Role of sustainable business model, Industry 4.0, crowdfunding, and stakeholders' pressure toward firm's sustainability: A SEM-ANN approach

Abstract

With growing global attention on achieving sustainable development goals, businesses worldwide face mounting pressures to incorporate sustainability into their business models and operations. However, despite the recognized importance of sustainability in modern manufacturing operations, the path toward embedding sustainability remains unclear and challenging for many manufacturing firms. Within the theoretical framework of dynamic capability theory and the imperative of sustainable development goals, this study investigates the influence of sustainable business models, crowdfunding, Industry 4.0 technologies, and stakeholders' pressure on the sustainable performance of manufacturing firms in Pakistan. Based on survey data from 370 small and medium enterprise owners and managers, our study utilized a hybrid approach by combining partial least squares–Structural equation modeling (SEM) and artificial neural networking techniques. The results emphasize a significant and positive impact of a sustainable business model on firm sustainability. Moreover, the findings reveal that Industry 4.0 technology and crowdfunding partially mediate the relationship between sustainable business models and sustainable performance, highlighting the significant role of advanced technologies and alternative financing. Besides, stakeholders' pressure emerges as a crucial moderator, further strengthening the relationship between sustainable business models and firm sustainability. This study advances knowledge of sustainable business actions within the firms and constitutes a valuable input for businesses, policymakers, and other stakeholders dedicated to enhancing sustainable growth in the manufacturing sector.