Digital Innovation for Sustainable Supply Chains: An Empirical Study of AI, Cloud, and IoT in Indian Logistics

Abstract

This study investigates the role of digital enablers—Artificial Intelligence (AI), Cloud Computing, and the Internet of Things (IoT)—in driving sustainability outcomes in Indian logistics and supply chains. Guided by the Technology Organization Environment (TOE) framework and Green Supply Chain Management (GSCM) theories, the research adopts a quantitative, cross-sectional, survey-based design involving 250 firms across FMCG, e-commerce, manufacturing, and retail sectors.

Independent variables included AI, Cloud, and IoT adoption, while dependent variables comprised carbon emission reduction, energy efficiency, waste reduction, and cost efficiency, with firm size, sector, location, and digital maturity serving as control variables. Descriptive analysis revealed moderate to high levels of digital adoption among Indian firms. Reliability and factor analysis confirmed robust measurement validity.

Correlation and multiple regression results supported all three hypotheses. AI adoption significantly reduced carbon emissions, Cloud adoption improved energy efficiency, and IoT adoption enhanced waste reduction. Moreover, the joint effect of all three technologies was particularly strong for cost efficiency, highlighting the economic as well as environmental value of digital transformation.

The findings provide theoretical contributions by validating digital enablers within the TOE and GSCM frameworks while offering practical insights for managers and policymakers. For firms, prioritizing digital investments in AI, Cloud, and IoT is essential for meeting sustainability goals and improving operational performance. For policymakers, the study underscores the need to incentivize digital adoption and strengthen digital infrastructure to support sustainable logistics.

Limitations include reliance on self-reported, cross-sectional data. Future research should employ longitudinal designs and explore emerging technologies such as blockchain and 5G. Overall, the study demonstrates that digital adoption is indispensable for advancing Sustainable Logistics 4.0 in India, balancing economic growth with environmental responsibility.