Translating IoT into Public Value: Business Model Innovation and Actor-Network Dynamics in Municipal Broadband Firms

The digital transformation of the public sector has created new opportunities for innovation and efficiency, particularly through technologies such as the Internet of Things (IoT). In this process, municipally owned network operators (stadsnät) play a key role as both infrastructure providers and enablers of technological development. While IoT offers great potential for the creation of new digital services, its implementation also raises questions about how public actors adapt their business models and how various actors influence the use of technology in practice. This study explores the implementation of IoT in municipally owned network operators, with a particular focus on how business models are innovated and how actor-networks emerge and evolve over time. The empirical material consists of semi-structured interviews with representatives from municipal networks, local governments, technology providers, and academia. The study combines theoretical perspectives from Business Model Innovation (BMI) and Actor-Network Theory (ANT). By integrating these perspectives, the study sheds light on both how business models are shaped and how socio-technical networks develop in the context of IoT. The findings suggest that business model innovation cannot be understood in isolation from its network context. Key actors, including operational staff, procurement regulations, and the technology itself, play critical roles in the translation process. Moreover, individual champions have often driven the work forward, making the implementation process vulnerable to personal engagement. The results emphasize that IoT implementation in the public sector is not linear, but rather shaped by negotiation, resistance, and mutual influence among actors. The study contributes to a more nuanced understanding of how technical and organizational innovation are intertwined, and highlights the importance of broadening the scope of analysis when developing sustainable business models. Further research is needed to explore how collaboration between actors can be enhanced and how structural barriers such as regulatory complexity and resource limitations can be addressed in future digitalization efforts.