The Impact of 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 between AI-SCI and ES in the RMG sector of Bangladesh. The study uses a quantitative research method and a cross-sectional survey. The sample size was sufficiently large, drawing upon the data of 389 managerial professionals employed in the RMG sector in Bangladesh. The study used PLS-SEM for complex model testing in management studies to ascertain the complex interrelationships among AI-SCI, TR, SCA, and ES. The findings demonstrate that there is 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 much direct but mainly the intermediate role of superior technological capabilities and enhanced agility of supply chain integration. The study provides helpful implications for RMG companies and policy makers. This study adds to the literature by filling a knowledge gap on how AI implementation may galvanize sustainable RMG practices especially in emerging countries