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Communications of the Association for Information Systems

Abstract

This research explores the adoption and implications of generative AI (GenAI) for increasing sustainable supply chain performance (SSCP) from an institutional theory perspective. Drawing on an abductive qualitative analysis of 31 semi-structured interviews with supply chain and AI specialists across multiple organizations and employing thematic analysis, the study identifies the principal drivers, implementation processes, and performance outcomes associated with GenAI adoption. Once the themes were established, we analyzed the emerging patterns using Institutional Theory, which elucidates the coercive, mimetic, and normative pressures that influence motivations for GenAI adoption. The results indicate that such pressures have a significant impact on the firm’s path to GenAI technology capability development and upgrade for sustainable development. This technology can contribute to better environmental regulations, less waste, better energy utilization, and ethical sourcing, which enhance the whole SSCP. The research contributes to theory and practice by presenting a model integrating institutional pressures and GenAI capabilities for sustainable objectives and assists firms in capitalizing on emerging technologies in complex regulatory and stakeholder environments. Further research is needed to examine the development of GenAI-enabled SC capabilities under institutional pressures in numerous settings, such as their ethical implications and synergies with other Industry 4.0 technologies for advancing SSCs.

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