Innovative developments in the Internet of Things (IoT) have invoked tremendous attention from both academics and industries. Studies suggest that IoT not only serves as an innovative tool for enterprise operations but also triggers impacts on business performance. As researchers increasingly raise issues about the business value of IoT, this study examines its direct and indirect managerial effects by investigating the link between IoT and business strategy. From the organizational capability perspective, this study constructed a research framework in which marketing intelligence capability mediates the effect of IoT capability on business strategy formation. This research performed an empirical survey and analyzed the data to test the hypotheses in the research framework. The results confirmed the partial mediating effect of marketing intelligence capability in the link between IoT capability and business strategy formation. The paper then discussed the test results and elaborated on the managerial implications.