Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains

Communications of the Association for Information Systems Volume 57 Paper in press 2025 Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains Adnan Khan Hangzhou City University & University of Waikato Syed Hussain Murtaza Warsaw School of Economics Parisa Maroufkhani Queensland University of Technology Sultan Sikandar Mirza University of Waikato Follow this and additional works at: https://aisel.aisnet.org/cais Recommended Citation Khan, A., Hussain Murtaza, S., Maroufkhani, P., & Sikandar Mirza, S. (In press). Digital Resilience in HighTech SMEs: Exploring the Synergy of AI and IoT in Supply Chains. Communications of the Association for Information Systems, 57, pp-pp. Retrieved from https://aisel.aisnet.org/cais/vol57/iss1/37 This material is brought to you by the AIS Journals at AIS Electronic Library (AISeL). It has been accepted for inclusion in Communications of the Association for Information Systems by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact . C ommunications of the A ssociation for I nformation S ystems Accepted Manuscript Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains Adnan Khan Syed Hussain Murtaza* University of Waikato Hangzhou City University Hangzhou China & Waikato Management School University of Waikato Hamilton, New Zealand. 0000-0002-6064-7215 Warsaw School of Economics Warsaw Poland 0009-0003-5531-8315 Parisa Maroufkhani Sultan Sikandar Mirza Center for Future Enterprise Queensland University of Technology Queensland, Australia Waikato Management School University of Waikato Hamilton, New Zealand 0000-0002-8044-9945 Please cite this article as: Khan, A., Hussain Murtaza, S., Maroufkhani, P., & Sikandar Mirza, S. (in press). Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains. Communications of the Association for Information Systems. This is a PDF file of an unedited manuscript that has been accepted for publication in the Communications of the Association for Information Systems. We are providing this early version of the manuscript to allow for expedited dissemination to interested readers. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered, which could affect the content. All legal disclaimers that apply to the Communications of the Association for Information Systems pertain. For a definitive version of this work, please check for its appearance online at http://aisel.aisnet.org/cais/. Accepted Manuscript C ommunications of the A ssociation for Research Paper I nformation S ystems ISSN: 1529-3181 Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains Adnan Khan Syed Hussain Murtaza* University of Waikato Hangzhou City University Hangzhou China & Waikato Management School University of Waikato Hamilton, New Zealand. 0000-0002-6064-7215 Warsaw School of Economics Warsaw Poland 0009-0003-5531-8315 Parisa Maroufkhani Sultan Sikandar Mirza Center for Future Enterprise Queensland University of Technology Queensland, Australia Waikato Management School University of Waikato Hamilton, New Zealand 0000-0002-8044-9945 Abstract: This study investigates the transformative interaction among digital resilience (DR), internet of things-oriented supply chain practices (IoTP), AI-driven innovative practices (AIDIP), and sustainable supply chain performance (SSCP) in the context of the dynamic capability view (DCV) theory. Using empirical data from 293 high-tech SMEs in China that have adopted IoT and AI practices and analyzing it through partial least squares structural equation modeling (PLSSEM), the results show that DR has a significant effect on IoTP and AIDIP improvement, which in turn positively influences SSCP. Notably, IoTP has a positive impact on operational efficiency and environmental sustainability, whereas AIDIP is also vital to resource optimization and predictive analytics. Moreover, SCD moderates the relationship between DR and IoTP, which amplifies the effectiveness of digital practices in dynamic environments. These findings have major implications for integrating digital technology with adaptive capacities in improving supply chain resilience (SCR), efficiency, and sustainability. However, since the sample is limited to Chinese high-tech SMEs with confirmed adoption of IoT and AI practices, the generalizability of the findings to other firm sizes or geographies should be approached with caution. The current research thus fills the gap between theory and practice and provides managers and policymakers with actionable insights while prescribing a robust framework for navigating the complexities of contemporary supply chain management. Keywords: Digital Resilience, Internet of Things-Oriented Supply Chain Management Practices, AI-Driven Innovative Practices, Supply Chain Dynamism, Sustainable Supply Chain Performance. [Department statements, if appropriate, will be added by the editors. Teaching cases and panel reports will have a statement, which is also added by the editors.] [Note: this page has no footnotes.] This manuscript underwent [editorial/peer] review. It was received xx/xx/20xx and was with the authors for XX months for XX revisions. [firstname lastname] served as Associate Editor.] or The Associate Editor chose to remain anonymous.] Accepted Manuscript Digital Resilience in High-Tech SMEs: Exploring the Synergy of AI and IoT in Supply Chains 1 Introduction In the modern era of fast technological strides and integrated world markets, building resilience and sustainability in supply chain management has been a strategic imperative for organizations to gain an advantage in the competitive market space (Susitha et al., 2024). Ali et al., (2023), emphasized that integration of digital sustainability strategies with supply chain management increasingly gets affected by global uncertainties and disruptive technological changes. So, it is quite understandable that contemporary supply chains are confronted with increased complexity (LeBaron, 2021). These findings increase this complexity, propelled by consumer expectations, decreasing product life span, globalization's vast implications, and the disrupting aspects triggered by global uncertainties. Those disruptions also include public health crises, in other words, outbreaks, geopolitical tensions, and even natural disasters (Lund et al., 2020). Such disruptive impact raises the question of how different entities can build the capabilities to become resilient to major shocks. For instance, the COVID-19 pandemic highlighted significant vulnerabilities such as supply chain disruptions that impacted suppliers (Harland, 2021), cybersecurity breaches targeted businesses (Pranggono (...truncated)