Sustainable Industry 4.0 and corporate social responsibility challenges in environmental decision-making effectiveness

Abstract

Purpose

This study aims to examine the mediating effects of two corporate social responsibility factors – leadership mindset and corporate commitment – on the relationship between sustainable orientation toward Industry 4.0 and environmental decision-making effectiveness.

Design/methodology/approach

The research model was tested using structural equation modeling based on survey data from 175 companies serving the Hajj and Umrah sector in Saudi Arabia, a sector recognized for its high level of digitalization.

Findings

The results indicate that a sustainable orientation toward Industry 4.0 and digitalization positively influences environmental decision-making effectiveness. Additionally, Corporate commitment was found to have a direct positive effect on environmental decision-making effectiveness, while leadership mindset showed no significant effect.

Originality/value

This study highlights the critical role of sustainable Industry 4.0, driven by digitalization, in enhancing service quality and competitive value in companies serving the Hajj and Umrah sector. These companies see digitalization as an opportunity to improve business outcomes through effective environmental strategic decisions, though its application remains challenging. The study contributes to the existing body of knowledge by providing empirical insights into the impact of digitalization on environmental decision-making effectiveness within this specific context.

Citation

Raissi, N., Hakeem, A. and Haidar, H.M. (2025), "Sustainable Industry 4.0 and corporate social responsibility challenges in environmental decision-making effectiveness", Journal of Asia Business Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JABS-05-2024-0282