Generative AI-enabled supply chain management: The critical role of coordination and dynamism

Generative AI has exerted a transformative impact on various industries. However, the effective integration of generative AI into supply chain management (SCM) remains unclear. To address this, we employ the relational view to examine the relationships among generative AI usage depth, supply chain coordination, and supply chain performance at different levels of supply chain dynamism. We analyze survey data from 236 Chinese firms that have implemented generative AI to varying extents. We identify a positive association between generative AI usage depth and supply chain performance. Two types of supply chain coordination—supplier and buyer—play crucial mediating roles in connecting the aforementioned positive association. Surprisingly, supply chain dynamism amplifies the mediating roles of supplier and buyer coordination. We contribute to the existing AI-enabled SCM research by providing empirical support for the moderated mediation mechanism underlying the generative AI usage depth-supply chain performance link. We also offer practical guidelines for firms aiming to strategically leverage generative AI.