Toward sustainable smart agriculture in a developing country: An empirical analysis of green firms determinants

The significance of green entrepreneurship in achieving socioeconomic and environmental goals has received widespread recognition in academic literature. However, despite this acknowledgment, the internal and external variables influencing the expansion and sustainability of green agricultural enterprises have not been thoroughly studied and explored in the literature. This research aims to test the theoretical Green Agriculture Support Framework (GASF), suggesting internal and external support elements that, when strategically aligned, foster the growth of green agriculture enterprises, particularly those leveraging technologies and tools associated with Agriculture 4.0. To this end, we utilized survey data collected from managers and employees of green enterprises located in Pakistan. The collected data was analyzed using the structural equation modeling (SEM) method, incorporating the partial least squares (PLS) approach through SmartPLS software. The findings imply that external variables (formal Institutions, Government Support, Culture) have significant impacts on the development of green enterprises and that internal factors (Technology, Talent Management) have somewhat limited impacts. Consequently, policymakers must concentrate on creating strategies and measures to enhance the external environment of an organization, that is, intensive government support, less rigid formal institutions and their policies, entrepreneurial culture, and overall improved economic condition of the country, and be cautious about the internal factors like rigid and outdated technology and talent management policies, that may hinder the development of such enterprises. As a result, using the organismic integration theory (OIT) theoretical lens, this research contributes to the literature by providing empirical evidence on the various internal and external factors that significantly affect the growth of innovative green agriculture enterprises. A thorough understanding of green determinants assists in identifying the areas that require attention of policymakers for the effective growth of the green agricultural sector in an economy, leading to valuable implications for green policies.