| Literature DB >> 33551534 |
Amine Belhadi1, Venkatesh Mani2, Sachin S Kamble3, Syed Abdul Rehman Khan4, Surabhi Verma5.
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.Entities:
Keywords: Artificial intelligence; Digital transformation; Supply chain performance; Supply chain resilience; organizational information processing theory
Year: 2021 PMID: 33551534 PMCID: PMC7856338 DOI: 10.1007/s10479-021-03956-x
Source DB: PubMed Journal: Ann Oper Res ISSN: 0254-5330 Impact factor: 4.854
Literature review of information processing capabilities of Artificial Intelligence for supply chain
| IPC levels | AI-driven IPC for supply chain | AI techniques | References |
|---|---|---|---|
| Level 1: exploiting | Process much more massive amounts of information and knowledge Support supply chain problems detection Overcome cognitive information processing constraints | Machine learning and big data | Priore et al. ( |
| Robust optimization | Baryannis et al. ( | ||
| fuzzy logic and programming | Leung et al. ( | ||
| Stochastic programming | Sabet et al. ( | ||
| Knowledge, representation Reasoning | Baryannis et al. ( | ||
| Level 2: expanding | Generate new ideas within the supply chain innovation process Support supply chain problems analysis Strengthen the interaction between human and machine | Network-based algorithms | Elhoone et al. ( |
| Rough set theory | Mehdizadeh ( | ||
| Tree-based clustering | Zanjani et al. ( | ||
| Level 3: exploring | Explore new ways of identifying problems Explore new innovative solutions Prototype and evaluate the effectiveness of the innovation | Agent-based systems | Muravev et al. ( |
| Model Predictive Control | Belhadi et al. ( | ||
| Robotic Process Automation | Schniederjans et al. ( | ||
| Computer vision | Grover et al. ( |
Fig. 1The research framework
Profiles of the responding firms
| Parameters | Details | Frequency | Percentage (%) |
|---|---|---|---|
|
| |||
| Gender | Male | 171 | 61.29 |
| Female | 108 | 38.71 | |
| Department profile | General manager | 60 | 21.51 |
| Unit head | 54 | 19.35 | |
| Supply chain exuctive/manager | 27 | 9.68 | |
| Operations executive/manager | 58 | 20.79 | |
| Sales executive/ manager | 80 | 28.67 | |
| Managerial experience | Between 3–5 years | 43 | 15.41 |
| 5–10 years | 74 | 26.52 | |
| 10–15 years | 80 | 28.67 | |
| Above 15 years | 82 | 29.39 | |
|
| |||
| Firm size (FS) | Annual turnover < €10 M | 38 | 13.62 |
| Annual turnover between €10 M €100 M | 78 | 27.96 | |
| Annual turnover between €100 M €1 B | 96 | 34.41 | |
| Annual turnover > €1 B | 67 | 24.01 | |
| Business sector (BS) | Fast-moving consumer goods | 61 | 21.86 |
| Chemical products | 57 | 16.85 | |
| Automobile | 53 | 15.41 | |
| Electric/Electronic | 38 | 13.62 | |
| Mining products | 38 | 13.62 | |
| Pharmaceuticals | 33 | 9.68 | |
| Geographic area (GA) | Morocco | 125 | 44.80 |
| France | 79 | 28.32 | |
| India | 75 | 26.88 | |
| Total | 279 | 100 | |
Descriptive analysis of measurement scales
| Items | Mean | SD | Standardized loadings | t-values |
|---|---|---|---|---|
| AI_1 | 3.78 | 1.15 | 0.871 | 14.8 |
| AI_2 | 4.43 | 1.27 | 0.766 | 11.32 |
| AI_3 | 4.46 | 0.59 | 0.887 | 11.15 |
| AI_4 | 4.2 | 1.52 | 0.813 | 11.8 |
| AI_5 | 4.59 | 1.83 | 0.834 | 11.79 |
| AC_1 | 4.06 | 1.8 | 0.719 | 12.97 |
| AC_2 | 4.48 | 2.03 | 0.808 | 13.37 |
| AC_3 | 2.68 | 0.78 | 0.863 | 13.43 |
| SCC_1 | 2.54 | 1.47 | 0.885 | 11.78 |
| SCC_2 | 2.81 | 1.51 | 0.702 | 12.8 |
| SCC_3 | 3.3 | 2.05 | 0.801 | 13.24 |
| SCC_4 | 3.02 | 1.9 | 0.698 | 14.25 |
| SCRes_1 | 3.92 | 2.06 | 0.702 | 13.84 |
| SCRes_2 | 2.53 | 1.26 | 0.709 | 13.45 |
| SCRes_3 | 2.84 | 1.7 | 0.935 | 14.39 |
| SCRes_4 | 2.71 | 0.54 | 0.794 | 13.84 |
| SCRes_5 | 2.57 | 2.08 | 0.931 | 14.52 |
| SCP_1 | 3.54 | 1.78 | 0.751 | 11.26 |
| SCP_2 | 4.23 | 0.61 | 0.907 | 12.6 |
| SCP_3 | 3.67 | 1 | 0.721 | 11.87 |
| SCP_4 | 3.53 | 0.53 | 0.706 | 11.09 |
| SCP_5 | 4.63 | 2.09 | 0.967 | 11.86 |
| SCD_1 | 2.78 | 1.5 | 0.925 | 13.84 |
| SCD_2 | 3.77 | 1 | 0.746 | 13.85 |
| SCD_3 | 4.43 | 1.65 | 0.701 | 13.87 |
| SCD_4 | 3.96 | 1.06 | 0.724 | 11.96 |
AI Artificial Intelligence, AC adaptive capabilities, SCC supply chain coordination, SCRes supply chain resilience, SCP supply chain performance, SCD supply chain dynamism
Construct correlations and discriminant validity results
| α | CR | AVE | AI | AC | SCC | SCRes | SCP | SCD | |
|---|---|---|---|---|---|---|---|---|---|
| AI | 0.882 | 0.968 | 0.683 |
| |||||
| AC | 0.89 | 0.896 | 0.675 | 0.363 |
| ||||
| SCC | 0.851 | 0.839 | 0.806 | 0.377 | 0.33 |
| |||
| SCRes | 0.954 | 0.886 | 0.972 | 0.218 | 0.188 | 0.298 |
| ||
| SCP | 0.897 | 0.795 | 0.707 | 0.498 | 0.69 | 0.074 | 0.234 |
| |
| SCD | 0.935 | 0.873 | 0.883 | 0.202 | 0.76 | 0.301 | 0.315 | 0.283 |
|
AI Artificial Intelligence, AC adaptive capabilities, SCC supply chain coordination, SCRes supply chain resilience, SCP supply chain performance, SCD supply chain dynamism
Bold and between brackets values are square roots of AVE
Fig. 2Final research framework
Summary of structural estimates
| Hypothesis | Model link | Path coefficient | Result | |
|---|---|---|---|---|
| H1 | AI → SCP | 0.49 | < 0.01 | Supported |
| H2 | SCRes → SCP | 0.66 | < 0.01 | Supported |
| H3.a | AI → AC | 0.56 | < 0.01 | Supported |
| H3.b | AC → SCRes | 0.71 | < 0.01 | Supported |
| H4.a | AI → SCC | 0.42 | < 0.01 | Supported |
| H4.b | SCC → SCRes | 0.68 | < 0.01 | Supported |
| H5.a | AI*SCD → SCP | 0.31 | < 0.01 | Supported |
| H5.b | AI*SCD → SCC | 0.44 | < 0.01 | Supported |
| H5.c | AI*SCD → AC | 0.38 | < 0.01 | Supported |
| Effect of control variables | FS → SCRes | -0.03 | > 0.1 | Not supported |
| FS → SCP | -0.31 | > 0.1 | Not supported | |
| BS → SCRes | 0.01 | > 0.1 | Not supported | |
| BS → SCP | 0.08 | > 0.1 | Not supported | |
| GA → SCRes | 0.06 | > 0.1 | Not supported | |
| GA → SCP | 0.01 | > 0.1 | Not supported |
AI Artificial Intelligence, AC adaptive capabilities, SCC supply chain coordination, SCRes supply chain resilience, SCP supply chain performance, SCD supply chain dynamism, FS firm size, BS business sector, GA geographic area
| Constructs | Source | Items |
|---|---|---|
| Artificial Intelligence (AI) | Dubey et al. ( | 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. ( | 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 ( | 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 ( | 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. ( | 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. ( | 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 |