How AI Resources Translate into Supply-Chain Efficiency: Parallel Dynamic Capability Mechanisms in Manufacturing SMEs

Authors

  • Yu Zui Kuala Lumpur University of Science and Technology (KLUST), Kuala Lumpur, Malaysia Author
  • Jaspal Singh Kuala Lumpur University of Science and Technology (KLUST), Kuala Lumpur, Malaysia Author

DOI:

https://doi.org/10.70088/dec55b25

Keywords:

artificial intelligence, supply-chain efficiency, AI value realization, dynamic capabilities, parallel mechanisms, manufacturing SMEs, PLS-SEM

Abstract

Artificial intelligence (AI) offers manufacturing small and medium-sized enterprises (SMEs) new opportunities to improve supply-chain operations, but AI resources do not automatically generate operational value. This study examines how three AI resource-capability foundations-AI Infrastructure Flexibility (AIIF), AI Management Capabilities (AIMC), and AI Personnel Expertise Capability (AIPEC)-are translated into Supply-Chain Efficiency (SCE) through three parallel dynamic capability mechanisms: sensing, seizing, and reconfiguring. Survey data from 604 manufacturing SMEs in Zhejiang Province, China, were analyzed using a two-stage partial least squares structural equation modeling (PLS-SEM) approach. All three dynamic capabilities were positively associated with SCE and jointly explained 31.2% of its variance. All nine specific indirect effects were statistically significant, while the total indirect effects for AIIF (.143), AIMC (.145), and AIPEC (.134) were closely grouped. The findings indicate that AI value realization is distributed across multiple complementary capability-conversion channels rather than concentrated in a single dominant pathway. The study contributes by separating upstream AI resource foundations from the organizational mechanisms through which those resources become operationally valuable.

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Published

27 October 2026

Issue

Vol. 3 No. 2 (2026)

Section

Article

License

Copyright (c) 2026 Yu Zui, Jaspal Singh (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Zui, Y. and Singh, J. (2026) “How AI Resources Translate into Supply-Chain Efficiency: Parallel Dynamic Capability Mechanisms in Manufacturing SMEs”, Strategic Management Insights, 3(2), pp. 100–105. doi:10.70088/dec55b25.