AI-Driven Supply Chain Integration on Environmental Sustainability in the RMG Sector: Exploring the Mediating Roles of Technological Readiness and Supply Chain Agility

Abstract

The study aims to explore the complex relationship among AI-SCI, ES, and the RMG sector in Bangladesh. The study uses quantitative research methods and a cross-sectional survey. The sample size was sufficiently large, comprising 389 managerial professionals employed in the RMG sector in Bangladesh. The study used PLS-SEM to test a complex model in management research and to examine the interrelationships among AI-SCI, TR, SCA, and ES. The findings demonstrate a positive statistical association between AI-SCI and ES (β = 0.229, p < 0.000), indicating the role AI technologies could play in promoting sustainable operations. The results show that technological readiness (β = 0.793, p < 0.000) and supply chain agility (β = 0.813, p < 0.000) are crucial mediators that significantly strengthen the effect of AI-SCI on sustainability performance. These results show that the effect of AI-SCI on promoting environmental sustainability is not direct to policymakers but instead mediated by superior technological capabilities and enhanced supply chain integration agility. The study provides helpful implications for RMG companies and policymakers. This study adds to the literature by addressing a knowledge gap on how AI implementation may galvanize sustainable RMG practices, especially in emerging countries.