Investigating the impact of benefits and challenges of IOT adoption on supply chain performance and organizational performance: An empirical study in Malaysia

Abstract

In Malaysia, manufacturing industry is a major contributor to the economic advancement. As a result, cutting-edge technology like the internet of things (IoT) is projected to have a significant impact on business operations and supply chain management (SCM). However, research into the influence of IoT deployment on supply chains and organizational performance is relatively sparse. Therefore, this study is to determine the relationship between benefits and challenges of IoT adoption and organizational performance. Furthermore, this study looks into the mediating role of supply chain performance in the relationship between IoT adoption benefits and challenges and organizational performance. The population of this study is comprised of 3019 manufacturing companies in Malaysia, while the minimum sample size needed is 43 manufacturing companies.1160 complete set of survey questionnaire were distributed through email and 63 responses received representing five per cent of response rate. Partial Least Square Structural Equation Modelling (PLS-SEM) is used to assess all of the study's hypotheses. The results of this paper support six out of the seven hypotheses tested. In conclusion, the manufacturing industry in Malaysia needs to be exposed more to the benefits of IoT rather than keep discussing its challenges. This study can be a guideline to the manufacturing companies in decision making for IoT adoption. The limitations and recommendation for future study is highlighted.