Sustainable Transformation of the Sri Lankan Apparel Sector Through Artificial Intelligence and Diversity, Equity & Inclusion: Evidence from Hirdaramani Garments (Pvt) Ltd

Abstract

The Sri Lankan garments sector is under simultaneous pressure to modernize and enhance social inclusion. There is an emerging interest in AI and DE&I as organizational strategies. However, there is little empirical research on the integrated influence of AI and DE&I on sustainable performance, particularly in South Asian manufacturing. This research study focuses on the impact that the adoption of AI and DE&I have on the sustainable organizational performance of Hirdaramani Garments (Pvt) Ltd which is a BOI-registered mid-tier apparel exporter located in Biyagama, Sri Lanka. The primary data were analyzed on Pearson correlation, multiple regression, mediation analysis (Baron & Kenny,1986), and PROCESS Macro moderation (Hayes,2022) using quantitative and cross-sectional survey design with stratified random sampling (n = 150). The study found that AI adoption and sustainable performance are positively related (r = 0.712, p < 0.01). DE&I practice and workforce engagement also positively related (r = 0.684, p < 0.01). The model explains 63.4% variance in sustainable performance (R² = 0.634). The AI-DE&I impact on performance was observed to be partially mediated by the engagement of the workforce (β=0.541, p < 0.001), while a significant moderation of the AI-performance relationship was noted by the technological readiness (β=0.218, p < 0.05). The paper extends the TAM and Social Exchange Theory to manufacturing HR and offers evidence-based insights for apparel sector leaders and policymakers.