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Strategic Capabilities for Sustainability: An Integrated Model of Digital Inclusion and Sustainable Performance

Author

Listed:
  • Youli Xu
  • Ahmad Zaeem Faraz
  • Muddassar Sarfraz
  • Shafaq Arshad
  • Jianmin Sun
  • Ayesha Ahmad

Abstract

The dissipating effects of climate change and the depletion of natural resources have suppressed the productivity of agricultural land in underdeveloped countries. These interconnected pressures have compelled a shift from conventional agrarian practices to more resilient and environmentally conscious systems. Pakistan's agriculture sector stands at a critical juncture, demanding transformational practices to ensure farm business profitability and environmental sustainability. Digital financial inclusion bridges the shortcomings of traditional farming and plays a significant role in stabilizing smart agriculture activities. This study investigates how digital financial inclusion (DFI) shapes sustainable agricultural outcomes through the mediating roles of climate‐smart agriculture (CSA) adoption and supply chain agility (SCA), with human capital (HC) acting as a moderator. Using cross‐sectional survey data collected from agricultural stakeholders in Pakistan, the analysis applies structural equation modeling (SEM‐PLS) to test the hypothesized relationships. The findings demonstrate that DFI significantly enhances CSA adoption and SCA, which in turn improve both profitability and environmental sustainability outcomes. Moreover, HC strengthens the effect of DFI on CSA adoption, highlighting its critical role in maximizing the benefits of digital finance in agriculture. These results contribute to the literature on agricultural transformation by integrating digital finance, human capital, and sustainability perspectives, offering valuable insights for policymakers and practitioners seeking to promote resilient and sustainable agricultural systems.

Suggested Citation

  • Youli Xu & Ahmad Zaeem Faraz & Muddassar Sarfraz & Shafaq Arshad & Jianmin Sun & Ayesha Ahmad, 2026. "Strategic Capabilities for Sustainability: An Integrated Model of Digital Inclusion and Sustainable Performance," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 1112-1128, February.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:1:p:1112-1128
    DOI: 10.1002/sd.70306
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    References listed on IDEAS

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