The Role of AI in Facilitating Supplier Collaboration and Enhancing Supply Chain Performance

Abstract

Abstract This study examines the role of artificial intelligence ( AI ) in enhancing supply chain performance through improved supplier collaboration in West Africa. Grounded in transaction cost economics ( TCE ), resource-based view ( RBV ), and cybernetic theory, the research explores how AI -driven technologies reduce transaction costs, optimize strategic resources, and enhance adaptability through real-time data sharing. A quantitative research approach was employed, utilizing structural equation modeling ( SEM ) to analyze data from 250 suppliers across multiple industries. The findings establish significant relationships between AI -driven communication tools, automation in collaboration processes, real-time data-sharing capabilities, and supplier network integration, all of which positively impact supply chain performance. Among these factors, supplier network integration exhibited the strongest influence on performance outcomes, highlighting the critical role of AI in fostering interconnected supply chains. The study recommends wider adoption of AI tools, automation, and real-time data-sharing mechanisms to enhance supplier interactions and supply chain agility. These insights provide practical implications for supply chain practitioners, policymakers, and industry leaders seeking to leverage AI for greater efficiency and resilience in supply chain operations.