Sustainable Adaptive Supply Chains: Artificial Intelligence as a Higher-Order Capability for Systemic Resilience and Environmental Integration

Abstract

In this article, it is suggested that there is a new artificial intelligence leaning supply chain which is known to reduce operational costs, support instantaneous supply chain adaptation and supply chain resilience, and uphold the environment, i.e., the concept of Sustainable Adaptive Supply Chains (SASC). In this sense, we argue that AI constitutes a strategic frontier for realizing supply chain process efficiencies, as it enables much shorter recovery times through excitation factors, adaptive transience, and green recovery. Drawing on the tenets of Dynamic Capabilities Theory and recognizing the importance of AI in enhancing the value of underperforming operations, the paper proposes that AI capabilities are fundamental digital infrastructures that enhance sensing, seizing, and reconfiguring activities. The integrated AI-enabled activities will enhance the “spirit” or lack of it within an organization, centered on the required openness to change, which in turn is the core of bootstrapped change (nurture-as-victim nurture concept). Finally, this part discusses both the application of the SASC approach and its limitations, as well as ways to enhance the ability of organizations and territories to improve sustainability.