“Kazakhstan’s Dairy Sector: Greening the Economy Through Innovation and Clean Production”

List of abbreviation

GEO

Green entrepreneurial orientation

CP

Clean production

SCL

Supply chain learning

SD

sustainable development

1 Introduction

Kazakhstan’s dairy business has enormous modernization potential including dairy production moves from conventional methods to a high-tech sector this dairy business has enormous modernization potential as global agriculture (Aimen et al. 2022; Tsapova et al. 2025). However, dairy business faces many challenges including inefficiencies in production resource consumption and quality control. These change presents opportunity for creative solutions to address these issues (Gu et al. 2025; Tsapova et al. 2025). Moreover, the digital revolution in agriculture especially dairy helps reduce risks adjust to changing weather patterns and increase milk production (). Lowering production costs raising product quality and boosting competitiveness through resource efficiency and science-based methods are the main objectives of digitization in Kazakhstan’s dairy industry (Ali & Govindan 2023).

Additionally, in central Asia environmental issues have increasingly impacted vulnerable populations over the last two decades especially those in rural or isolated areas (Liverman 2013). And key sources of pollution include industrial and agricultural activities untreated waste and soil salinization. Moreover, change in climate already affecting the region and is expected to intensify in the coming years. Agriculture particularly dairy and livestock production plays a significant role in environmental degradation due to unsustainable practices such as overgrazing the over-exploitation of low-fertility land and expansion into ecologically fragile areas (Tsapova et al. 2025). This increased demand for dairy products driven by urbanization has exacerbated these issues as livestock production becomes concentrated on smaller land plots.

Dairy industry is necessary to food security and public health providing critical nutritional resources to a growing population (Grout et al. 2020). In the country like Kazakhstan by enhancing the efficiency of dairy farming through technological upgrades in processing plants is a key priority for the development of the agro-industrial complex (Smagulova et al. 2022). For all country imports are the substantial quantities of milk and dairy products significantly trailing developed nations in terms of dairy productivity and competitiveness. Despite of budgetary support the dairy sector has not seen significant improvements in milk production or product quality. Insufficient state incentives for innovation ineffective support programs and a lack of innovative focus have negatively impacted the dairy industry (Smagulova et al. 2022). High risks associated with adopting new technologies coupled with low profitability have made the sector unattractive to investors (Iram et al. 2021; Tsapova et al. 2025). Thus, to boost the efficiency of milk and dairy production activating its innovative potential is crucial.

The need for sustainability in resource-intensive industries such as dairy production has grown significantly especially in Kazakhstan. The country’s dairy industry faces a growing number of environmental challenges in the face of a global environmental crisis (Rimhanen et al. 2023). Dairy companies must comply with stringent regulations aimed at reducing environmental harm while also capitalizing on the opportunity to meet rising consumer demand for sustainable products. For Kazakhstan’s dairy sector adopting sustainable practices is not just a choice but a necessity for achieving low-carbon growth updating outdated economic models and fostering ecological balance (Nasrollahi et al. 2020). By integrating CP strategies dairy companies in Kazakhstan can lessen their environmental impact improve resource efficiency and reduce costs all while enhancing their competitiveness in domestic and international markets (Borghesi et al. 2015). In an era marked by climate change and resource scarcity CP is essential for aligning the dairy sector with global sustainability objectives and underscores the urgent need for Kazakhstan to adopt sustainable practices in its dairy industry (Zhou & Wang 2023).

The construct “green economy opportunities” (GEO) describes how a business actively seeks out and seizes eco-friendly possibilities (Elfaleh et al. 2023). As a major driver of innovation and leadership in Kazakhstan’s dairy industry GEO encourages businesses to voluntarily use sustainable practices (Janahi et al. 2023). Dairy companies are positioned to take advantage of green business prospects by GEO which fosters a company culture centered around long-term environmental goals. Even though GEO is in favor of a move toward sustainability without more tools and resources it might not be enough to accomplish comprehensive sustainable development. Another essential component for attaining sustainability in the dairy sector is supply chain learning (SCL). In the very resource-intensive process of dairy production sustainable development necessitates teamwork knowledge-sharing and supply chain integration in addition to an entrepreneurial attitude (Bossle et al. 2016). Dairy companies participate in SCL by closely collaborating with supply chain partners to share knowledge and foster group innovation in the direction of sustainability. Leveraging SCL is critical for Kazakhstan’ dairy farmers to overcome resource constraints and promote innovation in sustainable methods. Despite its significance SCL’s contribution to resolving the environmental issues raised by the dairy industry has not received enough attention. The objective of this research is to comprehend the connection between GEO and sustainable development emphasizing the role that SCL plays as a mediator in this relationship (Nasrollahi et al. 2020). The study also presents CP as a moderating factor that strengthens the effect of GEO on SCL. By integrating sustainability into the daily operations of dairy companies CP acts as a catalyst to improve resource efficiency and reduce waste hence fortifying the bond between GEO and SCL (Janahi et al. 2023).

This study aims to determine if dairy companies with strong GEO are more likely to implement SCL practices and thus, achieve sustainable growth through cleaner production methods by using CP as a moderator (Ameer & Khan 2023). By pushing businesses to concentrate on lessening their environmental impact and promoting cooperation with supply chain partners for eco-friendly innovations CP improves the atmosphere for supply chain learning (Shehzad et al. 2023). As a result, CP balances out GEO’s initiative and guarantees that knowledge-sharing initiatives in the supply chain are focused on accomplishing certain sustainability objectives (Nasrollahi et al. 2020; Ameer & Khan 2023). The dairy business in Kazakhstan will benefit greatly from this research since it examines major facets of sustainability and green innovation which are becoming more and more significant in today’s environmentally concerned market. By integrating GEO with SD the study addresses the following research questions 1) Does GEO has impact on SD? 2) Does SCL plays its role as mediator between GEO and SD? 3) Does the Cleaner production acts as moderator between GEO and SCL? These results would be especially pertinent as Kazakhstan works to fulfill its international sustainability obligations such as the Sustainable Development Goals (SDGs) of the UN and shift to a greener economy.

2 Literature Review and Hypotheses Development

Significant sustainability issues still face the worldwide dairy industry requiring changes in food production and consumption practices to minimize ecologically harmful by-products and increase the production of nutrient-rich dairy products. Innovation in production techniques is necessary to meet these objectives (Granato et al. 2023; Shehzad et al. 2023). To guarantee a sufficient supply of dairy products especially in the United Kingdom the food supply chain needs to implement a circular strategy that incorporates sustainable and inventive methods like cutting-edge technologies for managing food waste. Discursive coalitions and cultural hegemony present obstacles for these advances in supply chains nevertheless (Else et al. 2022). Six European countries – Germany France Italy Poland Spain and the Netherlands – account for over 73 % of the region’s dairy production. The European Union the world’s second-largest milk producer and leading cheese exporter has implemented cutting-edge technologies to monitor wastewater reduce water usage and improve resource efficiency in the dairy sector. Given that dairy production consumes vast amounts of water and generates heavily polluted wastewater the adoption of innovative closed-loop processes is a critical strategy for mitigating environmental impacts (Glavas & Fitzgerald 2020).

In the United States the dairy industry has also experienced volatility in pricing and market dynamics exacerbated by the COVID-19 pandemic. The pandemic heightened product price volatility although it also reduced the uncertainty caused by information gaps related to innovation (Ellis et al. 2020). The US dairy sector the fourth-largest agricultural sector with an annual turnover of $38 billion has faced sustainability challenges due to changes in farm numbers herd sizes milk quality and management practices all of which have impacted the sector’s Overall, sustainability (Owusu-Sekyere et al. 2022). Water scarcity a growing concern for the sustainable development of many national economies demands a comprehensive assessment of the dairy value chain. This includes evaluating the economic efficiency of feed production and packaging design considering the environmental impact throughout the entire dairy production chain (Lindena & Hess 2022). Despite its contribution to environmental pollution the global dairy industry continues to play a crucial role in enhancing global food security. This study aims to review both domestic and international scientific literature to examine the theoretical and methodological foundations for managing innovation in dairy industry enterprises highlighting the relevance and timeliness of this research. The expansion of corporate social responsibility strategies – supported by dairy processors civil society initiatives and government policies – has been instrumental in advancing the organic dairy sector in the Netherlands. These collaborative efforts represent a significant breakthrough in sustainable dairy production. Thus, on the basis of this information we built this conceptual framework (see Figure 1).

Figure 1:

Conceptual framework. (Source: prepared by the author).

3 Green Entrepreneurial Orientation and Sustainable Development

The concept of Green Entrepreneurial Orientation (GEO) stems from the integration of entrepreneurial orientation theory with green entrepreneurship. Other studies like those of Arruda (1999) suggest that GEO includes both initiative and environmental orientation while Cohen and Winn (2007) emphasize the importance of social and environmental orientation. Becker (2010) further divides GEO into innovative and social dimensions. Most studies drawing on the work of Covin and Slevin (1989) and later research by Wiklund and Shepherd (2003) as well as Iram et al. (2025) combine multiple dimensions of entrepreneurial orientation into a singular concept. GEO Therefore, represents a distinct strategic and decision-making model that is complex and dynamic.

Moreover, entrepreneurial orientation is recognized for its direct and indirect influence on corporate development shaping how firms pursue growth and strategic opportunities (Clark et al. 2024; Gu et al. 2025). This connection is well established as development itself is considered a core component of entrepreneurial orientation reflecting a firm’s capacity to innovate take risks and proactively adapt to changing environments (Covin & Slevin 1989; Iram et al. 2023). Companies practicing green entrepreneurship can harness resources to minimize environmental impact and leverage sustainable development opportunities (Iram & Bilal 2023). As a result, GEO enables firms to produce innovative green products and achieve sustainable development goals even as their ultimate objective remains economic success (Wales et al. 2023). While the primary focus may be on technology improvement and cost reduction GEO often facilitates green development in products services and processes (Ameer & Khan 2023).

4 Supply Chain Learning as Mediator

The concept of Supply Chain Learning (SCL) is rooted in inter-organizational learning theory and focuses on how organizations collaborate to generate collective knowledge (Chen et al. 2023). According to Abdullah et al. (2024), SCL is characterized as a learning behavior that occurs in three distinct phases: creation implementation and maintenance. It is applicable to all businesses. In a more comprehensive description Chen et al. (2023) said that SCL entails the communication and education among various supply chain participants in order to identify problems and provide solutions. SCL may be a strategic asset that improves supply chain performance according to recent research (Zhu et al. 2018). Furthermore, collaborative learning capacities among supply chain associates have a favorable impact on sustainable growth (Wang et al. 2023). Achieving green sustainable development independently is difficult for individual businesses and working with outside groups is essential to producing worthwhile green goods and services.

Moreover, entrepreneurial orientation as a high-level organizational learning mechanism encourages exploration and risk-taking during technological development. Recent studies have shown a positive relationship between entrepreneurial orientation and organizational learning (Fernández-Mesa et al. 2022; Gomes et al. 2022). Entrepreneurial-oriented firms foster a learning atmosphere promote learning behaviors and help define the direction and scope of corporate learning (Grant and Baden-Fuller 2004). However, these firms often prioritize rapid expansion sometimes lacking the necessary knowledge resources which leads them to seek external resources and develop inter-organizational learning such as SCL (Fernández-Mesa et al. 2022). Studies have indicated that entrepreneurial orientation positively impacts learning and resource sharing within alliances and can support the learning process within supply chains (Gomes et al. 2022). Consequently, firms with strong GEO can drive green development through SCL transforming entrepreneurial orientation into sustainable development. Based on this we propose the following hypotheses.

5 Cleaner Production as Moderator

Cleaner Production (CP) focuses on minimizing waste and emissions while maximizing the efficient use of materials and energy (Wu et al. 2024). Firms play a crucial role in implementing CP as they oversee the production process (Goren et al. 2024). Key strategies include identifying the sources of emissions and waste raising awareness about pollution prevention and establishing programs to improve resource efficiency and reduce emissions (Rasouli et al. 2023). Beyond awareness firms are expected to develop structured programs aimed at improving resource efficiency optimizing input usage minimizing environmental footprints and adopting technologies and practices that contribute to Overall, emission reduction (Shen & Zhang 2024). Such efforts not only support sustainability goals but also enhance operational performance reduce costs and improve competitiveness in an increasingly environmentally conscious market Researchers suggest that CP activities can significantly contribute to a country’s development and enhance the competitiveness of firms (Kjaerheim 2005; Shen & Zhang 2024). Consequently, CP supports sustainable development and helps firms achieve a green entrepreneurial orientation (GEO) in enhancing supply chain learning (Ortiz et al. 2023).

Furthermore, CP enables companies to adopt long-term planning and a holistic approach to production that integrates quality environmental sustainability working relationships human resources renewable materials energy use and profitability (Ferraz et al. 2024). By incorporating CP into their practices firms not only contribute to environmental sustainability but also position themselves to achieve sustainable green entrepreneurial orientations (GEO) (Ortiz et al. 2023). Supply chain learning (SCL) can have greater effects when CP is taken into account as a moderating factor between SCL and sustainable development (Rasouli et al. 2023). The incorporation of CP principles can improve resource efficiency pollution prevention and sustainable development when businesses participate in inter-organizational learning through SCL (Ortiz et al. 2023). This combination can increase a company’s capacity to use SCL to achieve better environmental results and sustained competitiveness.

6 Supply Chain Learning and Sustainable Development

Sustainability in the dairy business has received more attention in recent years and depending on the study’s focus this has led to a wide range of interpretations. As a result, dairy farming and production now have a broader grasp of sustainability (Rasouli et al. 2023). Sustainable development is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Ortiz et al. 2023). The environmental approach to sustainable development in the dairy sector places a strong emphasis on reducing the industry’s environmental impact.

Over the past few decades, the dairy industry has witnessed substantial social technological and environmental developments that have changed how businesses function (Cancino et al. 2018). As an intangible resource knowledge is essential to the success of sustainable dairy production operations. Sustainable practices which aim to lower carbon emissions and increase resource and energy efficiency are closely related to sustainable development in the dairy industry (Hottenrott et al. 2016). In the dairy industry economic advancement is closely tied to the organization’s responsibility to stakeholders the environment and future generations (Dhital et al. 2023). Green entrepreneurial orientation which integrates sustainability into business strategies highlights the vital role that dairy organizations can play in addressing sustainability-related challenges through creativity and innovation (Oelze et al. 2016). Sustainable development in dairy production also holds that the industry can positively influence sustainability outcomes by shaping policies and practices that support a greener future.

7 Methodology

A snowball sampling method was employed to recruit participants for the study targeting Kazakh citizens who voluntarily chose to participate. This was achieved by utilizing pre-existing social networks via social media platforms to distribute the survey link. The questionnaire received Ethical Approval from the University of Reading’s Ethics Committee. The primary data collection instrument was a structured questionnaire survey. All participants were provided with an information sheet and a consent form detailing the aims and objectives of the research. The original questionnaire was developed in English and subsequently translated into Kazakh. To ensure translation accuracy and natural linguistic flow the translation was independently reviewed and revised by a second person. Data collection occurred in two phases with an interval of approximately 40 days between them. Between October 12, 023 and November 12, 023 was the first phase (n = 290) and between December 10, 2023 and January 10, 2024 was the second phase (n = 314). The purpose of the two-phase data gathering approach was to investigate how participants’ opinions might be impacted by environmental conditions.

The questionnaire consisted of 22 questions and was split into four sections: Sustainable Development (SD) Clean Production (CP) Supply Chain Learning (SCL) and Green Entrepreneurial Orientations (GEO).

Informed consent: Informed consent was taken from all participants who agreed to participate in the study. Participants were informed that they could withdraw consent to participate at any time during the interview. All methods were performed in accordance with the relevant guidelines and regulations.

Ethical approval: The study obtained an Ethical Approval from the Ethics Sub-committee Office of the Research and development Almaty Technological University.

7.1 Measurement

The study’s questionnaire which included properly calibrated items for each construct was adapted from a number of reputable often mentioned sources.

7.2 Orientation Toward Green Entrepreneurship (GEO)

Five items were modified from the research of Zhao et al. (2011) Jiang et al. (2018) and Li et al. (2017) in order to measure GEO. “Our firm places a strong emphasis on green R & D technological leadership and innovation” is one example item from this scale.

7.3 Learning From Supply Chains (SCL)

Five questions that were taken from the works of Zhu et al. (2018) and Flint et al. (2008) are used to measure the SCL construct. This scale’s sample item is “We ensure that managers at our key suppliers continuously learn better methods to operate and serve us.”

7.4 Cleaner Production (CP)

Using a five-item scale developed from Cai and Li (2018) cleaner manufacturing is a technique targeted at decreasing the environmental impact of production processes and products. One of the sample items is: “Cleaner production has resulted in decreased waste emissions”.

7.5 Development that is Sustainable (SD)

The seven-item scale used to measure sustainable development was modified from a study by Baxter and Chipulu (2023). A prime example is: “We assess the future life cycle of materials used in our products and services.”

7.6 Data Analysis Interpretation and Results

7.6.1 Structural Equation Modeling

PLS-SEM a variant of Structural Equation Modelling (SEM) is a powerful multivariate method that integrates latent and observable variables to evaluate intricate theoretical models. A primary rationale for selecting PLS-SEM in this investigation is its adaptability to data that violate the assumption of normality and its robust efficacy with comparatively small sample sizes as emphasized by Chin and Newsted (1999). Furthermore, PLS-SEM is more adept at managing models with several independent variables intricate interactions and multicollinearity difficulties compared (Sarstedt 2008).

This technique is appropriate for both confirmatory and exploratory research rendering it optimal for investigations focused on developing and refining theoretical models. PLS-SEM was chosen to evaluate the measurement model for the reliability and validity of constructs as well as the structural model to examine hypothesized correlations. The increasing prevalence of PLS-SEM is further corroborated by its effective utilization in empirical studies in behavioral finance and entrepreneurship as seen by Andarsari and Ningtyas (2019). This method is particularly efficacious for research focused on predicting dependent variables (Roldán & Sánchez-Franco 2012) and for analyzing models that incorporate moderating effects between independent and dependent factors. Sarstedt (2008) further underscored its utility in examining complex models with elaborate paths. Owing to these strengths this study employed a two-step analytical method first with the examination of the measurement model and subsequently assessing the structural model (see Figure 2).

Figure 2:

PLS-algorithm. (Source: prepared by the author).

7.6.4 Structural Model

To strengthen the reliability of the statistical results the study utilized bootstrapping with 5,000 resamples – a conventional resampling method in PLS-SEM employed to evaluate the importance of path coefficients and indicator loadings. The utilization of 5,000 sub-samples aligns with the guidance of Hair et al. (2023) who assert that an increased number of resamples enhances the precision and stability of estimates yielding more dependable standard errors and confidence intervals. This degree of accuracy is particularly essential in intricate models such as those incorporating mediation or moderation effects (Hair et al. 2023; Iram et al. 2022).

Table 5 presents the results of the direct cause-and-effect relationships between the constructs which are also illustrated in Figure 3. A significant positive relationship was found between Green Entrepreneurial Orientation and sustainable Development (H1: β = 0.231 p = 0.000). This indicates that higher levels of green entrepreneurial orientation – reflected through environmentally conscious decision-making opportunity identification and proactive sustainability initiatives – contribute meaningfully to improvements in economic development within the dairy industry. The statistical significance suggests that these entrepreneurial practices are strongly aligned with value creation and competitive advantage in the sector. Therefore, H1 is accepted.

Table 5:

Direct relationships.

Hypothesis	Relationship	β	t-value	p-Value	Supported
H1	GEO -> SD	0.231	4.973	0.000	Yes
H4	SCL -> SD	0.676	15.367	0.000	Yes

1. Direct effects and hypothesis testing results. Source: Author’s own calculation.

Figure 3:

Model of influencing voluntary disclosure. (Source: Prepared by the author).

Similarly, a significant positive relationship was observed between Supply Chain Learning and Sustainable Development (H4: β = 0.676 p = 0.000). This finding reveals that enhanced learning across the supply chain – such as knowledge sharing continuous improvement and adaptation to market or environmental changes substantially enhances the economic development outcomes. The strong coefficient reflects that firms capable of absorbing and transferring knowledge more effectively are better positioned to improve efficiency sustainability and overall, economic performance. Consequently, H4 is also accepted.

8 Discussion

In the context of the Kazakhstan dairy industry this first objective focuses on the influence of GEO on sustainable development with particular emphasis on the underlying mechanisms at play. The process established the positive relationship between GEO and SD articulated (H1). Which means if a dairy enterprise possesses strong Green entrepreneurial orientation it moves towards sustainable development and these finding are supported by the finding of Oelze et al. (2016) and. Moreover, green-oriented firms tend to adopt environmentally responsible practices invest in eco-innovation and align their strategies with long-term ecological and social goals (Gu et al. 2025).

Secondly, we examined the mediating role of SCL between GEO and SD represented as (H2) which indicates partial mediation. Which means Supply chain learning partially mediates the relationship between green entrepreneurial orientation and sustainable development as they already achieve direct strong relationship and these findings are related to the findings of Shan et al. (2020). In other words, green-oriented firms naturally progress toward sustainable development but their ability to learn share knowledge and adapt across the supply chain strengthens this progression even more (Luan et al. 2025). Additionally, we assess the direct relationship between SCL and SD which is also positively correlated Thus, supporting (H4). Supply chain learning enhances sustainable development by promoting efficient resource management and reducing waste through continuous improvement practices. By integrating sustainability principles into supply chain strategies organizations can foster environmental stewardship and social responsibility while driving economic growth (Yilmaz & Habip 2025).

Finally, we consider the moderating effect of CP between GEO and SCL demonstrating a strong moderation that substantiates (H3). This moderation occurs because clean production practices create an enabling environment that encourages firms with green entrepreneurial intentions to engage more actively in knowledge sharing continuous improvement and collaborative learning across their supply chains (Shen & Zhang 2024; Iram et al. 2019). These results are further supported by the findings of Yang et al. (2024). Moreover, dairy companies are increasingly implementing Green entrepreneurial orientations (GEO) and clean production (CP) as a strategic response to a number of factors such as changing consumer expectations international market competition government regulations and global trade trends (Akhmedyarov et al. 2023; Gu et al. 2025).

According to Dhital et al. (2023) these procedures are essential for tackling the dairy industry’s major environmental problems which include resource depletion waste production and carbon emissions. The results show that these approaches have a typically beneficial impact on the long-term growth of dairy companies (Li et al. 2022; Akhmedyarov et al. 2023) These empirical findings are consistent with theoretical frameworks that propose that organizational environmental performance is improved by GEO SD and CP which in turn promotes sustainable development. Moreover, Green orientations and supply chain learning are greatly improved by improvements in CP such as recycling reusing materials streamlining industrial processes cutting energy use and lowering emissions (Baygabulova et al. 2019). These procedures also lessen the detrimental effects that businesses have on the environment and promote an environmentally conscious image in the community. This study clarifies the role that GEO and CP play in attaining SD via SCL’s mediation. Furthermore, by outlining the connections between the issues under study and their main effects it has significant practical implications for businesses society and regulatory organizations. According to Ahmedyarov et al. (2023) the research findings suggest that the dairy business may effectively traverse the current competitive landscape by incorporating CP and GEO strategies into their operations.

9 Conclusions

Recycling reusing materials optimizing processes minimizing energy consumption and lowering emissions are all examples of CP developments that increase green orientations and supply chain learning. These strategies help to protect the environment while also improving corporate sustainability. This paper focuses on the function of GEO and CP in achieving ED through SCL mediation with practical consequences for enterprises society and regulators. Ahmedyarov et al. (2023) propose that the dairy business can navigate competition by combining CP and GEO techniques. GEO SCL and CP also reduce waste and emissions hence boosting sustainability. Balancing economic environmental and social performance is critical as the dairy industry confronts criticism from a variety of stakeholders. Moreover, companies should implement tougher environmental rules (Aimen et al. 2022; Akhmedyarov et al. 2023) although regulatory pressure is still necessary due to insufficient corporate incentives. The industry can make environmental improvements through voluntary initiatives or regulatory procedures.