Leveraging artificial intelligence to facilitate green servitization: Resource orchestration and Re-institutionalization perspectives

Research in operations and supply chain management (O&SCM) has highlighted drivers of digital servitization, along with the influence of Industry 4.0 technologies, such as artificial intelligence (AI). Amidst growing environmental concerns, green servitization (GS) has emerged as a strategic alternative to achieve sustainability. However, few studies have examined the interaction between AI capabilities and GS. To address this gap, this study integrates the resource orchestration theory and theory of institutional entrepreneurship for sustainable organizations, to develop a conceptual model examining the relationship between AI-driven decision support systems (ADSS) capabilities, supply-chain alertness (SCA), resource orchestration (REO), re-institutionalization (REI), circular economy practices (CEP), and GS. A survey was conducted with 248 UK supply chain managers and partial least squares-structural equation modelling was used for analysis. The results indicate that ADSS capabilities will significantly enhance SCA (β = 0.597), and the latter will significantly influence REO (β = 0.461), REI (β = 0.495), and CEP (β = 0.160). We also found that the CEP will significantly impact GS (β = 0.781). Both REO (β = 0.169) and REI (β = 0.142) significantly mediates the relationship between SCA and CEP, i.e., REO and REI will facilitate implementing CEP resulting from AI-driven SCA. These findings underscore the key role of ADSS for managers for resource orchestration and implementing new institutional frameworks, which are necessary for adopting GS in supply chain. • AI-based decision support systems provide data-driven insights to enhance supply chain alertness. • AI-driven alertness drives resource orchestration, re-institutionalization and circular practices. • Resource orchestration and re-institutionalization are necessary for adopting circular practices. • Circular economy practices will facilitate green servitization adoption.