Antecedents and outcomes of industrial Internet of Things adoption for supply chain innovation

Purpose The industrial Internet of Things (IoT) creates new possibilities for more effective supply chain management. However, its adoption and resulting outcomes remain one of the underexplored areas within the growing literature on IoT in supply chain management. Therefore, the purpose of this study is to explore how institutional pressures link to industrial IoT adoption and further examine the relationship between this adoption and two types of supply chain innovation (SCI) in terms of the change and novelty introduced: radical SCI and incremental SCI. Design/methodology/approach A structured, online survey was used to collect data from managers of manufacturing firms in Jordan. The 241 responses the authors received were analysed using covariance-based structural equation modelling. Findings The authors found that coercive, normative and mimetic pressures positively relate to the adoption of industrial IoT. Additionally, industrial IoT adoption positively associates with radical SCI and incremental SCI, with a greater association observed with incremental SCI. Research limitations/implications This study delved only into the direct relationship between industrial IoT and SCI. Therefore, future scholarship may want to explore the boundary conditions under which industrial IoT does (or does not) enhance radical SCI and incremental SCI. Practical implications Managers need to enhance organisational, technological and human readiness to successfully integrate industrial IoT in the supply chain to reap its innovation benefits. Originality/value This study offers contextual insights into the role of institutional conditions in the adoption of industrial IoT in supply chain management in a developing country. This study also highlights the role of industrial IoT in shaping different dimensions of SCI.