The effect of “Internet of Things” on supply chain integration and performance: An organisational capability perspective

Abstract

The Internet of things (IoT) is a next generation of Internet connected embedded ICT systems in a digital environment to seamlessly integrate supply chain and logistics processes. Integrating emerging IoT into the current ICT systems can be unique because of its intelligence, autonomous and pervasive applications. However, research on the IoT adoption in supply chain domain is scarce and acceptance of the IoT into the retail services in specific has been overly rhetoric. This study is drawn upon the organisational capability theory for developing an empirical model considering the effect of IoT capabilities on multiple dimensions of supply chain process integration, and in turn improves supply chain performance as well as organisational performance. Cross-sectional survey data from 227 Australian retail firms was analysed using structural equation modelling (SEM). The results indicate that IoT capability has a positive and significant effect on internal, customer-, and supplier-related process integration that in turn positively affects supply chain performance and organisational performance. Theoretically, the study contributes to a body of knowledge that integrates information systems research into supply chain integration by establishing an empirical evidence of how IoT-enabled process integration can enhance the performance at both supply chain and organisational level. Practically, the results inform the managers of the likely investment on IoT that can lead to chain’s performance outcome.

Internet of Things for improving Supply Chain Performance: A Qualitative Study of Australian Retailers

“…Internet of Things (IoT) is defined as a global platform of Internet connected smart objects that allows things to connect anytime, anywhere using any network or service (Atzori, Iera, & Morabito, 2010;Borgia, 2014;de Vass, Shee & Miah, 2018). It is viewed as an extension of legacy ICT systems (e.g.…”

“…However, the limitation of traditional ICT in sensing and capturing additional transactional data has paved the way to emerging services and applications such as IoT that facilitate interconnection of physical things with digital world (Constantinides, Kahlert, & de Vries, 2017;de Vass et al, 2018). Further, it offers a safe and trustworthy platform to exchange information related to goods and services in a global supply chain (Mishra et al, 2016).…”

“…Further, it offers a safe and trustworthy platform to exchange information related to goods and services in a global supply chain (Mishra et al, 2016). However, there is limited empirical evidence on its effect on supply chain and firm performance (Mishra et al, 2016), except the recent study done by de Vass, Shee, & Miah (2018).…”

Impact of Supervisors’ Perceived Communication Style on Subordinate’s Psychological Capital and Cyberloafing

“…Internet usage has changed drastically in the past decade with the introduction of personal electronic devices like the iPhone, iPad, Android, and others (de Vass, Shee, & Miah, 2018). It has become an embracing aspect of today's working life and is known to enhance organizational and personal productivity.…”

Designing Smart Supplier Chain Management Model under Big Data and Internet of Things Environmen

“…Integrating emerging IoT into the current ICT systems can be unique because of its intelligence, autonomous and pervasive applications [11]. IoT bridges the gap between physical and digital world by synchronizing the information flow with the physical flow for greater supply chain integration.…”