Critical factors affecting Artificial Intelligence in Supply Chain Management (Case study in Danang SMEs)

Abstract

This paper aims to research the elements that affect the decision to implement Artificial Intelligence (AI) in supply chain management at SMEs in Da Nang, Vietnam. The application of new technologies in supply chain management is significant during the development period of industry 4.0. A more in-depth examination of the issues in implementing AI in the supply chain will provide a more objective perspective on the challenges and benefits of adopting AI to supply chain management in SMEs. This paper investigates the effect factors in implementing Artificial Intelligence (AI) technology by constructing a Technology-Organization-Environment (TOE) framework. To achieve the research objectives, this study used two approaches. First, a qualitative approach is used to build a research hypothesis framework. Second, the quantitative approach includes explanatory factor analysis, Pearson Correlation, and regression methods by utilizing survey data on 120 MSMEs in Da Nang. The results indicated that the complexity, compatibility, cost, and external pressure factors are not essential in AI implementation. Referring to those technical factors (relative advantages), organization factors (top management support, organization readiness), and environmental factors (government support) have a positive influence on the technology implementation of AI in supply chain management.