EMPIRICAL ASSESSMENT OF ARTIFICIAL INTELLIGENCE ADOPTION AND SUPPLIER INTEGRATION AS PREDICTORS OF PROCUREMENT EFFICIENCY IN UK OIL AND GAS LOGISTICS: THE MEDIATING ROLE OF DIGITAL COLLABORATION

Abstract

The oil & gas (O&G) logistics industry has been challenged to increase its procurement efficiencies due to the high cost of logistics and the complex nature of logistics, resulting in increased pressure being placed upon it. This study will examine the direct influence of the adoption of artificial intelligence (AI) and the level of supplier integration on overall procurement efficiency, and whether the use of digital collaboration may mediate the effects of both variables on overall procurement efficiency in the UK oil and gas (O&G) logistics sector. A cross-sectional research methodology was used to accomplish the goals of this study; it utilized a quantitative survey to gather data from 180 procurement, supply chain, and logistics personnel working for UK-based oil and gas companies. Data was analyzed using SPSS V28 and the PROCESS Macro (model 4) to test both the direct and mediating hypotheses developed in this study. The results showed that both AI Adoption and Supplier Integration have a positive and statistically significant direct effect on Procurement Efficiency. Furthermore, Digital Collaboration partially mediates the relationship between AI Adoption and Procurement Efficiency, and partially mediates the relationship between Supplier Integration and Procurement Efficiency. However, the mediating effect was more substantial for the relationship between Supplier Integration and Procurement Efficiency. This study offers empirical evidence to assist managers in justifying investment in AI technology and development of relationships with suppliers, and demonstrates how these types of investments can provide synergy to each other. The study indicates that digital collaboration platforms are not simply tools to facilitate collaboration, but are necessary pathways through which the benefits of advanced technologies and integrated partnerships are realized. The study highlights the necessity to develop a comprehensive digital transformation strategy that incorporates technological advancements, relational strategies, and collaborative mechanisms.