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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Identifying the Factors Influencing AI Adoption in Supply Chain Management to Resolve Supply Chain Disruptions

Suzari Abdul Rahim, Nor Aida Abdul Rahman, Aidi Ahmi, Muhammad Waheed

http://dx.doi.org/10.6007/IJARBSS/v14-i11/23468

Open access

This research aims to identify the factors influencing AI adoption in supply chain to resolve supply chain disruptions. It is undeniable that the adoption of AI in the supply chain could be essential to resolve supply chain disruptions. Supply chain disruptions could be defined as unexpected events such as earthquakes, the COVID-19 pandemic, and the Suez Canal crisis. To promote the adoption of AI in supply chain management and leverage its benefits, it is important to investigate the factors influencing AI adoption in supply chain to resolve supply chain disruptions. This research explores the multifaceted dynamics of adopting artificial intelligence (AI) in supply chain management through the lens of the Technology-Organization-Environment (TOE) framework. Drawing from a comprehensive review of existing literature, the study identifies critical factors influencing AI adoption across three key contexts: technological, organizational, and environmental. Within the technological context, compatibility and complexity emerge as pivotal factors, facilitating seamless integration of AI with existing systems while addressing implementation challenges through comprehensive training and user-friendly interfaces. Organizational factors, particularly top management support, are found to play a decisive role in driving AI initiatives by ensuring strategic alignment, resource allocation, and fostering an innovation-friendly culture. The study underscores the significance of governmental regulations and support mechanisms in creating an enabling environment for AI adoption, enhancing clarity, reducing compliance risks, and incentivizing investment in AI technologies. Managerial implications highlight the importance of organizational readiness, cultural alignment, and strategic planning in leveraging AI to enhance supply chain resilience and competitive advantage. By strategically navigating these factors, organizations can optimize AI adoption efforts, thereby enhancing operational efficiencies, decision-making capabilities, and overall supply chain performance. In conclusion, this research contributes a nuanced understanding of AI adoption in supply chain management, offering actionable insights for businesses to effectively integrate AI technologies and navigate the complexities of the digital transformation era.