Worker Displacement by Artificial Intelligence in Interorganizational Systems: The Impact of BoundarySpanning Employees on Supply Chain Agility

Author(s):

  • Uchenna Ekezie1 (University of North Texas, USA)
  • David Gligor1 (Florida Gulf Coast University, USA)
  • Seock-Jin Hong1 (University of North Texas, USA)
  • Michael Maloni1 (Kennesaw State University, USA)

Abstract:
Organizations are increasingly applying artificial intelligence (AI) in interorganizational systems (IOS) to mitigate demand and supply disruptions. This shift towards AI to enhance supply chain agility capabilities automates some tasks previously undertaken by boundary-spanning employees who serve as critical informational and influential links with supply chain partners. Given limited related research, we investigate the impact of AI not only on the potential displacement of boundary-spanning employee roles but also on subsequent supply chain agility. Leveraging dynamic capabilities and social network theories, we first conducted interviews with supply chain executives to develop a practitioner survey. Following a mixed-methods approach, we next applied structural equation modeling to this survey data and then probed further via follow-up interviews. The results reveal that despite displacing some employees, the use of AI in IOS enhances the remaining operational and strategic roles of the boundary-spanning employees to enrich supply chain agility. The ensuing theoretical and managerial contributions emphasize the essential role of boundary-spanning employees as part of a hybrid human-AI solution, providing insight into the need for an optimal human/AI balance in the supply chain to cope with dynamic marketplaces.

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