Page 55 - CMA Journal (May-June 2025)

Focus Section

Bureaucratic hurdles and delays in approvals hinder the 4) Education and Capacity Building - Higher education
launch of new projects and discourage sustainable institutions and vocational training centers should align
innovation practices. their curricula with evolving labor market needs,
especially those related to sustainability and
5) Low Digital Literacy and Technology Adoption -
Despite advancements in digitalization, many Pakistani innovation. Continuous professional development and
businesses still struggle with limited technical skills training are crucial to keeping the workforce
know-how. Concerns over unfamiliarity and data competitive.
security are major reasons behind their resistance to 5) Public-Private Partnerships - Collaboration between
adopting digital tools. government, academia, and the private sector can
become a strong driver of innovation. Joint research
6) Lack of Awareness of Innovation Benefits - Resistance
to innovation and sustainable practices is often due to a programs, technology incubators, and pilot initiatives
lack of understanding of their potential benefits. Many can accelerate the development and adoption of new
companies fail to recognize how innovation can ideas.
enhance operational efficiency, cut costs, and improve 6) Cultural Shift Toward Agility - Organizational culture
competitiveness. As a result, they miss out on should value creativity, adaptability, and lifelong
opportunities for long-term growth. learning. Even when innovative efforts do not yield
immediate success, recognizing and rewarding such
Impacts on Business Sustainability initiatives fosters a mindset that embraces change and
The consequences of resistance to change are far-reaching: encourages continuous improvement.
• Stagnation: Organizations that resist change struggle Case Examples from Pakistan
to meet evolving consumer demands, resulting in
reduced competitiveness in the market. Several forward-thinking companies in Pakistan are leading
the way in innovation and sustainability:
• Talent Loss: High-caliber professionals tend to seek
more progressive environments, leading to a growing • Bykea: A regional ride-hailing and delivery platform
skills gap within stagnant organizations. that leverages technology to provide affordable
transport while creating job opportunities.
• Global Marginalization: Investors and global supply
chains are increasingly emphasizing Environmental, • Jazz – Digital Financial Inclusion: A leading fintech
Social, and Governance (ESG) criteria. Pakistani platform expanding access to digital payments for
businesses risk being overlooked if they fail to align millions of users.
with these evolving standards. • Sazgar Engineering – EV Manufacturing: Partnered
• Reduction in Profitability: As consumers shift toward with Chinese firms to introduce affordable electric
more innovative businesses, outdated strategies lead to vehicles, reducing reliance on fossil fuels.
declining financial performance. These examples demonstrate that transformative
• Inefficient Operations: Companies that resist innovation is both possible and beneficial within the
automation and streamlined processes face rising Pakistani business landscape.
operational costs compared to their more adaptive Conclusion
competitors.
One of the most significant obstacles to innovation is
Strategies to Overcome Resistance and resistance to change, which threatens the long-term
viability of Pakistani companies. This resistance hinders
Foster Innovation
progress at a time when adaptability is not only necessary
1) Leadership and Change Management - Business but essential. It is deeply rooted in economic, cultural, and
leaders must champion change initiatives by institutional dimensions. Companies in Pakistan must
articulating a clear vision, actively engaging confront and overcome this reluctance to ensure a
stakeholders, and demonstrating unwavering sustainable future.
commitment. Leadership training equips managers Innovation should not only be seen as a strategic
with the tools to address resistance and cultivate a
culture of innovation. development tool but also as a social and environmental
responsibility. By fostering a culture of change, investing in
2) Policy Incentives and Institutional Support - The human capital and technology, and aligning with global
government plays a vital role in promoting innovation sustainability trends, Pakistani companies can not only
through tax incentives, grants, and funding for endure but thrive in the twenty-first century.
innovative projects. Transparent regulations and About the Author: The author is an Associate Member of ICMA and
streamlined bureaucratic procedures can further currently serves as the CEO of Orbit.AR (Private) Ltd, a leading
encourage industry participation and ease compliance.
company in the healthcare industry operating under the brand
3) Access to Finance and Infrastructure - To take name ORBIT. He also heads Ali Raza Engineering Co., a C-1 Category
strategic risks, companies need financial instruments firm specializing in high-profile government construction projects.
tailored to support innovation—such as venture capital With a strong background in both healthcare products and
funds, innovation grants, and small business loans. engineering, he is committed to driving innovation and excellence in
Strengthening digital infrastructure and investing in these critical sectors.
R&D hubs are also essential to drive innovation forward.
ICMA’s Chartered Management Accountant, May-June 2025 53