AI adoption and green supply chains management: pathways to financial performance from Chinese multinational enterprises

This study examines the impact of Artificial Intelligence Adoption (AIA) on enhancing financial performance (FP) in Chinese manufacturing firms. We aim to clarify the direct influence of AIA on FP, as well as its indirect effects through GSCM and SSCP. The study also checked whether competitive pressure (CP) moderates the relationship between AIA and GSCM. The structural model and hypotheses were tested using CB-SEM (IBM AMOS V23) for hypothesis testing and path coefficient estimation. Non-linear predictive ranking of independent variables was conducted using ANN, while bootstrapping of indirect effects and robustness checks were performed using SmartPLS 4.0. We applied the sequential mediation and moderation analysis technique. This study analyses 340 completed questionnaires from IT, operations, and financial managers of manufacturing MNEs from China. The findings highlight AIA’s direct influence on FP. AIA also affects GSCM practices, and competitive pressures help temper the association. GSCM mediates the relationship between AIA and SSCP but not between AIA and FP. Finally, GSCM and SSCP play sequential roles in mediating AIA’s influence on financial performance. Furthermore, the study shows that when utilizing the ANN technique to analyze nonlinear interactions, SSCP is the most important predictor, followed by AIA and competitive pressures. The findings have significant implications for MNEs operating in emerging contexts, particularly in China. Therefore, MNEs can utilize our suggestions to enhance their long-term performance, ultimately benefiting all stakeholders.