Artificial Intelligence-Enabled Supply Chain Management and Competitive Advantage in the Electronics Industry

Amirhossein Bakhshi Farfar

Authors

Amirhossein Bakhshi Farfar Department of Electrical Engineering, K. N. Toosi University of Technology, Tehran, Iran Corresponding author https://orcid.org/0009-0002-9084-8189

Keywords:

Artificial Intelligence; Supply Chain Management; Competitive Advantage; Electronics Industry; Supply Chain Integration; Digital Transformation

Abstract

This study aimed to investigate the effect of artificial intelligence-enabled supply chain management and its dimensions on competitive advantage among electronics-industry firms in Tehran, Iran. This applied, quantitative, cross-sectional, and correlational study was conducted among managers, supervisors, specialists, and professional employees involved in supply chain-related activities in electronics firms in Tehran. A total of 312 valid questionnaires were analyzed. Artificial intelligence-enabled supply chain management was assessed through six dimensions: AI-enabled demand forecasting and planning, intelligent procurement and supplier management, AI-supported inventory management, intelligent production and operations planning, AI-enabled logistics and distribution, and supply chain information integration and decision support. Competitive advantage was measured across cost, quality, delivery and responsiveness, innovation, and flexibility dimensions. Data were analyzed using descriptive statistics and partial least squares structural equation modeling. Reliability and validity were assessed through factor loadings, Cronbach’s alpha, composite reliability, average variance extracted, heterotrait-monotrait ratios, and variance inflation factors. Structural relationships were evaluated using bootstrapping with 5,000 resamples. Artificial intelligence-enabled supply chain management had a significant positive effect on competitive advantage (β = 0.684, t = 16.683, p < 0.001), explaining 46.8% of its variance (R² = 0.468; adjusted R² = 0.466). Predictive relevance was satisfactory (Q² = 0.332), and model fit was acceptable (SRMR = 0.057). Among the dimensions, supply chain information integration and decision support had the strongest effect on competitive advantage (β = 0.224, p < 0.001), followed by AI-supported inventory management (β = 0.181, p = 0.001), AI-enabled demand forecasting and planning (β = 0.157, p = 0.003), AI-enabled logistics and distribution (β = 0.143, p = 0.005), intelligent procurement and supplier management (β = 0.126, p = 0.010), and intelligent production and operations planning (β = 0.119, p = 0.011). The findings indicate that integrated application of artificial intelligence across supply chain functions can substantially strengthen competitive advantage in the electronics industry, particularly through improved information integration, decision support, inventory management, forecasting, and logistics capabilities.

References

[1] K. Tolessa, "Supply Chain Integration as a Driver of Sustainable Competitive Advantage: Evidence From Ethiopian Manufacturing Industry," 2026, doi: 10.21203/rs.3.rs-10435605/v1.

[2] X. Zhang, X. He, X. Du, A. Zhang, and Y. Dong, "Supply Chain Practices, Dynamic Capabilities, and Performance," Journal of Organizational and End User Computing, vol. 35, no. 3, pp. 1-26, 2023, doi: 10.4018/joeuc.325214.

[3] H. Tan, "A Comprehensive Analysis of Supply Chain Collaboration, Technological Upgrading, and Market Demand as a Framework for Increasing Competitiveness," International Journal of Global Economics and Management, vol. 3, no. 3, pp. 343-362, 2024, doi: 10.62051/ijgem.v3n3.40.

[4] H. Liu, L. Lin, C. Yang, and J. Ren, "Competitive Advantage, Relationship, and Benefit: Primary and Secondary Influencing Factors of Supply Chain Collaboration in China’s Advanced Manufacturing Industry," Plos One, vol. 18, no. 6, p. e0285247, 2023, doi: 10.1371/journal.pone.0285247.

[5] A. Kelly, "Impact of Artificial Intelligence on Supply Chain Optimization," Journal of Technology and Systems, vol. 6, no. 6, pp. 15-27, 2024, doi: 10.47941/jts.2153.

[6] A. O. Abhulimen and O. G. Ejike, "Solving Supply Chain Management Issues With AI and Big Data Analytics for Future Operational Efficiency," Computer Science & It Research Journal, vol. 5, no. 8, pp. 1780-1805, 2024, doi: 10.51594/csitrj.v5i8.1396.

[7] A. O. Adewusi, A. M. Komolafe, E. Ejairu, I. A. Aderotoye, O. O. Abiona, and O. C. Oyeniran, "The Role of Predictive Analytics in Optimizing Supply Chain Resilience: A Review of Techniques and Case Studies," International Journal of Management & Entrepreneurship Research, vol. 6, no. 3, pp. 815-837, 2024, doi: 10.51594/ijmer.v6i3.938.

[8] N. Lima, "Optimizing Supply Chain Processes Through Deep Learning Algorithms: A Managerial Approach," 2024, doi: 10.52783/jier.v4i1.567.

[9] R. Rajaguru, M. J. Matanda, and W. Zhang, "Supply Chain Finance in Enhancing Supply-Oriented and Demand-Oriented Performance Capabilities – Moderating Role of Perceived Partner Opportunism," Journal of Business and Industrial Marketing, vol. 37, no. 11, pp. 2396-2413, 2022, doi: 10.1108/jbim-11-2020-0487.

[10] A. G. Henryanto, "Driving Supply Chain Finance Adoption: Exploring the Interplay of Innovation Capabilities and Market Response," Jmbi Unsrat (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi), vol. 10, no. 2, pp. 1424-1435, 2023, doi: 10.35794/jmbi.v10i2.50152.

[11] B. M. Kimwaki, "Supply Chain Performance in the Manufacturing Sector: The Role of Lead-Time Management Strategies," Journal Integration of Social Studies and Business Development, vol. 2, no. 1, pp. 1-12, 2024, doi: 10.58229/jissbd.v2i1.142.

[12] S. W. Kazmi and W. Ahmed, "Understanding Dynamic Distribution Capabilities to Enhance Supply Chain Performance: A Dynamic Capability View," Benchmarking an International Journal, vol. 29, no. 9, pp. 2822-2841, 2021, doi: 10.1108/bij-03-2021-0135.

[13] H. Fatorachian, "The Significance of Industry 5.0 in the Globalization of Supply Chain Management," European Economic Letters (Eel), vol. 13, no. 5, pp. 872-885, 2023, doi: 10.52783/eel.v13i5.843.

[14] K. A. Nawaiseh, A. Y. A. Khatib, A. a. A. Jaradat, M. Maraqa, and S. Fayiz Emad Addin Al, "Talent Management in Supply Chain Optimization: A Bibliometric Study and Content Analysis," Human Systems Management, vol. 44, no. 4, pp. 579-597, 2025, doi: 10.1177/01672533251317074.

[15] H. Liu, "Sticky Creativity: Using Digital Sticky Notes in Teaching Supply Chain in a Synchronous Class," Decision Sciences Journal of Innovative Education, vol. 23, no. 4, 2025, doi: 10.1111/dsji.70010.

[16] R. M. Mashat, S. H. Abourokbah, and M. A. Salam, "Impact of Internet of Things Adoption on Organizational Performance: A Mediating Analysis of Supply Chain Integration, Performance, and Competitive Advantage," Sustainability, vol. 16, no. 6, p. 2250, 2024, doi: 10.3390/su16062250.

[17] C. Chepkemoi, P. Keitany, and Z. Shitote, "The Moderating Influence of Enterprise Resource Planning on the Relationship Between Electronic Order Processing Systems and Supply Chain Performance of Manufacturing Firms in Uasin Gishu County, Kenya," Asian Journal of Economics Business and Accounting, vol. 24, no. 11, pp. 258-270, 2024, doi: 10.9734/ajeba/2024/v24i111554.

[18] Y. Jing and X. Zeng, "C2B Coordination and Optimization Strategy of Enterprise Supply Chain for Internet of Things E-Commerce Management," International Journal of Intelligent Information Technologies, vol. 21, no. 1, pp. 1-26, 2025, doi: 10.4018/ijiit.373203.

[19] B. J. Soledispa-Cañarte et al., "The Role of Logistics 4.0 in Agribusiness Sustainability and Competitiveness, a Bibliometric and Systematic Literature Review," Operations and Supply Chain Management an International Journal, pp. 109-120, 2023, doi: 10.31387/oscm0520376.

[20] M. M. H. Shahadat, A. H. M. Y. Chowdhury, R. J. Nathan, and M. Fekete‐Farkas, "Digital Technologies for Firms’ Competitive Advantage and Improved Supply Chain Performance," Journal of Risk and Financial Management, vol. 16, no. 2, p. 94, 2023, doi: 10.3390/jrfm16020094.

[21] Z. Zainurrafiqi and G. Gazali, "Supply Chain Digitalization, Green Supply Chain, Supply Chain Resilience Toward Competitiveness and Msmes Performance," Jurnal Aplikasi Manajemen, vol. 22, no. 1, 2024, doi: 10.21776/ub.jam.2024.022.01.14.

[22] H. Hwihanus, O. Y. A. Wijaya, and D. R. Nartasari, "The Role of Supply Chain Management on Indonesian Small and Medium Enterprise Competitiveness and Performance," Uncertain Supply Chain Management, vol. 10, no. 1, pp. 109-116, 2022, doi: 10.5267/j.uscm.2021.10.005.

[23] D. Saputra, S. Lukman, and V. Pujani, "Investigation of the Connections Between Supply Chain Management Practices and Supply Chain Responsiveness From Competitive Advantage in the Palm Oil Industry," Ranah Research Journal of Multidisciplinary Research and Development, vol. 6, no. 5, pp. 2182-2192, 2024, doi: 10.38035/rrj.v6i5.1105.

[24] R. T. Aldhaheri and S. Z. Ahmad, "Factors Affecting Organisations' Supply Chain Agility and Competitive Capability," Business Process Management Journal, vol. 29, no. 2, pp. 505-527, 2023, doi: 10.1108/bpmj-11-2022-0579.

[25] M. I. Muchiri, P. Kiriri, and V. Kaluyu, "Influence of Outbound Logistics Strategies on the Competitive Advantage of Automotive Companies in Kenya," The University Journal, pp. 117-130, 2023, doi: 10.59952/tuj.v5i3.261.

[26] Y. Ma, "The Impact of Sustainable Supply Chain Management Practices on Business Performance: A Case Study of Huawei," SHS Web of Conferences, vol. 181, p. 03015, 2024, doi: 10.1051/shsconf/202418103015.

[27] B. A. Kurdi, M. T. Alshurideh, and I. Akour, "The Impact of Green Supply Chain Practices and E Supply Chain in Achieving Competitive Advantage," International Journal of Business Analytics and Security (Ijbas), vol. 1, no. 1, pp. 18-38, 2022, doi: 10.54489/ijbas.v1i1.133.

[28] K. H. Nguyen and T. V. Vo, "Assessing the Impacts of Green Logistics on Sustainable Business Performance: An Application of a Hybrid SEM-GM(1,1) Approach," Logistics, vol. 10, no. 3, p. 52, 2026, doi: 10.3390/logistics10030052.

[29] O. Y. A. Wijaya and H. Said, "The Mediating Role of Sustainable Supply Chain Management on Entrepreneurship Strategy, Social Capital and SMEs’ Financial and Non-Financial Performance," Uncertain Supply Chain Management, vol. 12, no. 1, pp. 557-566, 2024, doi: 10.5267/j.uscm.2023.8.016.

[30] H. Abbas and T. Shu, "Green Supply Chain Management Practices of Firms With Competitive Strategic Alliances—A Study of the Automobile Industry," Sustainability, vol. 15, no. 3, p. 2156, 2023, doi: 10.3390/su15032156.

[31] M. A. Ardakani and M. K. Naeini, "An Integrated Dynamic Model to Locate a Competitive Closed-Loop Supply Chain Facility Under Conditions of Uncertainty: A Case Study of the Auto Parts Industry," Rairo - Operations Research, vol. 56, no. 5, pp. 3581-3609, 2022, doi: 10.1051/ro/2022091.

[32] T. L. T. Diem, F. Chromjaková, and L. Homolka, "Strategic Logistics Outsourcing Effectiveness Through the Implementation of 4PL – An Analysis of Selected Industrial Applications," Europub Journal of Social Sciences Research, vol. 3, no. 1, pp. 59-79, 2022, doi: 10.54746/ejssrv3n1-005.

[33] S. Alayed and S. Alateeg, "The Role of Artificial Intelligence in Logistics Firm Performance With Supply Chain Consistency and Logistics Capabilities in Saudi Arabia," Logistics, vol. 10, no. 5, p. 104, 2026, doi: 10.3390/logistics10050104.

[34] Q. Chen, P. Long, R. Dong, and C. Li, "The Impact of Artificial Intelligence on Sustainable Development Performance of Public Healthcare Supply Chain-an Empirical Study Based on Listed Chinese Pharmaceutical Companies," Frontiers in Public Health, vol. 13, 2025, doi: 10.3389/fpubh.2025.1549283.

[35] F. A. Barata, G. N. Febrianto, and M. Yasin, "Supply Chain Management Strategy in Building a Competitive Advantage Through the Implementation of Logistic 4.0," pp. 369-377, 2022, doi: 10.2991/978-94-6463-008-4_47.