Analysing the Influence of Augmented Reality on Organization Performance via Supply and Logistics Value Chain Functions: A Hybrid ANN-PLS Model Assessment in the Gulf Cooperation Council Region

Abstract

Background: Despite the resurgence of interest in augmented reality (AR) due to Industry 4.0 and its ability to resolve several challenges faced by current business models, comprehensive research examining the capabilities of AR in supply chain management (SCM) and logistics remains limited. This article aims to investigate the potential effects of AR technology on organizational performance through the mediation role of SCM and logistics value chain functions to address the existing knowledge gap. Methods: This research employed a cross-sectional design and an explanatory survey as a deductive approach for hypothesis development. The primary data collection method involved the self-administration of a questionnaire to furniture suppliers located in the Gulf Cooperation Council (GCC), including six countries. Of the 656 questionnaires submitted to suppliers, 483 were considered usable, yielding a response rate of 73.6%. The research utilized partial least squares structural equation modelling (PLS-SEM) and artificial neural network (ANN) techniques to evaluate the gathered data. Results: The current paper’s statistical evidence demonstrates that AR implementation has a positive impact on the supply and logistics value chain activities and organizational performance of furniture suppliers in the GCC region. Moreover, it illustrates that the design and planning variable of supply chain value dominates as the primary predictor of organization performance. The results indicated that the ANN strategy provided a more comprehensive explanation of internally generated constructs compared to the PLS-SEM technique. Conclusions: This study demonstrates its usefulness by advising furniture industry decision-makers on what to avoid and what aspects to consider when creating plans and regulations. The report also suggests operations managers apply machine learning (ANN) for prediction and decision-making in supply and operations value chains. This essay looks at how the AR and resource-based supply value chain view may affect company performance across countries, firm sizes, and ages.