Page 54 - CMA Journal (May-June 2025)

Focus Section

Resistance to Change: A Threat to

Business Sustainability in Pakistan

In today’s dynamic world economy, innovation is the lifeline don’t adopt sustainable
of survival. It is not just a weapon that gives you the edge business strategies risk
but has become indispensable. However, one of the biggest falling into harsh
obstacles to innovation is still change resistance. This consequences in a
resistance may be psychological, organizational, or cultural, world economy that is
emanating from a whole range of sources. Resistance can undergoing radical
block the way very effectively, especially in the case of transformation.
emerging economies such as Pakistan. The adoption of Mirza Ali Raza Baig, ACMA
breakthrough sustainability business practices is necessary Resistance to CEO of Orbit.AR (Private) Ltd.
in a time of economic uncertainty, environmental Change in the Proprietor, Ali Raza
challenges, and increasing global competition. Pakistani Engineering Co.
“Unfortunately, the continual resistance to change is putting Business Context
these measures under threat and causing harm not to
specific enterprises but to the basic economic development 1) Economic Uncertainty and Risk Aversion - Pakistan’s
of the country.” economic scenario is highly unstable, reflected in
continuous currency fluctuations, rising inflation, and
What Is Resistance to Change? inconsistent policy directives. Under these pressures,
Resistance to change is the rejection of a new idea, enterprises often focus on short-term survival, neglecting
innovation, new system, or new policy. This resistance may future-oriented innovation strategies. This environment
occur at all levels of the organization in two forms: active fosters a risk-averse culture, where flexibility is viewed as a
and passive. A number of reasons can be cited for this challenge rather than an opportunity. Such a mindset
opposition: lack of skill or training to adapt to changes discourages proactive engagement and innovation,
without conflict; frustration with weakening long-term resilience.
current practices; fear and anxiety Table: The Interdependence of Innova on and Sustainability in Pakistan
about the unknown; or skepticism Innova on as a Catalyst for Sustainability Challenges Driving
about leadership and poor Sustainability in Pakistan Innova on in Pakistan
communication. These challenges Implementa on of automa on and process Persistent energy constraints are driving the
are further aggravated by op miza on to improve energy efficiency in shi to renewable solu ons like solar,
bureaucracy, the conventional industrial processes. biogas, and hybrid systems.
Incorpora ng water-saving technologies into
Severe water shortage is driving the
culture of doing business, and a the manufacturing, tex le, and agricultural adop on of drip irriga on, wastewater
lack of trust in innovation in the industries. recycling, and effec ve water management
Pakistani context. Many technologies in important sectors.
businesses, especially small to Enhancements to capacity-building ini a ves Lack of technical knowledge about
sustainable methods.
and policy-driven industry training.
medium-sized companies (SMEs),
operate in a competitive environment and at short margins,
requiring profitability and, in many cases, see change as 2) Cultural Conservatism and Hierarchical Structures -
high risk rather than a strategic necessity. Many Pakistani businesses are family- owned and follow
Innovation and Sustainability Go Hand in Hand rigid hierarchical models. Junior employees typically have
limited access to channels for sharing ideas or grievances
Today, innovation and sustainability are no longer two due to centralized decision-making. This suppresses
separate issues in the business world; they are two sides of creativity and initiative among younger staff, who often
the same coin. Innovation is the trigger for sustainability, remain silent despite having valuable insights.
allowing companies to improve operational performance,
reduce their environmental footprint, and create products 3) Limited Access to Capital and Resources - Innovation
and services that fulfill changing consumer needs. in research, development, technology, and training
Businesses are under increasing pressure to innovate, to requires significant investment. However, accessing
change, and to tweak strategies continuously in the face of finance is a major hurdle, especially for small and
ongoing sustainability issues in order to remain competitive medium-sized businesses (SMBs). These firms often lack
and steer themselves in and out of new market and sufficient collateral, making it difficult to secure loans
regulatory hurdles. For Pakistani businesses, it is important through traditional lending mechanisms.
to work across industries. The country has many problems, 4) Weak Institutional Support and Regulatory Barriers
such as a severe lack of energy and water, pollution, and the - Government policy and institutional support play a
impact of climate change. Besides regulatory action, we critical role in fostering innovation. Unfortunately,
need forward-looking leadership and fresh thinking from Pakistan’s regulatory framework is often unclear and
business to solve this thorny set of problems. Firms that inconsistent.

52 ICMA’s Chartered Management Accountant, May-June 2025