The impact of IoT on manufacturing firm performance: the moderating role of firm-level IoT commitment and expertise

Aishwarya Dash, Pushpesh Pant, S. P. Sarmah and M. K. Tiwari

International Journal of Production Research, 2024, vol. 62, issue 9, 3120-3145

Abstract: The Internet of Things has received enormous attention. Despite the lucrative potential, this study tries to look beyond the hype to understand how IoT impacts firm performance. Based on the information processing theory, we intend to explore how IoT influences the financial performance of firms. Firms, which realise the urgent need to adopt IoT might encounter a diverse set of challenges, like whether adoption will be profitable, the level of commitment they should devote, and whether to adopt as a first or second-mover. We want to comprehend such adoption challenges on the Indian manufacturing firm's financial performance. This study uses panel data from BSE 500 listed manufacturing firms and conducts multivariate analysis to understand the relationship between the IoT implementation proxies: IoT adoption, first-mover advantage, and firm performance in the light of IoT commitment and experts. The result indicates that IoT implementation has an insignificant effect on manufacturing firm performance. Meanwhile, the consideration of IoT commitment and experts jointly can enable a manufacturing firm to reap significantly positive financial outcomes. In other words, the IoT commitment and expertise positively moderate the relationship. The finding is useful to the decision-makers to address the firm-level adjustment before the mere introduction of IoT.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2023.2218499 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:62:y:2024:i:9:p:3120-3145

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2023.2218499

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().