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Integrating artificial intelligence into supply chain management: promise, challenges, and guidelines

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Abstract

This paper argues that AI can improve supply chain efficiency, and transform supply chain management by providing tools for managing the functions across all the stages of a supply chain. Despite the promise, organisational and managerial challenges may limit AI and SCM integration. We explore the challenges of AI use in SCM and offer some guidelines for its successful integration. We propose that organisations need to make an economic case for AI adoption, develop a plan for AI implementation, including developing core capabilities and system trust for coordinating behaviour across the stages of the supply chain. As well, organisations need to manage the nexus of people and technology to reduce human-machine conflict, as the goal is for AI to augment human capabilities, not to replace them. We provide the implications of the paper for theory and practice. Keywords: artificial intelligence; supply chain management; stages of supply chains; emerging technology; promise; framing; challenges; guidelines.

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Purpose This paper aims to conceptualize two dimensions of active innovation resistance (AIR): cognitive active resistance and emotional active resistance. A scale to measure this construct is proposed and tested. Design/methodology/approach Three studies were conducted, with sample sizes of 195, 190 and 186, to test the discriminant, convergent, nomological and criterion validity of the proposed AIRc+e scale and to analyze its explanatory and predictive power. Data were gathered using the online platform of a US-based research company. Findings The authors provide evidence that AIR is a two-dimension construct comprising a cognitive and an emotional dimension. AIR was modeled as a third-order construct, comprising two second-order constructs, cognitive active resistance and emotional active resistance. The impact of adding an emotion dimension to active resistance was therefore assessed, and the results indicated that the explanatory and predictive power of the AIR measure improved as expected. Practical implications Consumers are most likely to resist innovations launched onto the marketplace, either prior to or after evaluating them. A better understanding of the reasons behind their resistance to innovation, as well as of its mechanisms, is of great importance in decreasing an innovation’s chances of failure. Originality/value This study proposes that incorporating emotion into the assessment of AIR will result in a deeper understanding of adoption and rejection behavior, expanding the current knowledge of consumer behavior in innovation-related, new product adoption and decisions.
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Purpose This paper aims to identify and appropriately respond to any socio-technical gaps within organisational information and cybersecurity practices. This culminates in the equal emphasis of both the social, technical and environmental factors affecting security practices. Design/methodology/approach The socio-technical systems theory was used to develop a conceptual process model for analysing organisational practices in terms of their social, technical and environmental influence. The conceptual process model was then applied to specifically analyse some selected information and cybersecurity frameworks. The outcome of this exercise culminated in the design of a socio-technical systems cybersecurity framework that can be applied to any new or existing information and cybersecurity solutions in the organisation. A framework parameter to help continuously monitor the mutual alignment of the social, technical and environmental dimensions of the socio-technical systems cybersecurity framework was also introduced. Findings The results indicate a positive application of the socio-technical systems theory to the information and cybersecurity domain. In particular, the application of the conceptual process model is able to successfully categorise the selected information and cybersecurity practices into either social, technical or environmental practices. However, the validation of the socio-technical systems cybersecurity framework requires time and continuous monitoring in a real-life environment. Practical implications This research is beneficial to chief security officers, risk managers, information technology managers, security professionals and academics. They will gain more knowledge and understanding about the need to highlight the equal importance of both the social, technical and environmental dimensions of information and cybersecurity. Further, the less emphasised dimension is posited to open an equal but mutual security vulnerability gap as the more emphasised dimension. Both dimensions must, therefore, equally and jointly be emphasised for optimal security performance in the organisation. Originality/value The application of socio-technical systems theory to the information and cybersecurity domain has not received much attention. In this regard, the research adds value to the information and cybersecurity studies where too much emphasis is placed on security software and hardware capabilities.
Article
Purpose The purpose of this paper is to propose a forecasting model to predict the demand under uncertain environment to control the bullwhip effect (BWE) considering review-period order-up-to level ((R, S)) inventory control policy and its different variants such as (R, βS) (R, γO) and (R, γO, βS) proposed by Jakšič and Rusjan, (2008) and Bandyopadhyay and Bhattacharya (2013). Design/methodology/approach A hybrid forecasting model has been developed by combining the feature of discrete wavelet transformation (DWT) and an intelligence technique, multi-gene genetic programming (MGGP), denoted as DWT-MGGP. Performance of DWT-MGGP model has been verified under (R, S) inventory control policy considering demand from three different manufacturing companies. Findings A comparison between DWT-MGGP model and autoregressive integrated moving average forecasting model has been done by estimating forecast error and BWE. Further, this study has been extended with analysing the behaviour of BWE considering different variants of (R, S) policy such as (R,βS) (R, γO) and (R,γO,βS) and found that BWE can be moderated by controlling the inventory smoothing (β) and order smoothing parameters (γ). Research limitations/implications This study is limited to different variants of (R, S) inventory control policy. However, this study can be further extended to continuous review policy. Practical implications The proposed DWT-MGGP model can be used as a suitable demand forecasting model to control the BWE when (R, S), (R,βS) (R,γO) and (R,γO,βS)inventory control policies are followed for replenishment. Originality/value This study analyses the behavior of BWE through controlling the inventory smoothing (β) and order smoothing parameters (γ) when demand is predicted using DWT-MGGP forecasting model and order is estimated using (R, S), (R,βS) (R,γO) and (R,γO,βS) inventory control policies.
Article
Purpose An emerging theme in the practitioner literature suggests that the supply chain of the future – enabled especially by developments in ICT – will be autonomous and have predictive capabilities, bringing significant efficiency gains in an increasingly complex and uncertain environment. This paper aims to both bridge the gap between the practitioner and academic literature on these topics and contribute to both practice and theory by seeking to understand how such developments will help to address key supply chain challenges and opportunities. Design/methodology/approach A multi-disciplinary, systematic literature review was conducted on relevant concepts and capabilities. A total of 126 articles were reviewed covering the time period 1950-2018. Findings The results show that both IoT and AI are the technologies most frequently associated with the anticipated autonomous and predictive capabilities of future supply chains. In addition, the review highlights a lacuna in how such technologies and capabilities help address key supply chain challenges and opportunities. A new supply chain model is, thus, proposed, one with autonomous and predictive capabilities: the self-thinking supply chain. Originality/value It is our hope that this novel concept, presented here for the first time in the academic literature, will help both practitioners to craft appropriate future-proofed supply chain strategies and provide the research community with a model (built upon multidisciplinary insights) for elucidating the application of new digital technologies in the supply chain of the future. The self-thinking supply chain has the potential in particular to help address some of today’s key supply chain challenges and opportunities.
Article
Purpose The purpose of this paper is to create an instrument for conducting future supply chain transparency research by developing and validating a measure of supplier transparency. Specifically, the research develops a two-dimensional measure of supplier transparency that builds on previous studies that independently examine visibility and traceability in supply chain management (SCM)/logistics. Design/methodology/approach The scale development process is carried out over three stages (item generation, scale purification, scale validation). Survey methods are used with two separate data collection phases involving a total of 358 managers from multiple and diverse industries. Findings The new supplier transparency measure is a concise, two-dimensional scale that has the potential for significant usage in the development and testing of SCM theory. Research limitations/implications This study implemented a purposefully general sampling procedure. However, different industries may have additional, specific constraints regarding what it means to be a transparent supplier. Additional opportunities for future research include applying the new supplier transparency measure to examine supply chain frameworks, regulatory compliance, supply chain relationships and the implementation of information technology. Practical implications Firms are under increasing pressure to be transparent about partner sourcing, resource utilization and other transactional issues related to the products and processes in their supply chains. The new measure may be utilized to address these issues as well as the interaction between supply chain operations and stakeholders by facilitating a quantitative assessment of supplier transparency. Originality/value Drawing on the established constructs of supply chain visibility and traceability, a measure of supplier transparency is developed, supported by a review of the literature, input from subject matter experts and interviews with supply chain managers. Suggestions are made for future validation of supplier transparency within established supply chain frameworks.
Article
Changing organizations is difficult. In this paper, we analyze how sensemaking that follows the initiation of change initiatives relies on the interplay of prospective and retrospective aspects and we elucidate how organization members’ frames develop over time based on this interplay. Our data, 38 in-depth interviews with nursing and medical staff held at four different points in time, reveal how expectations impact the dynamics of meaning construction in change processes. Our findings demonstrate that the frames through which actors make sense of change initiatives continuously develop although the expectations embedded in them are sticky to some extent. The degree of stickiness depends on expectations that are formed through initial prospective sensemaking, as these expectations influence actors’ tolerance regarding dissonant cues. Change initiatives fail when this tolerance becomes exhausted. Our study contributes to theory on sensemaking and change by elaborating on the undertheorized role of prospective sensemaking during change processes.
Article
Purpose Organizations are social entities comprising multiple people that are goal-directed and have coordinated activities that are also linked to the external environment. As information technology improves, the organizational performance is also improved and it results in positive changes and development in the organizations. Near field communication (NFC) is one of such technologies that can be implemented and utilized in an organization. The purpose of this paper is to investigate the important variables impacting the adoption of NFC in organizations and propose an applicable model for it. Design/methodology/approach In this paper, to have a successful NFC implementation in organizations and analyze main factors impacting the NFC technology adoption in organizations, a technology acceptance model-based approach is used. Findings The findings show that the main variables impacting NFC adoption are ease of use, potential risk, usefulness and cost. The obtained results indicate that the model has adequate and sufficient reliability, convergent validity and discriminant validity. Originality/value In this paper, the factors impacting the NFC adoption in organizations are pointed out, and the proposed model is tested on samples gathered from Azerbaijan railway employees and for statistical analysis of questionnaires, the SMART-PLS 2.0 software package is used.
Conference Paper
Landslides and large floods are serious natural disasters that every year cause multiple deaths and loss in property around the world. When these events occur in areas like the “favelas” or mountain regions in coastal cities like Rio de Janeiro, the situation becomes critical as buildings and infrastructures are not prepared to withstand them. Search and rescue teams in such disaster areas need to rely on real-time communication, which often cannot be adequately provided by cell or radio networks. In this paper, we argue that flying ad-hoc networks can provide the support needed in these scenarios and propose a new solution towards that goal, termed Flying Witness Units. We make our case by presenting real-time schedulability analysis of message delivery for a disaster scenario.
Article
Partner selection is critical to developing successful collaboration for gaining competitive advantage in the logistics industry. In this paper, we present a hybrid approach based on BOCR and MULTIMOORA for the logistics service provider selection. The proposed approach comprises three steps. In the first step, we identify the partner selection criteria using four categories namely benefits, costs, opportunities and risks (BOCR). The second step involves generating linguistic ratings for potential partners on the identified criteria by a committee of decision-making experts. In the third and the last step, final partner selection is done using fuzzy MULTIMOORA. Linguistic information (fuzzy numbers) is used to address the lack of quantitative data. A numerical application is provided. Monte Carlo simulationbased sensitivity analysis is conducted to determine the robustness of MULTIMOORA to variation in criterion and decision maker weights. The strength of our work is the ability to perform logistics partner selection under limited or lack of quantitative data. Besides, BOCR technique allows evaluation of logistics partners from multiple perspectives namely benefits, costs, opportunities and risks. The use of MULTIMOORA technique permits the generation of robust alternative rankings due to incorporation of three inbuilt evaluation functions.
Article
The impact of the industrial and digital (information) revolutions has, undoubtedly, been substantial on practically all aspects of our society, life, firms and employment. Will the forthcoming AI revolution produce similar, far-reaching effects? By examining analogous inventions of the industrial, digital and AI revolutions, this article claims that the latter is on target and that it would bring extensive changes that will also affect all aspects of our society and life. In addition, its impact on firms and employment will be considerable, resulting in richly interconnected organizations with decision making based on the analysis and exploitation of “big” data and intensified, global competition among firms. People will be capable of buying goods and obtaining services from anywhere in the world using the Internet, and exploiting the unlimited, additional benefits that will open through the widespread usage of AI inventions. The paper concludes that significant competitive advantages will continue to accrue to those utilizing the Internet widely and willing to take entrepreneurial risks in order to turn innovative products/services into worldwide commercial success stories. The greatest challenge facing societies and firms would be utilising the benefits of availing AI technologies, providing vast opportunities for both new products/services and immense productivity improvements while avoiding the dangers and disadvantages in terms of increased unemployment and greater wealth inequalities.
Article
Given the complexity of green public procurement, decisions are likely to be driven by bounded rationality. However, we know little about what determines supplier selection criteria in any given situation. This study explores buyer behavior when considering environmental criteria. We first conducted interviews and identified 12 operational procedures used by buyers. We then developed a survey to explore the use of these procedures. Our quantitative analysis suggests that public buyers are motivated by their belief that they can make a difference. This is independent of buyers’ experience or gender. However, their occupational position and the nature of a procurement seem to influence how buyers seek information about environmental criteria and which information source(s) they use. The data suggest that four specific decision-making heuristics are associated with the selected operational procedures.
Article
In Brazil, a developing country, companies must continuously improve and specialise. Thus, in order to mitigate threats from competitors, logistics warehouse management has become a contributing factor for organisation success and part of strategy. In this sense, the more space and optimising inventory operation, the better material flow from production line up to service level, deploying profitable and productive results. Therefore, technical improvements in internal operations are critical for the studied organisation survival. In this study, we intend to demonstrate how best practices and tools based on lean manufacturing methodology are able to increase efficiency by reducing costs and waste in a company of oil and gas industry. This qualitative research integrated in a field research comprises company's warehouses visitation, non-invasion observation and employees' interviews. The result of this paper proposes solutions with low costs, mitigating waste performance to outline a production enhancement.
Article
Numerous researchers have proposed that trust is essential for understanding interpersonal and group behavior, managerial effectiveness, economic exchange and social or political stability, yet according to a majority of these scholars, this concept has never been precisely defined. This article reviews definitions from various approaches within organizational theory, examines the consistencies and differences, and proposes that trust is based upon an underlying assumption of an implicit moral duty. This moral duty—an anomaly in much of organizational theory—has made a precise definition problematic. Trust also is examined from philosophical ethics, and a synthesis of the organizational and philosophical definitions that emphasizes an explicit sense of moral duty and is based upon accepted ethical principles of analysis is proposed. This new definition has the potential to combine research from the two fields of study in important areas of inquiry.
Article
Big data and predictive analytics (BDPA) has been at the forefront of interest for both academics and practitioners. Scholars have acknowledged the importance of BDPA in achieving business value and firm performance. However, the role of BDPA assimilation on supply chain and organizational performance has not been thoroughly investigated. To address this gap, this paper follows a resource-based view perspective to: (i) conceptualise assimilation as a three stage process that is, acceptance, routinization, and assimilation; (ii) identify the influence of resources such as big data connectivity and information sharing under the mediation effect of top management commitment on big data assimilation (capability building), and (iii) the impact of big data assimilation on supply chain performance and organizational performance. Based on our findings, we argue that big data connectivity and IS under the mediation effect of top management commitment is positively related to BDPA acceptance, which is positively related to BDPA assimilation under the mediation effect of BDPA routinization, and positively related to SCP and OP. Finally, we provide the managerial implications of our findings, the limitations of our study and future research directions.
Article
Automation with inherent artificial intelligence (AI) is increasingly emerging in diverse applications, for instance, autonomous vehicles and medical assistance devices. However, despite their growing use, there is still noticeable skepticism in society regarding these applications. Drawing an analogy from human social interaction, the concept of trust provides a valid foundation for describing the relationship between humans and automation. Accordingly, this paper explores how firms systematically foster trust regarding applied AI. Based on empirical analysis using nine case studies in the transportation and medical technology industries, our study illustrates the dichotomous constitution of trust in applied AI. Concretely, we emphasize the symbiosis of trust in the technology as well as in the innovating firm and its communication about the technology. In doing so, we provide tangible approaches to increase trust in the technology and illustrate the necessity of a democratic development process for applied AI.