AIoT quality, supply chain intelligence, and sustainable competitive advantage: A study of Taiwan’s semiconductor industry

Driven by the demands of 5 G and high-performance computing, Taiwan’s semiconductor industry is increasingly adopting Artificial Intelligence of Things (AIoT) to sustain its cluster-based competitive advantage. While research has highlighted the potential benefits of AI, IoT, and big data analytics in supply chain management, the mechanism by which AIoT quality links to sustainable competitive advantage (SCA) through supply chain processes remains underexplored. This study investigates how AIoT quality influences supply chain intelligence (SCI), supply chain quality management practices, and supply chain management performance, thereby driving sustainable competitive advantage. Empirical data were collected through a questionnaire survey of firms in Taiwan’s semiconductor industry and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that AIoT quality significantly enhances supply chain intelligence, which serves as a pivotal mediating mechanism that strengthens quality management practices and operational performance, ultimately fostering sustainable competitive advantage. These findings demonstrate that the value of AIoT extends beyond technology adoption and depends on the quality of AIoT-enabled information and systems and their ability to support supply chain intelligence and management capabilities, thereby advancing the understanding of how AIoT contributes to sustainable competitive advantage. Practically, the findings provide guidance for semiconductor firms to improve AIoT quality and intelligence capabilities to strengthen supply chain coordination and long-term competitiveness.