Adoption of Internet of Things (IoT) among manufacturing SMEs in developing countries: a TOE framework perspective

This study develops and validates an eight-driver framework by integrating technology-organisation-environment (TOE) theory with institutional theory to enhance understanding of Internet of Things (IoT) adoption intentions. Small and medium enterprises (SMEs) in developing nations face challenges such as inadequate technological infrastructure, limited organisational resources, and external support. Focusing on Pakistani manufacturing SMEs, this research investigates the influence of the TOE framework and institutional theory on IoT adoption intentions, using data from 207 firms analysed through partial least squares structural equation modelling (PLS-SEM). The analysis supported seven of the proposed hypotheses, demonstrating positive impacts of TOE drivers on IoT adoption intentions, except for cost. Limitations include the restricted scope of data collection and the omission of pre-adoption phases. This research provides valuable insights into how IoT can strategically benefit manufacturing SMEs in Pakistan, offering guidance for policymakers, researchers, and practitioners. Recommendations include the need for SMEDA and the Pakistani government to improve technology adoption processes and implementation at the global level.