Driving integration to intelligence: Exploring the roles of internal, supplier, and customer coordination with AI adoption in improving supply chain quality

Abstract

Companies continually strive to produce high-quality products by involving all components in the supply chain. Solid internal integration can serve as the foundation for coordinating and collaborating with external partners to consistently deliver quality products throughout the entire supply chain management process. Data collection was conducted at 222 medium and large manufacturing companies that focus on maintaining product quality. Data was analyzed using structural equation modeling, specifically SmartPLS version 4. Results indicate that internal integration has a significant impact on supplier collaboration (0.615), customer coordination (0.484), and artificial intelligence adoption (0.350). Supplier collaboration leads to a substantial increase in the adoption of artificial intelligence (0.393) and supply chain quality (0.302). Customer coordination in manufacturing companies has a significant impact on the adoption of artificial intelligence, but a minor effect on supply chain quality, with a correlation coefficient of 0.194. The results of the study enrich the theory of supply chain quality integration in generating company competitiveness, and contribute practically to managers in companies, enabling them to involve both internal and external partners in the production of high-quality products. Top management needs to establish strong partnerships with external parties to develop effective marketing and purchasing strategies.