MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Supply Chain and Logistics Management

Impact of Artificial Intelligence-Based Supply Chain Management on Supply Chain Performance and Organizational Effectiveness: An Empirical Investigation of Oil and Gas Industry in India

  1. Tarun Nanda
  2. Sanjeev Kumar Sharma

Abstract

The present study focuses on the oil and gas (O&G) industry to examine the impact of adopting Artificial Intelligence (AI)-based Supply Chain Management (SCM) on its 'Organizational Effectiveness (OE), while assessing the mediating effect of Supply Chain Performance (SCP). A well-designed questionnaire was sent to target professionals from large public-sector oil and gas firms in India, with a total of 296 purposively sampled completed questionnaires endorsed for this study. The study proceeded with the analysis of the collected data using structural equation modeling with the aid of AMOS. AI-based SCM was found to have a moderate impact on enhancing the organizational effectiveness of oil & gas companies. Additionally, SCP was observed to play a mediating role in the relationship between AI-based SCM and OE, revealing that the true impact is indeed through enhanced supply chain functions. Therefore, this study proposes to increase the exponentially growing literature on digital supply chains by providing empirical support for the application of AI in even the most conventional domains. Most importantly, it provides an empirical basis for O&G companies, especially in developing countries like India, to consider reserving a portion of their yearly IT spend towards the adoption of AI-based SCM with a foresight to improve their supply chain and eventually enhance Organizational Effectiveness.
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