An exploratory study of Internet of Things (IoT) adoption intention in logistics and supply chain management

Abstract

Purpose The Internet of Things (IoT) envisions a global infrastructure of networked physical objects that render radical transparency to supply chain management. Despite the perceived advantages of IoT, industry has still not widely adopted IoT-enabled logistics and supply chain management. The purpose of this paper is to understand the incentives and concerns behind firms’ decisions to adopt IoT, explore the determinant factors affecting IoT adoption in logistics and supply chain management. Design/methodology/approach This study uses mixed methods research to explore the determinants of IoT adoption intention in logistics and supply chain management. Qualitative analysis using the Grounded Theory methodology reveals the underlying perceptions regarding logistic innovation with IoT. Quantitative hypotheses are then developed based on qualitative investigation and adoption literature. Survey data were collected from the managerial staff of Taiwanese firms across various industries. Structural equation modeling with partial least square is used for data analysis. Findings The results of the qualitative study identify uncertainties and issues regarding firms’ intention to accept or reject IoT technology in logistics and supply chain management, including the benefit and cost aspects of adopting IoT, uncertainties about the trustworthiness of IoT technology, and the external motivating force to embrace IoT. The resulting quantitative model shows that perceived benefits, perceived costs, and external pressure are significant determinants of IoT adoption intention, while technology trust is not. However, technology trust does indirectly influence IoT adoption intention through perceived benefits. Practical implications The empirical findings of this study provide some guidelines for logistics and supply chain managers to evaluate IoT adoption in their firms. Likewise, IoT solution providers can also benefit from this study by improving their solutions to mitigate the IoT adoption concerns addressed herein. Originality/value This paper is among the first known to examine IoT adoption intention in logistics and supply chain management using mixed methods research. The mixed methods approach offers a better insight in understanding incentives behind firms’ decisions to adopt IoT vs the use of either a qualitative or quantitative method alone.