Artificial Intelligence-enabled value creation and competitive advantage in supply chain management: A dynamic capabilities perspective

Abstract

This study examines how artificial intelligence (AI) creates strategic value in supply chain management (SCM) by integrating technological capabilities, organizational agility, and human expertise. Using a mixed-methods design, the study combines quantitative survey data from 250 global supply chain executives with three qualitative industry case studies to develop the Artificial Intelligence–Supply Chain Management (AI-SCM) Value Creation Framework, grounded in Dynamic Capabilities Theory. Organizations with higher AI maturity reported 31.5% higher demand-forecast accuracy and 14.5% lower logistics and freight costs. Qualitative evidence indicates that AI-enabled predictive analytics, adaptive decision-making, and operational integration can strengthen supply chain agility and resilience. AI can function as an embedded strategic capability when supported by organizational readiness, reliable data, and human expertise. However, these benefits are not unconditional. Environmental burdens associated with AI infrastructure and algorithmic management risks, including surveillance and reduced worker autonomy, require responsible governance and meaningful human oversight. AI-enabled value creation is therefore contingent on technological capability, organizational conditions, and responsible human-AI integration. Keywords: Artificial Intelligence, Supply Chain Management, Competitive Advantage, Dynamic Capabilities, Value Creation.