The influence of HR practices and diffusion of innovation theory towards adoption of internet of things in SMEs

The advent of digitalisation and internet of things (IOT) has changed existing values of businesses and organisations. Although IOT accelerates business performance however, the adoption of IOT is scarce among SMEs employees. This study assimilates diffusion of innovation theory and HR practices to investigate employee behaviour towards adoption of IOT. The framework of this research is tested with 274 responses. Data were analysed with structural equation modelling (SEM). Results indicate that exogenous variables had shown substantial variance in determining employee attitude (R2 51.1%) and adoption of IOT (R2 55.2%). The findings of the structural equation model had revealed that results demonstrability will strengthen the relationship between employee attitude and adoption of IOT. This study disclosed that factors such as compatibility, innovativeness, training and development, work environment, reward and recognition and employee attitude are the most influential factors to enhance employee adoption behaviour towards IOT in SMEs.