Impact of IoT, visibility and dynamic data information processing capabilities on firm performance

Despite extensive research in Internet of Things (IoT) domain, it has been discovered that studyinto the links and impacts of IoT, visibility, and DDIPCs is limited. Furthermore, theinterdependence of financial and operational flows is rarely acknowledged, and decisions arefrequently taken on the basis of other criteria. Current methods do not explicitly address thetrade-off between operational and financial decisions, as organisations are not always able toforecast the effect of a decision from both an operational and financial standpoint.This study provides measurements for IoT impact on company performance based on theresource-based view (RBV) theory and investigates the effects of DDIPCs and visibility onfinancial and operational performance, with DDIPCs serving as moderator and visibility asmediator. The primary drivers of IoT adoption were determined to be connectivity, flexibility,and agility of IoT devices through an extensive literature review. The findings based on thestructural equation modelling (SEM) analysis of data from a survey of 375 UK manufacturingenterprises imply that connectivity has a positive link with IoT use, whereas flexibility andagility have no direct relationship with IoT use. Flexibility and agility were found to have astronger favourable relationship with firm performance when paired with visibility andDDIPCs. The adoption of IoT has a statistically significant influence on firm performance onlywhen moderated by DDIPCs. This also explains why some manufacturing companies havestruggled to obtain expected results after implementing IoT. Hence, an organisation canachieve efficient performance only after utilising a combined force of these five key parametersof connectivity, flexibility, agility, visibility and DDIPCs. Furthermore, the degree to whichIoT is used has also an impact on company performance and is dependent on the utilisation ofinformation visibility. It necessitates the businesses to prioritise the adoption of both DDIPCsand visibility instead of focusing solely on IoT implementation.