Enhancing Supply Chain: Exploring and Exploiting AI Capabilities

Abstract

Drawing upon the Organizational Information Processing theory principles, this study delves into the impact of explorative and exploitative artificial intelligence (AI) capabilities on supply chain (SC) performance, specifically regarding efficiency and resilience. A cross-sectional descriptive study through survey leverages structural equation modeling and data gathered from 267 distributor firms to test the proposed model. Results indicate that Explorative AI capabilities have a positive impact on SC resilience, but they do not significantly impact SC efficiency. Conversely, exploitative AI capabilities have a positive influence on SC efficiency and a negative influence on SC resilience. Furthermore, the importance of the digital divide among supply-chain partners is established, which affects SC outcomes. The study took a broad view of AI capabilities as explorative and exploitative AI capabilities which have different impacts on SC outcomes. Another novelty is that it considers “digital divide” among partner firms presenting the views of an emerging economy.