Realizing IoT-enabled Innovations in SMEs – A Dynamic Capability Perspective

Manufacturing companies in Germany face increasing global competition and must innovate and adapt products and processes to remain competitive. The utilization of the Internet of Things (IoT) for manufac-turing is one way to improve processes but it also presents challenges. Data privacy regulations are among the constraints that influence the realization of IoT-enabled innovations. This paper aims to facilitate the realization of IoT-enabled innovations from a consulting and vendor perspective by drawing on theoretical considerations about dynamic capabilities. It contributes to the adoption of IoT by providing relevant capa-bilities. Seven experts across the IoT ecosystem were interviewed in-depth about their realized projects. Based on an inductive content analysis, 24 capabilities are categorized into sensing and seizing IoT-enabled innovations, as well as capabilities for re-configuring the firm's resources.