Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities

The significance of big data analytics-powered artificial intelligence has grown in recent years. The literature indicates that big data analytics-powered artificial intelligence has the ability to enhance supply chain performance, but there is limited research concerning the reasons for which firms engaging in manufacturing activities adopt big data analytics-powered artificial intelligence. To address this gap, our study employs institutional theory and resource-based view theory to elucidate the way in which automotive firms configure tangible resources and workforce skills to drive technological enablement and improve sustainable manufacturing practices and furthermore develop circular economy capabilities. We tested the research hypothesis using primary data collected from 219 automotive and allied manufacturing companies operating in South Africa. The contribution of this work lies in the statistical validation of the theoretical framework, which provides insight regarding the role of institutional pressures on resources and their effects on the adoption of big data analytics-powered artificial intelligence, and how this affects sustainable manufacturing and circular economy capabilities under the moderating effects of organizational flexibility and industry dynamism.

Automated summary

The study uses data from automotive and allied manufacturing companies in South Africa to clarify how firms configure resources and workforce skills to drive technological enablement, improve sustainable manufacturing practices, and develop circular economy capabilities, based on institutional theory and resource-based view theory.