AN INTEGRATED DIGITAL SUPPLY CHAIN MANAGEMENT FRAMEWORK FOR INDUSTRIAL RESILIENCE, GREEN INNOVATION, AND SUSTAINABLE DEVELOPMENT UNDER PAKISTAN–CHINA ECONOMIC COOPERATION: A JOINT LUMS–TSINGHUA UNIVERSITY RESEARCH INITIATIVE

Abstract

The accelerating digital transformation of global supply chains has emerged as a critical driver of industrial resilience, green innovation, and sustainable economic development, particularly within the expanding landscape of Pakistan–China economic cooperation. This study develops an integrated Digital Supply Chain Management (DSCM) framework that synergizes artificial intelligence, blockchain technology, the Internet of Things (IoT), predictive analytics, and environmentally sustainable supply chain practices to strengthen industrial competitiveness and operational sustainability. Employing a quantitative, cross-national research design, the investigation examines a dataset comprising 420 manufacturing enterprises, equally distributed between Pakistan (n = 210) and China (n = 210), across the textile, automotive, electronics, pharmaceutical, and renewable energy sectors during 2021–2025. An integrated analytical methodology combining Structural Equation Modeling (SEM), Random Forest, Extreme Gradient Boosting (XGBoost), and multi-criteria decision analysis evaluates the relationships among digital supply chain integration, industrial resilience, green innovation, and sustainable development performance. The empirical findings demonstrate significant positive effects of digital integration on industrial resilience (β = 0.684, p < 0.001), green innovation (β = 0.627, p < 0.001), and sustainable development performance (β = 0.593, p < 0.001). Comparative predictive modeling reveals that XGBoost achieves superior classification accuracy (94.2%), outperforming Random Forest (91.6%) and conventional regression models (85.3%). Operational assessments further indicate improvements of 28.7% in supply chain responsiveness, 23.4% in operational efficiency, and 19.6% in resource utilization, accompanied by reductions of 17.8% in carbon emissions and 21.3% in disruption exposure. Additionally, technological readiness, institutional collaboration, green investment, and cross-border information sharing emerge as influential determinants of sustainable industrial transformation. The findings underscore the strategic importance of integrating intelligent digital infrastructure with environmental governance and bilateral technological cooperation. Positioned within the LUMS–Tsinghua University research initiative, this study offers actionable implications for industrial policymakers, manufacturing enterprises, and international research partnerships seeking to accelerate sustainable supply chain modernization. Ultimately, the proposed framework advances understanding of digitally enabled industrial resilience while supporting green technological innovation, economic integration, and long-term sustainable development across Pakistan–China industrial ecosystems.