ADOPTION OF SMART ENERGY MANAGEMENT SYSTEMS AND INDUSTRIAL ENERGY EFFICIENCY: THE MODERATING ROLE OF ORGANIZATIONAL TECHNOLOGICAL READINESS IN PAKISTAN

Abstract

Industrial energy consumption in Pakistan accounts for nearly 37% of total national energy use, making energy efficiency a critical priority for sustainable industrial development. The adoption of Smart Energy Management Systems (SEMS) has emerged as an important technological solution for monitoring, controlling, and optimizing industrial energy consumption. However, the effectiveness of these systems largely depends on the technological capabilities and readiness of organizations. This study examines the impact of SEMS adoption on industrial energy efficiency and investigates the moderating role of Organizational Technological Readiness (OTR) in the industrial sector of Pakistan. Using a quantitative research approach, data were collected through a structured questionnaire from 286 managers and technical employees working in energy-intensive industries, including textiles, cement, and manufacturing firms. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed relationships. The results reveal that SEMS adoption significantly improves industrial energy efficiency (β = 0.48, p < 0.001). Furthermore, organizational technological readiness positively moderates the relationship between SEMS adoption and energy efficiency (β = 0.29, p < 0.01), indicating that firms with better technological infrastructure and skilled human resources achieve stronger efficiency outcomes. The findings highlight the importance of technological preparedness, digital infrastructure, and managerial support in maximizing the benefits of smart energy systems. The study offers practical implications for policymakers and industry leaders to promote digital energy solutions for sustainable industrial development in Pakistan.