Magnifying the Nexus Between Adoption of Renewable Energy and Environmental Performance of Manufacturing Sector in Pakistan

Environmental pollution has become an immense threat to humanity as it brings various natural climates such as drought, floods, and respiratory diseases which undermine human well-being. Stakeholders are forcing organizations to make their processes, operations, and functions more eco-friendly to enhance environmental performance by adopting environment-friendly means and technologies. Therefore, this study aims to examine the factors that affect the adoption of renewable energy and its nexus with environmental performance in the manufacturing sector of Pakistan. The structured close-ended questionnaire was distributed to senior managers of different organizations of the manufacturing sector. Data for this study was obtained from 218 respondents which were used for the analysis. A Partial Least Squares Structural Equation Modeling (PLS-SEM) statistical tool was employed to analyze the data. The results reveal that green self-efficacy is significantly and positively related to environmental performance and the adoption of renewable technology. Nevertheless, environmental awareness was found to be an insignificant predictor of environmental performance, while environmental awareness was positively related to the adoption of renewal technology. Adoption of renewable technology emerged as a significant predictor between green self-efficacy, green awareness, and environmental performance. Finally, it is also found that green strategy strengthens the relationship between renewable technology and environmental performance. It implies that when organizations formulate and implement green strategy (environment friendly initiatives and courses of action), they are more inclined towards adoption of renewable energy which consequently enhance better environmental performance by reducing negative footprint of manufacturing organizations.