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Artificial intelligence-driven innovation for enhancing supply chain resilience and performance under the effect of supply chain dynamism: an empirical investigation

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Abstract

Supply chain resilience (SCRes) and performance have become increasingly important in the wake of the recent supply chain disruptions caused by subsequent pandemics and crisis. Besides, the context of digitalization, integration, and globalization of the supply chain has raised an increasing awareness of advanced information processing techniques such as Artificial Intelligence (AI) in building SCRes and improving supply chain performance (SCP). The present study investigates the direct and indirect effects of AI, SCRes, and SCP under a context of dynamism and uncertainty of the supply chain. In doing so, we have conceptualized the use of AI in the supply chain on the organizational information processing theory (OIPT). The developed framework was evaluated using a structural equation modeling (SEM) approach. Survey data was collected from 279 firms representing different sizes, operating in various sectors, and countries. Our findings suggest that while AI has a direct impact on SCP in the short-term, it is recommended to exploit its information processing capabilities to build SCRes for long-lasting SCP. This study is among the first to provide empirical evidence on maximizing the benefits of AI capabilities to generate sustained SCP. The study could be further extended using a longitudinal investigation to explore more facets of the phenomenon.

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Appendix: measurement constructs used in the study

Appendix: measurement constructs used in the study

Constructs

Source

Items

Artificial Intelligence (AI)

Dubey et al. (2020)

AI_1. We possess the infrastructure and skilled resources to apply AI information processing system

AI_2. We use AI techniques to forecast and predict environmental behavior

AI_3. We develop statistical, self-learning, and prediction using AI techniques

AI_4. We use AI techniques at all level of the supply chain

AI_5. We use AI outcomes in a shared way to inform supply chain decision-making

Supply Chain Resilience (SCRes)

Yu et al. (2019), Altay et al. (2018 )

SCRes_1. Our firm's supply chain is well prepared to face constraints of supply chain disruptions

SCRes_2.Our firm's supply chain can rapidly plan and execute contingency plans during disruptions

SCRes_3. Our firm's supply chain can adequately respond to unexpected disruptions by quickly restoring its product flow

SCRes_4. Our firm's supply chain can swiftly return to its original state after being disrupted

SCRes_5. Our firm's supply chain can gain a superior state compared to its original state after being disrupted

Supply Chain Performance (SCP)

Srinivasan and Swink (2018)

SCP_1. Order fill rate (% complete, error-free orders shipped on time)

SCP_2. On-time delivery

SCP_3. Order fulfillment lead time (speed)

SCP_4. Product unit cost

Adaptive Capabilities (AC)

Tarafdar and Qrunfleh (2017), Srinivasan and Swink (2018)

AC_1. We can rapidly adjust capacity to accelerate or decelerate production in response to external changes

AC_2. We can meet particular customer specification

AC_3. We can swiftly introduce large numbers of product improvements/variation

Supply Chain Collaboration (SCC)

Dubey et al. (2020), Yu et al. (2019), Srinivasan and Swink (2018)

SCC_1. We continuously share our resources (i.e., data, information, knowledge, and infrastructure) with our suppliers, partners …etc.

SCC_2. We cooperate tightly with our partners to define and implement response strategies

SCC_3. We share our risks and benefits

Supply Chain dynamism (SCD)

Dubey et al. (2020), Yu et al. (2019)

SCD_1. Operating processes become outdated at a high rate

SCD_2. Customers' requirements change at a high rate

SCD_3. Unexpected and disruptive events (i.e. shocks, outbreaks, disruptive technologies) occur at a high rate

SCD_4. Competitors' capabilities change at a high rate

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Belhadi, A., Mani, V., Kamble, S.S. et al. Artificial intelligence-driven innovation for enhancing supply chain resilience and performance under the effect of supply chain dynamism: an empirical investigation. Ann Oper Res 333, 627–652 (2024). https://doi.org/10.1007/s10479-021-03956-x

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