ADOPTION OF ARTIFICIAL INTELLIGENCE AND DIGITAL SUPPLY CHAIN FOR ENHANCING SUPPLY CHAIN PERFORMANCE: MEDIATING ROLE OF GREEN SUPPLY CHAIN PROCESS

Abstract

: Research empirically tested the impact of artificial intelligence adoption and digital supply chains on supply chain performance with the mediating effect of green supply chain process of manufacturing companies in Saudi Arabia. For this purpose, cross-sectional data collected from 330 employees working in manufacturing firms’ by using self-administered questionnaires and employing a convenient sampling technique. Partial Least Square (PLS)-Structural Equation Modeling (SEM) technique employed in two measurement and structural models. The results show that AI-based business and marketing, AI-based risk management, AI-based power workforce, and AI-based big data analytics have a positive and significant impact on supply chain performance. Digital supply chain and green supply chain process also positive and significant impact on supply chain performance. Further indirect effect results show that the green supply chain process is also partially mediated among AI-based factors, digital supply chain, and supply chain performance of manufacturing companies in Saudi Arabia. The study with these findings suggested that manufacturing companies in Saudi Arabia should prioritize the integration of AI technologies and digital supply chain processes to enhance supply chain performance. Additionally, focusing on green supply chain practices can further amplify the benefits of AI and digital transformation that could increase the supply chain performance and competitive advantage of the organizations.