The Digitalization Paradigm: Impacts on Agri-Food Supply Chain Profitability and Sustainability

Abstract

Digitization has completely changed the landscape of supply chain management, which enables businesses to streamline their processes and attain higher levels of profitability and sustainability. This study investigates the relationships between digitalization and supply chain elements, particularly integration, communication, operation, and distribution, and their effects on corporate profitability and sustainability. The research is based on an empirical investigation conducted through a questionnaire survey of agri-food industries in Pakistan. PLS-SEM was used for the analysis of data. The results show a positive relationship between digitalization and supply chain integration, processes, operation, and distribution. Moreover, a positive and significant relationship exists between digitalized supply chain integration, processes, operation, and distribution with business profitability and sustainability. The research concludes that the synergistic effect of digital advancements leads to increased business profitability and sustainability. Business organizations may put themselves at the forefront of supply chain excellence by adopting digitalization, benefiting from effective integration, communication, operations, and distribution with increased profitability and sustainability. The findings have a lot of practical and theoretical implications for the excellence of supply chain management and help attain several sustainable development goals, e.g., SDG-8, SDG-9, SDG-11, and SDG-12.

1. Introduction

The food supply chain is crucial to guarantee that food is affordable and high quality for people and communities [1]. It enables the transfer of agricultural goods from fields to markets, ensuring a constant and steady food supply, and links farmers, distributors, retailers, and consumers [2]. Effective supply chains that operate smoothly help avoid food shortages, price increases, and disruptions in delivering critical foods [3]. Additionally, they help the economy expand and provide jobs. It links several industries, such as manufacturing, retail, and agriculture, generating a large source of income, assisting small enterprises, and boosting economic growth. The global significance of the food supply chain encourages commerce and economic cooperation between nations. To satisfy their need for food and take advantage of comparative advantages, nations rely on imports and exports [4]. Supply chains make it easier for food to cross borders, facilitating global food commerce and promoting international collaboration. It guarantees that healthy food is delivered promptly to consumers and contributes to preventing contamination, adulteration, and diseases caused by food quality through various quality control measures. It offers multiple food products yearly, independent of seasonal changes [5]. The supply chain adjusts to shifting customer requirements through market and consumer feedback, making it easier to introduce new items. The agriculture industry benefits from innovation because of the food supply chain [6]. It promotes implementing cutting-edge technologies, environmentally friendly agricultural methods, and enhanced production techniques [7]. Supply chain management systems make better resource planning, coordination, and optimization possible, which boosts output while cutting waste and enhancing resource management [8].

Like several other nations, there are several challenges that Pakistan’s food sector supply chain is facing. Inadequate infrastructure and logistical facilities are one of the main problems [9]. Pakistan’s transportation system, which includes its roads, trains, and ports, frequently experiences congestion, delays, and a lack of capacity, which raises transportation costs and extends lead times [10]. Food waste is also a result of inadequate cold storage facilities and ineffective handling of perishable foods after harvest. The lack of coordination and integration between supply chain actors is another significant barrier [11]. It is challenging to successfully share information and interact in fragmented and unconnected systems. As a result, it is difficult to satisfy client requests, and inventory management problems arise. It also makes it challenging to handle quality control issues since they prevent real-time tracking and traceability [12].

The challenges also come from the reliance on human-based manual operations and a lack of automation [13]. Manual data input, record keeping, and paperwork can all result in mistakes, hold up processes, and waste time. The inability to collect real-time data, optimize operations, and make data-driven choices results from the lack of contemporary technology, such as supply chain management systems [14]. Pakistan’s food industry also confronts difficulties with sustainability. Corban emissions, inefficient transportation and infrastructure, food waste, inefficient processing and manufacturing, water shortages, etc., influence the supply chain’s overall productivity and sustainability and the accessibility and price of food [15].

Digitalization of supply chain practices is one way to overcome these challenges, improving coordination and collaboration, enabling smooth information flow and effective coordination among various stakeholders and parties [16]. It will also enable supply chain organizations to maintain quality and fulfil the demands of national and international markets through real-time data [17]. Adopting digitalization may also improve visibility, increase operational efficiency, minimize waste, make the operation energy efficient, facilitate improved decision-making, and make the supply chain environmentally friendly. This study aims to examine the impact of digitalization on the business profitability and sustainability of the supply chain management departments of the agri-food sector of Pakistan. Further, this study will determine how this relationship is mediated through different channels. These channelized factors are the integration, processes, operation, and distribution. For this, the study has the following questions to answer.

• Does digitalization impact supply chain practices?
• Is there any relationship between digitalization and supply chain business profitability?
• Is there any relationship between digitalization and supply chain sustainability?

Based on the above research question, this study has framed the following objectives:

• To find out the impact of digitalization on supply chain practices.
• To find out the impact of digitalization on supply chain business profitability.
• To find out the impact of digitalization on supply chain sustainability.

The paper consists of the introduction, literature review, methodology, results, discussion, conclusion, and implications. The introduction serves as a launchpad by providing background and significance with a focus on the problem and objectives of the research. The literature review explores current research and pertinent theories, forming the basis for the research. The methodology lays out the research strategy and design, collection of data, and analysis methods, ensuring transparency in the data collection and analysis. The empirical findings are presented in the results section. The discussion provides an interpretation and contextualization of the results along with their implications and contribution towards sustainable development goals. The research is finally summarized in the conclusion, along with its limitations and direction for future research.

2. Literature Review

2.1. Digitalization of Supply Chain

Utilizing digital technology and systems to promote smooth communication, cooperation, and coordination across different stakeholders throughout the supply chain system is known as “digitalizing supply chain” [18]. It includes integrating data, technologies, and processes to increase operational effectiveness, real-time visibility, and decision-making. Business profitability and sustainability have undergone substantial changes due to supply chain digitalization [19]. Companies have changed their old supply chain procedures into highly effective and connected systems using cutting-edge technology like artificial intelligence, big data analytics, etc. [20].

Improved operational efficiency is one of the primary effects of digitalization on corporate profitability. Companies may improve inventory management, shorten lead times, and streamline logistical processes using real-time data tracking and analysis [21]. With digital technologies, firms can accurately estimate demand, optimize production, inventory levels, and cut expenses related to stocking. Digitalization through automation in distribution centers and warehouses increases productivity and saves labor costs [22].

Digitalization also improves the transparency and visibility of the supply chain. Through the supply chain, businesses may follow the movement of products and keep an eye on their status, improving inventory control and lowering losses from theft, damage, or expiry [23]. When suppliers, manufacturers, and customers share real-time data, it promotes cooperation, speeds decision-making, and reduces delays and interruptions [24].

Adopting sustainable supply chain practices is made possible by digitalization, encouraging environmental and social responsibility. Companies may find inefficiencies and optimize routes using data analytics, lowering fuel use and carbon emissions [25]. Increased transparency and traceability support fair labor practices and responsible sourcing, ensuring adherence to laws and moral standards. Customers who prioritize sustainability are more inclined to support companies that use supply chains that are socially and environmentally sustainable [26].

Digitalization brings innovative business concepts, such as manufacturing on demand and customized consumer experiences. Companies may access a larger client base, customize items to specific customer needs, and provide faster and more flexible delivery choices by utilizing digital platforms and e-commerce [27]. This improves consumer happiness while creating new revenue sources and fostering corporate expansion [28].

The digitalization of the supply chain has significantly impacted business profitability and sustainability. Reduced costs, increased income, and higher customer satisfaction result from greater operational efficiency, visibility, and sustainable practices [29]. Businesses that embrace digitalization and use its possibilities will have a better chance of thriving in today’s quickly changing and competitive business environment as technology advances [30].

2.2. Digitalization and Supply Chain Integration

Digitization improves the integration of the supply chain through enhanced visibility and transparency. Real-time information access is made possible by digital platforms and technologies, enabling stakeholders to trace the flow of products, keep an eye on inventory levels, and learn more about the function of the supply chain as a whole. By increasing visibility and enabling proactive decision-making, greater risk management, and the capacity to handle problems quickly, interruptions and delays are reduced [31].

Digitalization also makes cooperation and communication easier. Suppliers, producers, distributors, and consumers can communicate information, plan activities, and synchronize their operations using common platforms and digital networks [32]. Accurate demand forecasting, inventory optimization, and effective planning are made possible by real-time data exchange, improving responsiveness, and lowering supply chain costs [33].

Digitalization also makes manual supply chain integration activities more automated and efficient. By automating repetitive processes like order processing, billing, and record entry, robotic process automation (RPA) and machine learning algorithms may free up resources for more value-added activities. Automation lowers error rates, expedites processes, and improves operational effectiveness [34].

In summary, supply chain integration has been influenced by digitalization, which has made it possible for more visibility, collaboration, automation, and data-driven decision-making [35]. Due to digital technology, companies can better simplify operations, increase operational effectiveness, and adapt to shifting market dynamics. As companies adopt digitalization, supply chain integration will advance competitiveness and sustainability by becoming more integrated, effective, efficient, and responsive to consumer expectations [36].

2.3. Digitalization and Supply Chain Operation

Efficiency, agility, and overall performance have all seen considerable improvements due to the digitalization of supply chain processes. Companies have converted their old supply chain operations into efficient, data-driven processes using digital technology and creative solutions [37]. Real-time tracking and visibility have increased because of digitalization in supply chain processes. Due to digital platforms and technologies, companies can track inventories, shipments, and manufacturing processes in real time. This increased visibility makes better coordination possible, lowering the chance of stock-related issues and enabling early action to resolve problems quickly [38].

Digitalization also makes it easier to automate and improve supply chain operations. Automating repetitive operations like order processing, billing, and data entry using robotic process automation (RPA) and machine learning algorithms may lower mistakes and boost operational effectiveness. In addition, anticipating demand, managing inventories, and planning production may all be improved by sophisticated analytics and algorithms, allowing businesses to match supply and demand better, cut costs, and enhance customer service [39]. Digitalization through cloud-based systems offers an adaptable and scalable infrastructure that enables businesses to store and process massive quantities of data, work with partners, and access tools and apps from any location. It makes real-time data sharing possible, lowers IT infrastructure costs, and supports scalability as organizations expand and change [40].

In conclusion, digitalization can transform supply chain operations by strengthening cooperation, allowing automation and optimization, and utilizing emerging technology. Companies with a digital strategy obtain a competitive advantage by increasing productivity, cutting expenses, and improving customer service. The future of supply chain operations will be shaped more by digitalization as technology progresses, allowing organizations to adjust to shifting market dynamics and ensure sustainability [41].

2.4. Digitalization and Supply Chain Purchasing

The procurement process has been transformed by the digitalization of the supply chain, positively impacting effectiveness, cost reductions, and managing suppliers. By utilizing digital technology, businesses have converted their old buying procedures into efficient, data-driven systems [42]. Digital platforms allow procurement managers to automate several processes, including the selection of suppliers, the development of requests for proposals (RFPs), the assessment of bids, and the preparation of purchase orders. These automated procedures shorten the length of the procurement cycle, speed up the decision-making process, and reduce mistakes [43].

Digitalization also makes it easier to collaborate, manage suppliers, and enable e-procurement. Online supplier markets and portals offer a centralized platform where businesses may look for, assess, and onboard suppliers by predetermined criteria. In addition to facilitating smooth communication, document sharing, and performance tracking, these systems facilitate real-time cooperation and strengthen supplier relationships [44].

Additionally, digitalization encourages transparency and accountability in the procurement process by automating compliance checks, ensuring regulatory conformance, and monitoring supplier performance against preset criteria. These features help risk management in supply chain purchasing. Digitalization improves inventory management through real-time data analytics, and demand forecasting technologies assist in discovering demand patterns, enabling proactive procurement and better inventory planning [45].

Digitalization of supply chain purchasing has improved efficiency, collaboration, accountability, and data-driven decision-making. By cutting costs, fostering better supplier relationships, and promoting strategic sourcing, businesses that use digital technologies in purchasing gain a competitive edge. Digitalization will become more critical in determining the future of supply chain purchasing as technology develops, allowing firms to optimize their procurement procedures and increase value throughout the supply chain [46].

2.5. Digitalization and Supply Chain Distribution

The movement, storage, and delivery of goods have all been revolutionized by the digitalization of supply chain distribution. Through digitalization, companies have converted their old distribution operations into efficient and data-driven systems [47].

Due to digital technologies, Businesses can automate various distribution processes, including order processing, managing warehouses, and logistics planning [48]. Automation shortens lead times, boosts productivity, and simplifies processes, resulting in better distribution efficiency overall and quicker order fulfilment. Businesses may optimize inventory levels, reduce stockouts or surplus inventory, and boost supply chain efficiency by integrating distribution data with other supply chain operations [49].

Furthermore, digitalization facilitates the use of sophisticated logistical techniques. Large datasets can be analyzed using optimization algorithms, offering the best scheduling, and routing options. As a result, distribution operations become more sustainable, transportation costs are decreased, and carbon emissions are reduced, ensuring enhanced load planning, transportation efficiency, and cost optimization [50]. As a result of the digitalization of supply chain distribution, efficiency, visibility, and client experiences have all improved how items are delivered. Adopting digital technology enables businesses to streamline distribution procedures, increase visibility, improve inventory control, and deliver individualized customers [51].

2.6. Digitalization of Supply Chain (Integration, Communication, Operation, and Distribution) and Business Profitability

The integration, communication, operation, and distribution of the supply chain through digitalization have significantly and positively impacted business revenue [52]. Opportunities emerge for businesses to improve their profitability and acquire a competitive advantage due to adopting digital technologies. For example, operational efficiency has grown as a result of digitalization. Businesses may quickly make information-based decisions by optimizing inventory levels, manufacturing schedules, and distribution channels via real-time data exchange [53]. Automating repetitive tasks increases productivity, lowers costs by eliminating human mistakes, and frees up important resources. Reduced costs and increased profitability are the immediate results of these optimized operations. Additionally, supply chain partners may collaborate better because digital integration reduces the possibility of stock-related issues, improving inventory control and lowering carrying costs [54]. Additionally, enhanced digital communication increases consumer happiness and loyalty. Businesses may offer better customer service with better insight into order progress, shipment information, and delivery schedules. Satisfied customers will be more inclined to make more purchases, which boosts sales and profitability. Companies may target a wider audience through digitalization, which increases sales volumes and income streams [55]. This is made possible through E-commerce platforms and digital marketing methods. Additionally, data-driven insights from digital platforms assist firms in better understanding consumer habits and developing market trends so they can better modify their products and services to match changing customer needs. Additionally, it improves response times and reduces lead times, giving organizations a competitive edge and leading to greater sales and revenue by swiftly adjusting to market changes and obtaining new opportunities. Despite the initial expense of adopting digital technology, it increases profitability in the long run [56]. It makes businesses function more effectively, use resources more effectively, and respond to market needs more quickly, eventually resulting in more sales and better financial results. Companies that adopt these technologies into their supply chains are more likely to succeed in a competitive and dynamic market, further increasing their profitability [57].

2.7. Digitalization of Supply Chain (Integration, Communication, Operation, and Distribution) and Sustainability

The integration, operation, communication, and distribution of the supply chain through digital means is revolutionizing businesses and significantly impacting sustainability. Businesses have increased supply chain efficiency and transparency by utilizing advanced technologies like IoT, AI, and blockchain. Real-time data analytics and sharing allow for better-informed decision-making, improving lead times, lead reduction, and overall productivity [58]. Decreased environmental impact is one of supply chain digitalization’s most significant effects on sustainability. Digitization enables more exact resource monitoring and management, which reduces waste and energy usage. Businesses may identify areas with the biggest environmental footprints and undertake targeted solutions to decrease them through increased insight into supply chain activities [59]. Sustainable practices, such as environmentally conscious purchasing and packaging, may be easily incorporated and enforced across the supply chain to promote a greener and more socially conscious approach to business. Adopting sustainable ideas and practices is promoted through digitalization, fostering cooperation and information exchange among stakeholders [60]. As a result, more things are made to be durable, repairable, and recyclable, which lessens the demand for natural resources in the long run [61]. Electronic monitoring and tracing technology also make it possible to identify ethical labor practices, sustainable suppliers, and compliance with environmental rules, assuring a better social responsibility [62].

In short, there has been a significant and positive influence on sustainability from the digitalization of supply chain integration, operation, communication, and distribution. Businesses may link their operations with environmental and social responsibility objectives by optimizing processes, cutting waste, fostering circular practices, and enforcing ethical standards. Companies must maintain a thoughtful and ethical attitude to digitalization as technology develops, making the most of its ability to promote sustainability.

Table 1. Literature summary and gap analysis.

Ref	Future Research Direction/Gap
[18]	Conducting the study in similar industries in other countries can increase the validity and generalizability of the results.
[19]	This work can be extended with framework development and practical tools other than qualitative inquiry.
[20]	We encourage academicians to conduct future studies for formulating suitable strategies to integrate and augment resilience and sustainable aspects through technological implementation.
[24]	Further researchers should develop and explore a framework in depth, including the development of digital systems and their implementation in industrial manufacturing.
[26]	Future research could gather data from multiple settings to investigate how digitalization facilitates supply chain management.
[27]	Further study should explore how digitalization will improve the firm processes.
[28]	The impact of digitalization should be explored in the context of organizational sustainability.
[34]	Digital automation will improve operational effectiveness, so its effect must be confirmed on business profitability.
[39]	Digitalization has improved several industries’ operations, so it should be checked into other industrial contexts.
[42]	Digital technology in businesses has converted their old buying procedures into efficient data-driven systems to be tested in business distribution and operations.
[44]	Digitalization also makes collaborating, managing suppliers, and enabling e-procurement easier, so its impact can be tested into overall supply chain management.
[45]	Digitization encourages transparency and accountability in the procurement process by automating compliance checks.
[49]	Automation shortens lead times, boosts productivity, and simplifies processes, resulting in better distribution efficiency, so it is expected also to increase business profitability.
[52]	Communication, operation, and distribution of the supply chain through digitalization have significantly impacted business profitability; their impact must be tested for sustainability.
[55]	Companies may target a wider audience through digitalization, which increases sales volumes and income streams. Its impact must be tested on business profitability.
[59]	Decreased environmental impact has increased sustainability. Further researchers are recommended to test the effect of digitalization on it.
[61]	Durable, repairable, and recyclable materials lessen the demand for natural resources in the long run. Hopefully, they will impact business sustainability and profitability.

shows a summary of the literature and research gaps.

2.8. Theoretical Framework and Hypothesis

A theoretical basis is essential, as it provides the basic framework for establishing a field of knowledge. It offers the fundamental theories and concepts that govern and support the investigations, applications, and improvements in a particular area. This research is based on the theoretical foundation of the following theories.

Digital Supply Chain Integration Theory (DSCIT): This approach strongly emphasizes the ecosystem-wide adoption of digital technology. Businesses may gain collaboration, instant visibility, and data sharing by linking suppliers, distributors, manufacturers, and retailers through digital platforms [63]. This integration promotes sustainable practices, improves operational effectiveness, and decreases lead times. [64]. In order to clarify the significant effects of supply chain digitalization on sustainability and profitability, DSCIT provides a strategic framework. Digital tools improve supply chain efficiency, end-to-end visibility, efficiency, and improve the process of risk management by utilizing analytics, real-time data sharing, and automation. As a result, firms are able to minimize their environmental impact, optimize processes, and enhance profitability. Transparent traceability, customer-centric methods, and supplier collaboration all support sustainability initiatives. Firms can accomplish the goals of sustainability and profitability by adopting digital tools in supply chains.

Circular Economy Theory (CET): This theory aims to reduce waste while maximizing the best utilization of resources by developing goods and supply networks that can be recycled, remanufactured, and utilized again [65]. This can be performed through digitalization, as it can monitor a product’s lifecycle, facilitate reverse logistics, and enable effective resource allocation necessary for sustainability and business profitability. CET is suitable to show how supply chain digitalization can increase corporate profitability and sustainability. Firms can increase resource efficiency and reduce waste generation—two fundamental tenets of the CET—by digitalizing their supply chains. By optimizing resource utilization, reducing excessive stock, and minimizing emissions from transport through improved data analytics and real-time visibility, firms thus aligning with CET aims to reduce the environmental impact. Digital technologies also assist companies recycle, repair, and recover more effectively, improving the lifespan of products and encouraging responsible consumption. Because of this, integrating digital solutions improves sustainability by adhering to the concepts of the CET, and serves to minimize costs and increase efficiency in operations, which in turn improves business profitability.

Predictive Analytics and Demand Forecasting Theory (PADFT): This theory uses real-time data and past information to predict demand using machine learning and advanced analytics, which keeps supplies available when required, optimizes inventory levels, and reduces extra stock and waste [66]. The theory is essential for knowing how supply chain digitalization might increase company profitability and sustainability. Large-scale data sets may be gathered and analyzed by using predictive analytics which improves demand forecasting accuracy. Due to the ability to accurately forecast consumer demands and market trends, businesses are able to minimize waste, optimize inventory levels, and prevent excessive production. This assists enterprise boosts their profitability by minimizing environmental effect and lowering carrying costs by synchronizing production and distribution with actual demand. Furthermore, supply networks are given the ability to modify when demand fluctuations and trends are expected, which minimizes the environmental impact of these decisions. By using predictive analytics, supply chain firms optimize operations and reduce resource waste, which promotes sustainability and improves profitability.

Digital Procurement and Supplier Collaboration Theory (DPSCT): focuses on making procurement procedures more digital and working collaboratively with suppliers, leading to sustainable procurement decisions [67]. Firms can make informed buying decisions that support their environmental objectives via digital platforms for assessing the green practices of suppliers. It offers an excellent basis to show how supply chain digitalization can improve profitability and sustainability. Companies can optimize procurement operations and choose vendors by adopting digital procurement processes and promoting tighter collaboration with suppliers. Digital procurement methods reduce environmental hazards by continuous monitoring of supplier efficiency and ensuring adherence to environmental regulations. Digital platforms that foster collaboration enable suppliers to share expertise and work together on sustainability projects, which promotes responsible procurement, resource optimization, and cost savings, ultimately leading to sustainability and profitability.

Theoretical Mechanism: Firms can develop a comprehensive and effective digital strategy for reshaping their supply networks by integrating the DSCIT, CET, PADFT, and DPSCT. Some of the concepts from each theory are combined in a single framework to obtain sustainability and achieve financial success [68].

A key component of this framework is incorporating digital platforms, which enables the agri-food supply chain to collaborate with all stakeholders, promoting real-time information exchange, making decisions, communicating, and accurate forecasting of demands. With the help of digital technology, suppliers, producers, distributors, and retailers can collaborate in responding to changes in demand, reducing waste and surplus production while assuring the on-time availability of products [69]. It also makes proactive risk management easier as it facilitates early detection of possible disruptions, prompt mitigation, and operation maintenance. The framework also incorporates circular economy concepts that were stress-producing products and processes with lifetime and sustainability. Using a modular design approach, products become easier to maintain and upgrade, lowering the demand for fresh material inputs and increasing the entire product lifespan [70]. This can be achieved through IoT sensors during monitoring re-manufacturing, which decreases waste and increases resource efficiency as guided by the circular economy theory. Predictive analytics is another essential part of the framework, which improves inventory management. It improves manufacturing and procurement through reliable demand forecasts and assists companies in minimizing surplus inventory, lowering waste from unsold products, and optimizing the whole supply chain process. Last, DPSCT adds efficiency and sustainability to the supply chain. By implementing digital technologies, procurement procedures are streamlined, resulting in decreased manual labor and increased efficiency. Collaborative networks improve supplier relationships, enabling businesses to source products that support sustainability [71].

In short, this theoretical framework presents a comprehensive approach to supply chain digitalization for business profitability and sustainability and believes that firms can develop a supply network more efficiently and sustainable by leveraging digital integration, circular economy concepts, predictive analytics, and digital procurement, as shown in Figure 1. Figure 1 is created by the authors.

Based on this theoretical mechanism, the following hypotheses were made.

H₁: 

Digitalization significantly impacts the supply chain integration.

H₂: 

Digitalization has a significant impact on the supply chain operation.

H₃: 

Digitalization has a significant impact on supply chain purchasing.

H₄: 

Digitalization has a significant impact on supply chain distribution.

H₅: 

Digitalized integration has a significant impact on business profitability.

H₆: 

Digitalized integration has a significant impact on sustainability.

H₇: 

Digitalized operation has a significant impact on business profitability.

H₈: 

Digitalized operation has a significant impact on sustainability.

H₉: 

Digitalized purchasing has a significant impact on business profitability.

H₁₀: 

Digitalized purchasing has a significant impact on sustainability.

H₁₁: 

Digitalized distribution has a significant impact on business profitability.

H₁₂: 

Digitalized distribution has a significant impact on sustainability.

3. Methodology

3.1. Philosophical Foundation

The philosophical roots of this study are based on the positivism paradigm. A deductive approach based on the quantitative approach will address the issue. Both primary and secondary data were used for the study. Secondary data were used to develop the study’s theoretical framework, while primary data were used to analyze the findings. A purposive sampling technique was used to collect data from the 608 supply chain departments of the agri-food industry across Pakistan with a closed-ended questionnaire. The study’s respondents were supply chain managers and related supply chain staff. The gathered data were analyzed using the partial least square technique with the help of SmartPLS. The rationale for using SmartPLS is that whenever a researcher wants to conduct a structural equation modelling, he has two main common tools to adopt: a variance-based approach and a co-variance-based approach. As we know, the co-variance-based approach is used when the researcher is in the phase of theory development, while the variance-based approach is used when the researcher is in the phase of theory testing. This study is based on the testing of different prior theories. So, a variance-based approach is most suitable for this study. Regarding the variance-based approach, most researchers suggest SmartPLS (v4), the most robust software for structural equation modelling based on a variance-based approach.

3.2. Measurement Scales

As this study was based on a pre-defined theoretical foundation, all the constructs of the study were adopted from prior established studies considering the measures’ reliability and validity.

Table 2. Measurement instruments.

Sustainability [72]	We actively monitor resource usage in supply chain practices
	We actively monitor energy usage in supply chain practices.
	We implement a systematic approach to setting environmental targets in supply chain practices.
	We actively monitor waste production in supply chain practices.
	We actively monitor energy usage in supply chain practices.
Business Profitability [73]	Our organization cares a lot about the total cost of manufacturing and distribution
	Our organization wants to increase Return on investment through increased sales and less delay.
	Our organization wants to reduce the cost of resources used through efficient supply chain practices.
Digitalization [73]	Digitalization is necessary to make the supply chain efficient
	Digitalization makes the supply chain more productive through better operation, distribution, integration, and purchasing.
	Digitalization helps to use less resources.
	Digitalization enhances the information flow in the supply chain and makes it more profitable.
Supply Chain Operation [73]
	Your organization frequently measures and evaluates operations.
	Your organization facilitates customers and other partners of supply chain ability to seek assistance from it to enhance operations.
Our organization shares information with its trading partners necessary for operations.
Supply Chain Purchasing [73]	Our organisation streamlines ordering, receiving, and other paper work from its suppliers
	Our organization cares about the total distribution cost, including transportation and handling costs.
	Our organization cares about the cost associated with held inventory.
Supply Chain Integration [73]	Our organization regularly solves problems jointly with its suppliers
	Our company has an integrated system across functional areas that allows the collection of and quick access to accurate information for all departments.
	We emphasize purchasing, inventory management, sales, and distribution department information flows.
	We emphasize physical flows among production, packing, warehousing, and transportation departments.
	Company managers promote collaboration between departments as a way to improve organizational performance.
Supply Chain Distribution [74]	Our organization strives to reduce time wastage in operations
	Our organization pushes suppliers for shorter lead times.
	Ability to respond to and accommodate demand variations, such as seasonality.
	Ability to respond to and accommodate periods of poor supplier performance
	Ability to respond to and accommodate new products, new markets, or new competitors
	Our organization streamlines ordering, receiving, and other paper work from its suppliers.
	Your organization’s production process modules can be rearranged so that customization canbe carried out latter at distribution centers

shows the list of the measures with their respective items and the source where they have been adopted. All the items were measured with a five-point Likert scale where one denotes the lowest level of the agreement while five represents the highest level.

3.3. Sample General Characteristics

Table 3. Sample characteristics.

Gender	Frequency	Percentage
Male	492	80.9%
Female	116	19.1%
Total	608	100%
Age Group	Frequency	Percentage
Up to 30 Years	234	38.5%
31 to 45 Years	324	53.3%
Above 45 Years	50	8.2%
Total	608	100%
Industry Experience	Frequency	Percentage
Less than 3 Years	187	30.8%
3 to 8 Years	254	41.8%
More than 8 Years	167	27.5%
Total	608	100%

shows the general characteristics of the research sample. According to the table, there is a total of 608 respondents. The first section of the table shows the gender distribution of the respondents, which shows that among the 608 respondents, 492 were males and 116 were females. The second section of the table shows the age distribution of the respondents, indicating that among the 608 respondents, 234 were up to the age of 30. Three hundred and twenty-four were from 31 to 45 years old, while the remaining 50 respondents were above 45. The table’s third and last section shows the industry-related experience of the respondents. This section indicates that among the 608 respondents, 187 have experienced below three years, 254 have experience between 3 to 8 years, while the rest of the 167 respondents have experience of more than eight years.

3.4. Reliability of the Scales

When we run structural equation-based modelling on a variance-based approach, it is necessary to confirm the reliability of the scales adopted from the prior studies. There are two main tests for reliability: item reliability and construct reliability.

3.4.1. Items Reliability

Item reliability is a test of reliability that measures how much the individual items of each construct are reliable for further study. The measure used for the item’s reliability is called outer loading. The threshold value for the outer loading is 0.7 or above, but a value of 0.6 is also acceptable if the basic requirements of the convergent validity are met.

Table 4. Items reliability.

Constructs	Items	Outer Loading Values
Business Profitability	BP1	0.838
	BP2	0.923
	BP3	0.859
Digitalization	DB1	0.814
	DB2	0.845
	DB3	0.857
	DB4	0.812
Supply Chain Distribution	DT10	0.769
	DT3	0.655
	DT5	0.701
	DT6	0.757
	DT7	0.729
	DT8	0.734
	DT9	0.635
Supply Chain Integration	IN1	0.760
	IN2	0.826
	IN3	0.835
	IN4	0.746
	IN5	0.829
Supply Chain Operation	OP1	0.842
	OP2	0.887
	OP3	0.854
Supply Chain Purchasing	PR1	0.873
	PR2	0.841
	PR3	0.821
Sustainability	SB1	0.620
	SB2	0.763
	SB4	0.763
	SB5	0.713
	SB6	0.728

shows that all the items have an outer loading value greater than the threshold value, indicating that all the model items for each construct are reliable.

3.4.2. Construct Reliability

Construct reliability is a type of reliability that explains how consistent a model’s construct is. The construct reliability measures are Cronbach’s alpha and composite reliability. The threshold value for both measures is 0.7 and above.

Table 5. Construct reliability.

Constructs	Cronbach’s Alpha	Composite Reliability
Business Profitability	0.845	0.850
Digitalization	0.841	0.845
Supply Chain Distribution	0.852	0.856
Supply Chain Integration	0.859	0.863
Supply Chain Operation	0.826	0.826
Supply Chain Purchasing	0.803	0.829
Sustainability	0.765	0.771

shows that all the constructs have reliability values greater than the threshold value, indicating that all the constructs are reliable for further analysis.

3.5. Validity of the Scales

Validity is the measure of identifying how much the scales are logically sound. There are two major types of validity when we use a variance-based approach: convergent validity and discriminant validity.

3.5.1. Convergent Validity

Convergent validity is the measure that finds out how much the items of a construct represent the construct. The average variance extracted (AVE) is the convergent validity measure. The threshold value for the AVE is 0.05 or above.

Table 6. Convergent validity.

Constructs	The Average Variance Extracted (AVE)
Business Profitability	0.764
Digitalization	0.508
Supply Chain Distribution	0.692
Supply Chain Integration	0.640
Supply Chain Operation	0.742
Supply Chain Purchasing	0.715
Sustainability	0.517

shows that all the constructs have a convergent validity value greater than the threshold value, indicating that all the constructs are convergently valid.

3.5.2. Discriminant Validity

Discriminant validity is the measure that calculates how much one construct theoretically differs from the other. The three common measures used for discriminant validity are HTMT ratios, cross-loadings, and Fornell–Larcker criteria.

Table 7. HTMT ratios.

	Heterotrait–Monotrait Ratio (HTMT)
Supply Chain Digitalization <-> Business Profitability	0.216
Supply Chain Distribution <-> Business Profitability	0.441
Supply Chain Distribution <-> Digitalization	0.446
Supply Chain Integration <-> Business Profitability	0.832
Supply Chain Integration <-> Digitalization	0.249
Supply Chain Integration <-> Supply Chain Distribution	0.469
Supply Chain Operation <-> Business Profitability	0.666
Supply Chain Operation <-> Digitalization	0.231
Supply Chain Operation <-> Supply Chain Distribution	0.636
Supply Chain Operation <-> Supply Chain Integration	0.824
Supply Chain Purchasing <-> Business Profitability	0.536
Supply Chain Purchasing <-> Digitalization	0.322
Supply Chain Purchasing <-> Supply Chain Distribution	0.682
Supply Chain Purchasing <-> Supply Chain Integration	0.544
Supply Chain Purchasing <-> Supply Chain Operation	0.563
Sustainability <-> Business Profitability	0.823
Sustainability <-> Digitalization	0.431
Sustainability <-> Supply Chain Distribution	0.606
Sustainability <-> Supply Chain Integration	0.816
Sustainability <-> Supply Chain Operation	0.774
Sustainability <-> Supply Chain Purchasing	0.731

indicates the HTMT values of the constructs. The threshold value for the HTMT is 0.85 or less. The table below of the HTMT shows that all the HTMT values are smaller than the threshold value, indicating that all the study constructs are discriminately valid.

Another measure used for discriminant validity is the Fornell–Larcker criteria. The threshold value for the Fornell–Larcker criteria is that the diagonal values must be greater than those of its corresponding columns and rows.

Table 8. Fornell–Larcker criteria.

	Business Profitability	Digitalization	Distribution	Integration	Operation	Purchasing	Sustainability
Business Profitability	0.874
Digitalization	0.189	0.713
Supply Chain Distribution	0.378	0.383	0.832
Supply Chain Integration	0.716	0.224	0.414	0.800
Supply Chain Operation	0.556	0.214	0.539	0.697	0.861
Supply Chain Purchasing	0.450	0.296	0.565	0.467	0.462	0.845
Sustainability	0.718	0.356	0.500	0.716	0.616	0.582	0.719

shows that all the diagonal values are greater than those of their respective columns and rows, indicating that all the constructs are discriminately valid. The cross-loading of all items is also significant, showing a discriminant validity.

3.6. Model Fitness

Once the constructs’ reliability and validity are achieved, it is necessary to validate the fitness of the research model before it is estimated based on the regression analysis. Different measures, like SRMR, NFI, Chi-square, etc., are used in the SmartPLS to estimate the model fitness. According to the statisticians and the researchers, SRMR is the most robust measure to identify the model fitness for a variance-based structural equation modelling [75]. The threshold value for the SRMR is 0.8 or below [76].

Table 9. Model fitness.

	Saturated Model	Estimated Model
SRMR	0.073	0.190
d_ULS	3.208	16.763
d_G	1.406	1.861
Chi-square	711.641	837.519
NFI	0.642	0.578

shows that the SRMR value is smaller than the threshold value, which indicates that the model fitness has been achieved.

3.7. Common Method Bias

Common method bias is a significant issue with the primary data. This problem mostly occurs when the study’s independent and dependent variables are measured with the same response method. Different measures are used for the common method bias issue, but statisticians and the researcher suggest VIF values as a robust technique to identify the common method bias. According to them, a VIF value equal to 3 or less means the model is free from the common method bias issue.

Table 10. Common method bias.

Relationships	VIF
Digitalization → Supply Chain Distribution	1.000
Digitalization → Supply Chain Integration	1.000
Digitalization → Supply Chain Operation	1.000
Digitalization → Supply Chain Purchasing	1.000
Supply Chain Distribution → Business Profitability	1.718
Supply Chain Distribution → Sustainability	1.718
Supply Chain Integration → Business Profitability	2.054
Supply Chain Integration → Sustainability	2.054
Supply Chain Operation → Business Profitability	2.286
Supply Chain Operation → Sustainability	2.286
Supply Chain Purchasing → Business Profitability	1.628
Supply Chain Purchasing→ Sustainability	1.628

shows that all the VIF values are smaller than the threshold values, which indicates that the model is free from the common method bias issue.

4. Quantitaive Analysis

4.1. Structural Model

Figure 2, also generated by the authors during analysis, shows the relationship between the study variables which are explained in the discussion.

4.2. Hypothesis Testing and Regression Analysis

Table 11. Path coefficient.

Hypothesis	Beta	T Statistics	p Values	Results
H1: Digitalization -> Supply Chain Integration	0.224	4.657	0.000	Supported
H2: Digitalization -> Supply Chain Operation	0.214	1.848	0.045	Supported
H3: Digitalization -> Supply Chain Purchasing	0.296	2.976	0.003	Supported
H4: Digitalization -> Supply Chain Distribution	0.383	4.316	0.000	Supported
H5: Supply Chain Integration -> Business Profitability	0.602	6.382	0.000	Supported
H6: Supply Chain Integration -> Sustainability	0.479	3.621	0.000	Supported
H7: Supply Chain Operation -> Business Profitability	0.066	0.631	0.528	Not Supported
H8: Supply Chain Operation -> Sustainability	0.212	3.012	0.003	Supported
H9: Supply Chain Purchasing -> Business Profitability	0.126	1.414	0.157	Not Supported
H10: Supply Chain Purchasing -> Sustainability	0.250	2.465	0.014	Supported
H11: Supply Chain Distribution -> Business Profitability	0.023	0.246	0.806	Not Supported
H12: Supply Chain Distribution -> Sustainability	0.213	1.953	0.042	Supported

shows the statistics of the hypotheses. All twelve hypotheses are based on direct relationships. Two common measures used for the statistical significance of a hypothesis are a p-value and a t-value. The threshold value for the p-value is 0.05 or less, while the threshold value for the t-value is 1.96 or above. The table of the hypothesis testing shows that among the twelve hypotheses, nine are statistically significant, while three are insignificant based on the above threshold criteria. Insignificant hypotheses are based on the relationship between operation and business profitability, purchasing and business profitability, and distribution and business profitability. The beta value for each relationship explains the strength of the relationship.

4.3. Coefficient of Determination

The coefficient of determination explains how much variation in the dependent variable is due to the variables present in the model of the study. The measure used for the coefficient of determination is R-squared. The table below shows two dependent variables of the model: sustainability and business profitability.

Table 12. Coefficient of determination.

	R-Squared	R-Squared Adjusted
Business Profitability	0.533	0.513
Supply Chain Distribution	0.146	0.138
Supply Chain Integration	0.05	0.04
Supply Chain Operation	0.046	0.036
Supply Chain Purchasing	0.087	0.078
Sustainability	0.607	0.591

shows that the overall independent variables in the model explain 53.3% variation in the business profitability while 60.7% in sustainability. This indicates that this model is more efficient for defining sustainability than business profitability.

4.4. IPMA Analysis

IPMA stands for importance and performance matric analysis. This is an advanced test in the SmartPLS used to estimate the importance and performance of the individual variables for the dependent variable.

Table 13. IPMA analysis.

Constructs	Sustainability		Business Profitability
	Importance	Performances	Importance	Performances
Digitalization	0.450	45.334	0.515	38.468
Supply Chain Distribution	0.234	34.354	0.419	78.231
Supply Chain Integration	0.345	56.456	0.127	70.593
Supply Chain Operation	0.254	72.476	0.184	60.438
Supply Chain Purchasing	0.223	76.459	0.236	62.835

shows the importance and performance of all variables for sustainability and business profitability. For sustainability, the greatest importance variable, with a value of 0.450, is digitalization, and the greatest performance variable, with a value of 76.459, is purchasing. For business profitability, the greatest variable, with a value of 0.515, is also digitalization, and the greatest performance variable, with a value of 78.231, is distribution. For the policymakers, it is recommended to increase the performance of the low performers who are of high importance. For example, digitalization is the most importance variable for both sustainability and business profitability, but its performance is not the highest for both. Even for the business profitability, its performance is the least that needs to be enhanced. Figure 3 and Figure 4 below show a graphical representation of the values in the IPMA Table.

4.5. Predictive Relevance of the Model

The predictive relevance of the model is an advanced test in the SmartPLS, which estimates the prediction power of a model when the same model is tested in a context other than the current. The measure used for the predictive power is Q-square. A value of Q-square greater than zero is considered a good value for the primary data.

Table 14. Q-square.

	SSO	SSE	Q2
Supply Chain Purchasing	3065	3245.367	0.122
Supply Chain Distribution	3065	1245.223	0.167
Supply Chain Operation	3065	2248.411	0.114
Supply Chain Integration	3065	2628.566	0.142
Digitalization	2245	2452
Sustainability	2452	2180.707	0.111
Business Profitability	2452	2642.946	0.138

shows a value of 0.111 for sustainability and 0.138 for business profitability. The above values denote that if the same model is tested in a context other than the researcher, it has a prediction power of 11.1% for sustainability and 13.8% for business profitability.

4.6. Multi-Group Analysis

MGA stands for multi-group analysis, an advanced test used in the SmartPLS, which is used to estimate the effect of a categorical variable on the relationships of the study. This test compares the two categories between a group. Below is the MGA analysis based on gender, where the table compares the relationships of the study based on the male and female. The measure used for the significance of the effect is the p-value. The threshold value for the p-value is 0.05 or less.

Table 15. MGA (gender).

Relationships	β-Diff (Male-Female)	p-Value
Digitalization -> Supply Chain Integration	0.088	0.545
Digitalization -> Supply Chain Operation	−0.003	0.861
Digitalization -> Supply Chain Purchasing	−0.069	0.535
Digitalization -> Supply Chain Distribution	−0.025	0.744
Supply Chain Integration -> Business Profitability	−0.046	0.588
Supply Chain Integration -> Sustainability	0.034	0.735
Supply Chain Operation -> Business Profitability	−0.048	0.476
Supply Chain Operation -> Sustainability	0.016	0.886
Supply Chain Purchasing -> Business Profitability	0.023	0.345
Supply Chain Purchasing -> Sustainability	0.011	0.633
Supply Chain Distribution -> Business Profitability	0.031	0.422
Supply Chain Distribution -> Sustainability	0.012	0.623

shows that all the relationships have a p-value greater than the threshold, indicating no significant difference between males and females based on the study relationships.

5. Discussion

This study examines digitalization’s impact on supply chain profitability and sustainability by mediating supply chain integration, supply chain operation, supply chain purchasing, and supply chain distribution in the agribusiness industry of Pakistan. This study found that the digitalization of the supply chain significantly impacts sustainability and business profitability. The results further found that digitalization has a more significant impact on sustainability than business profitability.

The first hypothesis claims that digitalization significantly impacts supply chain integration. This study’s results found a significant impact of digitalization on supply chain integration with a p-value of less than 0.05 and a t-value greater than 1.96. Looking at the past literature, we also find the same findings from the researchers [77]. The second hypothesis claimed that digitalization will lead to better supply chain operation. However, the results of this study also support the same arguments, having p- and t-values of 0.045 and 1.848, respectively. Different studies conducted on the same relationship based on different context by different researchers also show the same findings having a significant impact of digitalization on supply chain operations [78,79]. The third hypothetical statement of this study claims that digitalization will lead to better purchasing in the supply chain departments of the agribusiness firms of Pakistan. This study also found a significant impact of digitalization on better purchasing in the supply chain departments of the agribusiness firms of Pakistan, with a p-value of 0.003 and a t-value of 2.976. The past literature based on the importance of digitalization on purchasing in different sectors in different contexts also shows the same findings, where it was found that after the implantation of digitalization, the purchasing process of the firms became very efficient in comparison to the traditional purchasing processes [80,81].

The fourth hypothesis claims digitalization will lead to a better supply chain distribution system. From the findings of this study, it was concluded that it also supports the argument, having p- and t-values of 0.000 and 4.316, respectively. The results of past research based on the same relationship conducted in different contexts also have the same findings. Although these studies were conducted in different contexts, their findings are in line with the results of this study [82,83,84]. The fifth hypothesis claims that after the digitalization of the supply chain department, they will integrate better, leading to better business profitability. The results of this study also support the argument that better and proper integration will lead any firm towards profitability with p- and t-values of 0.000 and 6.382, respectively. Past literature based on the different industries and geographical contexts also found that proper supply chain integration is a primary factor for the firm’s profitability [85,86,87]. The sixth hypothesis of the study claims supply chain integration after digitalization’s implantation will lead to business sustainability. This study’s findings support the argument claim with p- and t-values of 0.000 and 3.621, respectively. However, the past literature on integration also argues that a better and proper integration system at any firm will lead the firm toward sustainability. However, these studies have been conducted in different contexts and geographical regions, but their findings are relevant to this study [88].

The seventh hypothesis claims that digitized supply chain operations will lead to business profitability. However, the results of this study do not support the hypothesis of having p- and t-values of 0.528 and 0.631, respectively. The past literature based on this relationship argues both types of results, where some context has significant findings and some context has insignificant findings. The reason for this insignificance may be that Pakistan is a developing country where industrial digitalization is in its initial stage and has not impacted the whole industry yet [89,90,91]. This study’s eighth hypothesis argues that digitalized supply chain operation will lead firms toward sustainable practices. The findings of this study also support the argument that digitalized operations in the supply chain lead towards better sustainable practices, having a t and p-value of 3.012 and 0.003, respectively. However, the literature from past studies based on this relationship, conducted in a different context, supports the argument [92,93]. The ninth hypothesis claims that digitalized supply chain purchasing will lead to business profitability. However, the results based on this study’s findings did not support the argument with t- and p-values of 1.414 and 0.157, respectively. The past literature based on the purchasing process of different firms based on various industries in different geographical contexts also supports the said arguments that a better and more efficient purchasing process will lead the business toward profitability [94,95,96].

The tenth hypothesis argues that digitalized supply chain purchasing will lead to sustainability. However, this study’s results showed a significant impact with t and p values of 2.465 and 0.014, respectively. Different researchers from different industry backgrounds also have the same findings. However, those studies have been conducted in different contexts [97,98,99]. The eleventh hypothesis argues that digitalized supply chain distribution will lead to business profitability. However, the results do not support the argument having t- and p-values of 0.246 and 0.806, respectively. However, the past literature also has the same nature of findings. Some studies conducted in developed countries have significant findings, while those in developing countries mostly have insignificant findings [100,101]. The reason for this may be the level of development. As Pakistan is a developing country, these results are also expected here. The twelfth and the last hypothesis argued that digitalized supply chain distribution will lead towards sustainability. The results of this study support the said arguments with t- and p-values of 1.953 and 0.014, respectively. The past literature also supports the said hypothesis in different geographical contexts [102,103,104]. The results show that three hypotheses were rejected, although they are well established and supported by the literature. Due to factors such as low technology adoption, infrastructure problems, cultural attitudes, security concerns, cost of implementation, legal challenges, and the selected agri-food industry, these hypotheses were not supported in Pakistan. Further research is needed to explore why these hypotheses were not supported.

The impact of digitalization on business strategies in sustainable supply chains proved significant. Due to its ability to facilitate data-driven decisions, real-time monitoring, and increased transparency, it has completely changed businesses’ approach towards sustainability. Businesses can use digital tools to manage resources more effectively and monitor the adverse environmental effects of their supply networks. It will optimize logistics, minimize waste, and lessen carbon emissions. Digitalization has additionally established new channels for communication and working with stakeholders, customers, and suppliers, strengthening the combined devotion towards sustainability. Sustainable supply chains are a significant differentiator for the shift in business strategy, in today’s highly competitive environment which promotes green practices and increases profitability and agility [105].

The COVID-19 pandemic induced a radical change in the strategies and behaviors of the food supply chain, exposing its vulnerabilities and stressing the importance of adaptability and robustness [106]. Businesses embraced digitalization, diversified their suppliers, gave attention to safety, and focused on sourcing locally in response to unusual disruptions. The supply chain started to embrace technology rapidly to increase efficiency and lessen dependency on human labor. The pandemic made logistics approaches more responsive and adaptive by highlighting the value of agility along with the ability to quickly respond to changing demands from customers. It is expected that the strategies and practices of the food supply chain business would be influenced by the insights acquired during the pandemic for a long time and digitalization of the supply chain is one of them.

5.1. Implications

The digitalization of the supply chain significantly impacts the profitability and sustainability of agri-food businesses. Digitalization has become crucial to driving success and assuring sustainability, from improved efficiency and consumer satisfaction to decreased costs and more resilience. Theoretically, digital supply chains should follow a comprehensive strategy prioritizing data integration, flexibility, and collaboration. Organizations must invest in technology, training, cybersecurity, and change management to successfully install and gain the benefits of digitalization. The following theoretical, practical, and managerial implications will enhance the agri-food supply chain’s performance and sustainability.

Theoretical Implications: The study has the following theoretical implications for the agri-food supply chain.

• Supply chain digitalization focuses on system thinking. Businesses must comprehend how various supply chain elements are interrelated and how changes in one area may impact the entire system. This theoretical consequence encourages a wider view of supply chain management, which results in better decision-making and optimization.
• The need for information integration is also evident from the theoretical debates. Better analysis, forecasting, and planning are made possible by a vast and linked data ecosystem, which enhances the performance of the supply chain as a whole.
• Agility and flexibility are other factors under theoretical discussions in digital supply chains. Businesses should be ready to react swiftly to shifting consumer preferences, market dynamics, and unforeseen disruptions. This involves adopting flexible procedures and technological advancements that provide quick modifications.
• Supply chain visibility is another theoretical implication of digitalization. Businesses can spot bottlenecks, streamline processes, and increase overall supply chain efficiency by having real-time access to data and insights at every level of the supply chain.
• The need for collaboration among supply chain participants is emphasized in theoretical debates. As a result of better communication and data sharing made possible by digitalization, connections between various parties in the supply chain are strengthened and work towards greater cooperation.

Practical Implications for Supply Chain Firms: The study has practical implications for agri-food supply chains.

• To ensure successful digitalization, effective change management strategies are necessary.
• Businesses must invest resources to adopt modern supply chain management software and hardware to achieve the necessary degree of integration and efficiency.
• The personnel must be upskilled and trained to successfully implement digital supply chain practices.
• Investment in cybersecurity is also needed to protect data from cyber-attacks and threats in the digitalized supply chain.
• Business organizations must follow the regulations and laws to avoid any legal consequences regarding data privacy.
• For supply chain data to be as valuable as possible, establishing data ownership, quality standards, and exchange procedures is crucial.
• Efficient coordination and communication are necessary to ensure alignment and compatibility across multiple parties.
• The supply chain must be continually assessed and improved to remain effective, efficient, and flexible.

Managerial Implications: The study has the following implications for the agri-food industry that guide managers to take strategic decisions.

• The findings guide managers to invest in appropriate digital technology to enhance supply chain processes and achieve business profitability and sustainability.
• The results also guide managers to make flexible supply chain systems according to the changing demand of the market. Such supply chain systems are only possible through digitalization.
• Managers should focus on development and training to ensure the staff has the skills to use and manage the technology properly.
• Managers should take advantage of the personalized client interactions that digitalization makes possible to increase customer happiness through customized goods offerings and better delivery services.
• The study also guides managers to recognize how digitalization may help achieve sustainability and how they should implement green technologies and practices to enhance sustainability.

5.2. Digitalization of Supply Chain and Sustainable Development Goals (SDGs)

Supply chains using digital technology are more flexible, quick to react, and sustainable [107]. Businesses can encourage SDGs and reduce environmental impact by adopting sustainable supply chain operations and distribution practices [108]. Sustainable business practices, such as energy-efficient transportation and sustainable procurement, improve a company’s brand, draw in environmentally aware customers, and promote economic growth. Digitalization’s positive impacts on the supply chain have multiple implications for businesses’ sustainability and profitability [109]. Businesses can enhance their operations while contributing to the global drive for a more sustainable future through the achievement of the Sustainable Development Goals. As given in the following lines.

• SDG 9 (Industry, Innovation, and Infrastructure): Digitalization improves supply chain integration by encouraging seamless communication and data exchange among stakeholders [110]. This helps achieve SDG 9 since digitalized supply chains provide reliable, effective infrastructure that promotes innovation and sustainably develops the economy.
• SDG 8 (Decent Work and Economic Growth): SDG 8 is aligned with effective supply chain communication made possible by digitalization. Improved decision-making, less operational inefficiencies, and enhanced productivity result from better information interchange and real-time communication [110]. They also support sustainable economic growth and excellent employment possibilities.
• SDG 12 (Responsible Consumption and Production): Automation and data-driven insights from digitalization optimize supply chain operations to comply with SDG 12 [110]. Businesses can encourage sustainable manufacturing and production methods and responsible consumption patterns by reducing waste, resource usage, and environmental effects.
• SDG 11 (Sustainable Cities and Communities): Digitalization of supply chain distribution supports SDG 11 as it facilitates effective logistics and transportation, lessens traffic congestion, and reduces carbon emissions [110]. Sustainable ways of distribution can make cities cleaner and more habitable.

6. Conclusions

The research investigated the relationships between digitalization and supply chain components and their effects on business profitability and sustainability. The findings validated several hypotheses and showed that supply chain operation, integration, purchasing, and distribution are positively impacted by digitalization. The study also found that increased levels of supply chain integration benefit sustainability and profitability. However, there was no evidence to support the theories regarding the effects of supply chain operation, purchasing, and distribution on profitability. The findings also show the vital role of digitalization in improving supply chain effectiveness and its positive impacts on sustainability. The study offers insight for supply chain managers, emphasizing digitalization to improve business profitability and sustainability.

6.1. Recommendations

The following are some important recommendations for digitalizing the agri-food supply chain to increase business profitability and sustainability.

• Make a thorough digital transformation according to the firm’s objectives and the need for a supply chain that covers the whole agri-food supply chain ecosystem and is adaptable to market demands.
• Allocate enough resources for digital technology and tools. This is necessary for taking data-driven decisions, optimizing operations, identifying trends, and predicting demands.
• Implement digital platforms for communication tracking supplies and goods.
• Enhance integration and collaboration with partners and stockholders throughout the supply chain networks.
• Use digital technologies across supply chain networks to improve demand, transport inventory management, etc.
• Incorporate sustainable practices into the supply chain operations to make it eco-friendlier.
• Implement measures for cyber security.
• Ensure training for the workforce according to the requirement of digital tools.
• Accept that digitalization is a continuous process and demands flexibility and agility. Keep up with industry trends and new technology to continually develop and improve the digitalization of the supply chain.

6.2. Limitations and Future Research Directions

Limitations are the boundaries that decide the scope of any study, and they will open new doors for the new researchers to work out further. The study has several limitations, but some important ones are given below.

• This study was only based on a quantitative design, which tested a model based on pre-established theories. Researchers can conduct this with a qualitative design to further explore new factors contributing to digitalization, which leads them to sustainability and firm profitability.
• The study’s scope was limited to only the agribusiness sector of Pakistan. Researchers can extend the boundary of the study into different sectors of Pakistani industry as well as the agribusiness sectors of other countries.