Examining the effect of AI-BDA on manufacturing firm performance: An Indian approach

Abstract

Manufacturing firms face an uncertain and continuosly changing environment because of innovations, technological changes, and globalization. To cope with this quick and uncertain environment, firms need to be flexible. Artificial Intelligence (AI) and Big Data Analytics (BDA) are must for manufacturing firms to achieve the flexibility in procurement to manufacturing to marketing. This study explores role of AI-BDA played between Supply Chain Flexibility (SCF) and Supply chain firms performance(SCFP) through six hypothesis. A sample data of 297 responses from forty Indian manufacturing firms were collected. Exploratory and confirmatory factorial analysis were used to analyse the collected data. Out of six hypothesis, four hypothesis are supported. The results show positive impact of AI, BDA and SCF on supply chain firm performance. Also AI positively impacts on BDA. However two hypothesis not supported are positive effect of AI and BDA on SCF needs further investigated. The study can guide decision makers to understand role of AI and BDA to improve supply chain performance.