FROM AI-ENABLED ORGANIZATIONAL CAPITAL TO SUPPLY CHAIN PERFORMANCE: THE MEDIATING ROLE OF SUPPLY CHAIN ADAPTABILITY IN EMERGING ECONOMY MANUFACTURING FIRMS

Abstract

The increasing integration of artificial intelligence in supply chain management is reshaping how firms develop organizational capabilities to respond to dynamic and uncertain business environments. Drawing on the Dynamic Capability View, this study examines the effect of AI-enabled organizational capital on supply chain adaptability and supply chain performance, with technology uncertainty considered as a moderating condition. Using survey data collected from manufacturing firms and analyzed through partial least squares structural equation modeling, the findings show that AI-enabled organizational capital has a significant positive effect on supply chain adaptability. Supply chain adaptability also has a strong and significant positive effect on supply chain performance. However, the direct effect of AI-enabled organizational capital on supply chain performance is not significant. These results indicate that AI-enabled organizational capital improves supply chain performance primarily through the development of supply chain adaptability rather than through a direct performance effect. The mediation analysis further confirms that supply chain adaptability significantly mediates the relationship between AI-enabled organizational capital and supply chain performance. In contrast, the moderating effect of technology uncertainty on the relationship between AI-enabled organizational capital and supply chain performance is not significant. Firm size also does not show a significant effect on supply chain performance.This study contributes to the supply chain management literature by demonstrating that AI-enabled organizational capital functions as an important organizational resource for strengthening supply chain adaptability. It also extends the Dynamic Capability View by showing that adaptability is a critical mechanism through which AI-related organizational capabilities are translated into improved supply chain performance. From a managerial perspective, the findings suggest that firms should not expect AI-enabled organizational capital alone to directly enhance performance. Instead, managers should focus on using AI-related resources to build adaptive supply chain processes, flexible decision-making, and responsive operational capabilities.