other findings. Our findings are robust to the inclusion of various control variables. Furthermore, our IV analysis also confirms that liberalization has given rise to female employment in the manufacturing sector. Our policy implication is that the government should liberalize trade sectors that can help to enhance FLFP. Originality/Value: This study adds to the existing literature by exploring the association between TL and FLFP in the manufacturing sector of Pakistan by utilizing a better proxy of reductions in import tariffs for TL. The reduction of import tariffs is a policy-based measure that captures the pure impacts of trade policy as compared to outcome-based measures (i.e., trade ratios). We also consider the whole trade regime as a sample period (i.e., from 1990-2005) to examine the core impacts of the trade regime, as import tariffs drastically reduced during this period. Furthermore, we use two measures of FLFP for the analysis, i.e., the share of female employment, and the female-to-male ratio. Lastly, our use of sectoral panel data strengthens the empirical analysis.

Identifying the critical success practices of sustainability and their implementation in the manufacturing sector of Pakistan: an exploratory factor analysis

The concept of sustainability is increasingly discussed in organizations whether they are large firms or SMEs as a sign of environmental awareness of consumer knowledge of product quality. This study provides a better understanding of how sustainability practices are being implemented in the manufacturing sector which is one of the most promising sectors in the world. The aim of this paper is to identify the critical success factors of sustainability and their implementation in the manufacturing industries. The data was collected through a questionnaire survey from the manufacturing industries of Karachi and Hyderabad Sindh Pakistan. In-depth information about the sustainability concept in the company was collected by using the questionnaire survey technique. The data was analysed by using descriptive and exploratory factor analysis. The study also developed a conceptual framework that helps in improving the business, sustainability, and financial performance. This framework consists of three practices (economic, environmental and social) with twelve sub-practices (Cost management, research and development, limited landfilling, Environmental pollution, product lifecycle, resource consumption, public welfare, industrial health and safety, and stakeholder) of sustainability, these practices aim is to bring effective performance in the manufacturing industries of Pakistan. The proposed framework of this study will give an important vision that will enable Pakistani industries to get benefit from the sustainability implementation. Moreover, this study will also provide an understanding of how sustainability would help manufacturing industries to obtain a competitive advantage in the global marketplace. The finding of this study would serve as a guideline for business management as they developed a strategy for achieving sustainable performance. Additionally, this study will offer a preliminary step for future research on manufacturing industries in sustainable manufacturing.

Enhancing the Organizational Sustainability through Innovation and Continuous Improvement in the Context of Pakistan: Moderating Effect of Industry 4.0

Based on the Resource-based View (RBV), this study examined how Innovation may be related to the sustainability of an organization in the manufacturing sector of Pakistan. Moreover, this study also tested the mediating role of continuous improvement and moderating impact of Industry 4.0 in this relationship. Data was collected from over 322 firms in the manufacturing sector of Pakistan using a survey questionnaire. A conceptual framework and related hypotheses were developed after the literature review, which was tested with PLS-SEM and analyzed. The results of this study showed that Innovation was directly and significantly related to Organizational Sustainability. It was also found that Continuous Improvement mediates the influence of Innovation on sustainability and Industry 4.0 moderates these relationships. Overall, the study findings supported the hypotheses for their direct and indirect effects, which were also in line with the findings of the studies conducted in past on sustainability. This study has major theoretical and practical implications. Theoretically, it advances RBV by suggesting the roles of Innovation and Continuous Improvement with sustainability and also established the boundary mechanism of Industry 4.0. practically, the findings are useful for the firms not only in the manufacturing sector but also in other industries and guide the policymakers in making strategies for enhancing sustainability

The Impact of Investment Decisions on Firm Financial Performance Moderated by Economic Policy Uncertainty: Evidence from the Manufacturing Sector of Pakistan

The study examines the link between firm-level investment and firm performance moderated by economic policy uncertainty in the manufacturing sector of Pakistan across the six years from 2015–2020. The System-GMM estimation has been employed to demonstrate the problem of endogeneity with dynamic linear and non-linear models. The study revealed that the moderating impact of economic policy uncertainty has negative and significant impact on investment (investment in tangible assets, investment in intangible assets, and financial leverage) and firm performance (Tobin’s Q). Similarly, economic policy uncertainty regarding investment and firm performance (ROA) is negative and significant in investment in tangible assets, but positive and significant in financial leverage. Our findings remain constant over a range of variable characteristics, even after accounting for endogeneity issues. Our main contribution is the finding that investment and firm performance have a negative and significant relationship with economic policy uncertainty. As economic policy uncertainty raises the firm level, investment decreases, which ultimately impacts firm performance negatively. Thus, the study advises that policymakers make an effort to minimize the effect of economic policy uncertainty at a certain level. They must keep this uncertainty within a reasonable range since increased economic policy uncertainty will push businesses to minimize their short-term and long-term investments.

Effect of Despotic Leadership on the Employee Work Withdrawal Behavior and Acquiescent Silence

Purpose: The main aim to conduct this research is to identify whether LMX mediates the relationship between despotic leadership and acquiescence silence. In addition, the study also takes into account the role of Quality of work life as a mediator in the relationship between despotic leadership and work withdrawal behavior. Methodology: The data was collected by sharing the adopted questionnaire with the target population a total of 247 valid responses were received from the employee working in the manufacturing sector of Pakistan. Smart PLS was used to measure the model. The research is conducted for the managers leading a team of professionals and the community of Human Resource Development that includes business consultants, advisors, employees, top management, scholars, specialists, and students. Findings: The study found that despotic leadership increases withdrawal behavior and acquiescence in silence among employees. Moreover, leader-member exchange mediates the relationship between despotic leadership and work withdrawal behavior and quality of work-life mediates the relationship between despotic leadership and work withdrawal behavior. Conclusion: The findings declared that despotic leadership has a destructive influence on subordinates concerning increased work withdrawal behavior and acquiescent silence.

Importance of Top Management Commitment to Organizational Citizenship Behaviour towards the Environment, Green Training and Environmental Performance in Pakistani Industries

This research examines the interplay of green training, organisational citizenship behaviour toward the environment, top management commitment, and environmental performance in four different industrial units in Pakistan. These units have been implementing environmentally friendly policies and conforming their environmental activities to the regulatory framework of Pakistan’s National Environment Quality Standards in a sustainable manner. In particular, this research aims to ascertain how green training affects organisational citizenship behaviour toward the environment, and to evaluate the impact of top management commitment to environmental performance and green training. According to hypothesis testing results based on 222 key informants randomly recruited from the industry, green training positively relates to civic organisational behaviour toward the environment. In addition, top management commitment is entirely related to environmental performance. In contrast, green training is also positively associated with top management commitment. This study supports the ability motivation opportunity and resource-based view theories by demonstrating that top management commitment is a key factor in encouraging environmental performance and promoting green training that leads to organisational citizenship behaviour toward the environment. This study has several limitations, as the cross-sectional data were only from the manufacturing sector in Pakistan. The researchers strongly suggest that future studies use mixed-method research to understand the phenomenon better. Future researchers could conduct comparative research by using the current instrument in the service sector. Finally, future researchers could use multilevel modelling and potential moderators and mediators to constructively re-examine the model tested in this study by incorporating new variables accordingly.

Policy Intervention and Financial Sustainability in an Emerging Economy: A Structural Vector Auto Regression Analysis.

The purpose of the study is to observe the impact of policy intervention on financial sustainability using the structural vector autoregression (SVAR) analysis. The population of the study is the manufacturing sector of Pakistan, which is an emerging economy. Data for 249 firms operating in the manufacturing sector are taken, collected from Datastream from 2005 to 2019, with total observations of 2,400. To conduct the analysis, R software is used for its better visualization. Results show that firm performance, corporate governance, and sectoral policies have a positive and long-term impact on financial sustainability, whereas earning management and financialization not only have a negative impact, but this impact affects the operations of the corporate for a longer period. This study would be helpful for policymakers as it gives a framework for financial sustainability based on the policies and strategies developed by the sector.

Domestic Private Investment, and Export on Output Growth of Large-Scale Manufacturing Sector in Pakistan: An Application of Bound Tests to Cointegration Approach

The goal of this analysis is to explore the impact of domestic private investment in large-scale manufacturing sector on the output growth of the large-scale manufacturing in Pakistan. The investigation utilized yearly data for the year 1973-2020. By applying the autoregressive distributed lag (ARDL) technique, the study examines both short-term and long-run effects of domestic private investment (DPI) on output growth in large-scale manufacturing.However, the study affirms a positive and significant relationship among domestic private investment, exports and value-added, large-scale manufacturing (VAL) in both short-and long-run, while market size and inflation also have a negatively and significantly influence on the value-added, large-scale manufacturing sector. It is also confirmed that domestic private investment, export, inflation have a bidirectional causal relationships with large-scale manufacturing, value-added. Moreover, findings also implies that unidirectional causality is running between employment (EMP), market size (MS), and large-scale manufacturing growth output growth (VAL). Hence, numerous incentives with tax cuts or subsidizations must be sponsored by the supervision of government in a direction to foster private investment. Provided that political stability, better infrastructure, and management in industrial manufacturing zones empowers to attract transnational exports by improving law and order conditions in Pakistan.
 Keywords: Domestic private investment, value-added, large scale manufacturing, export, Pakistan.