The role played by responsible artificial intelligence (RAI) in improving supply chain performance in the MSME sector: an empirical inquiry

Abhishek Behl (), Brinda Sampat (), Vijay Pereira () and Charbel José Chiappetta Jabbour ()
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Abhishek Behl: Management Development Institute
Brinda Sampat: NMIMS University
Vijay Pereira: NEOMA Business School
Charbel José Chiappetta Jabbour: NEOMA Business School

Annals of Operations Research, 2025, vol. 354, issue 1, No 2, 5-34

Abstract: Abstract Artificial Intelligence (AI) systems have transformed business functions and contributed significantly to improving the efficiency of business operations. Unlike other technologies, AI models keep dynamically improving based on past data. Most scholars have considered AI to be a strategic resource or technology in the organizational context. Most research on AI based on empirical evidence has been focussed on either its technological or resource-based aspects. Along with improved work efficiency, a looming sense of uncertainty is causing a dip in trust and transparency in business operations. Responsible Artificial Intelligence (RAI) offers a solution suited to address this concern. RAI is a governance framework that documents how a specific organization addresses the challenges centred on AI from both the ethical and legal points of view. Few studies have attempted to explain how RAI could be used to swiftly improve trust and transparency. We set out to use fit viability theory and a selective organizational information privacy and security violations model (SOIPSVM) to answer two critical research questions. RQ 1: How does RAI help firms help improve supply chain coordination and supply chain performance? RQ 2: How does organizational culture moderate the relationships of RAI with fairness, accountability, sustainability, and transparency? To this end, we tested our hypotheses by means of empirical data collected from the Indian service sector using the Warp PLS 7.0 software. Our results help extend the theoretical base of fit viability theory to the context of RAI in micro, small, and medium enterprises (MSMEs) sector’s supply chain operations. The study also help MSMEs to understand the importance and application of RAI in improving their supply chain processes, which can help them reduce costs and improve efficiency.

Keywords: Responsible Artificial Intelligence (RAI); Supply Chain performance; Supply Chain Coordination; Fit viability theory (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10479-023-05624-8

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