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.

Adoption Barriers of IoT in Large Scale Pilots

“…In this study, diffusion of innovation theory (DOI) [9] has been used to guide the data collection and analysis process. Diffusion of innovation theory is a widely accepted theory to explain technology adoption over time [67]. According to Rogers, there are five steps for adoption of innovations namely, knowledge, persuasion, decision, implementation and confirmation.…”

Analysis of Factors Influencing Adoption of Internet of Things: A System Dynamics Approach

“…control, system configuration, information storage, and management [16]. According to Voas et al [38], the security implications of IoT are creating hurdles for its wider adoption.…”

“…81% of Indian organizations felt that digital transformation occurs due to the evolution of IoT [11]. In India, Industries like manufacturing, logistics, automotive and transportation, and utilities are expected to be the highest adopter of IoT, whereas healthcare, retail, and agriculture industries are predicted to have significant contributions in IoT adoption [ Very few studies such as Caro et al [13]; Hu et al [14]; Mital et al [15]; and Mengru Tu [16] have examined IoT adoption in the organization. Prior studies related to IoT adoption highlighted only the factors like perceived usefulness, perceived ease of use, attitude towards adoption, adoption intention, perceived behavioral control, and perceived risks like security/privacy risks.…”

“…The empirical validation of this model was performed using Structural EquationModeling. Mengru Tu[16] identified the determinants of IoT adoption intention in logistics and supply chain management using a mixed-method research approach. To understand the impact of IoT on logistics and supply chain management, qualitative analysis was done using the grounded theory methodology.…”

Big Data Research on the Green Internet of Things in New Smart-Logistics

“…The ever-growing amount of data available has created the need to develop business intelligence technologies that are summarized as large data analytics [15].…”