Understanding IoT adoption in Indonesia facility management: the role of perceived value in mediating innovation characteristics and adoption intention

Purpose This study aims to examine the role of perceived value as a mediating factor between innovation characteristics and Internet of Things (IoT) adoption intention in facility management services. Specifically, it investigates how the characteristics of innovation outlined in Diffusion of Innovation (DOI) Theory influence customers’ perceived value of SmartClean IoT solutions and their adoption intentions. Design/methodology/approach This study uses a quantitative method by analyzing survey responses from Indonesian facility management service customers. The research model combines DOI characteristics (relative advantage, compatibility and complexity) with perceived value serving as a mediator. The study uses structural equation modeling to examine the proposed relationships between variables, using data gathered through a detailed customer survey. Findings Initial surveys indicate a significant gap between awareness and adoption of IoT solutions in facility management, with 72.5% of customers familiar with IoT concepts but only 47.5% aware of SmartClean IoT solutions, and among those aware, only 42.1% have adopted the technology. The study reveals that compatibility has the strongest positive influence on perceived value (β = 0.465; t-statistic = 8.035), followed by relative advantage (ß = 0.353; t-statistic = 5.775), while Complexity shows a significant negative influence (β = −0.442; t-statistic = 7.076). Perceived value strongly influences intention to adopt (ß = 0.555; t-statistic = 10.317). The model explains 53.8% of the variance in perceived value and 30.8% of the variance in intention to adopt, with Perceived Value successfully mediating all relationships between DOI characteristics and adoption intention. Research limitations/implications This study focuses on a single facility management service provider in Indonesia, which may limit the generalizability of findings to other contexts. Additionally, as IoT technology rapidly evolves, the findings represent a snapshot in time and may need periodic updates to remain relevant. From a theoretical perspective, the study demonstrates the importance of considering perceived value as a mediating factor in technology adoption models, suggesting that future research should explore this relationship in other technological contexts and industries. Originality/value This study contributes to IS literature by providing the first empirical investigation of IoT adoption in Indonesia’s facility management sector, integrating DOI and VAM to reveal how innovation characteristics influence perceived value, which fully mediates adoption intentions, and offering actionable insights for IoT vendors and policymakers targeting service-intensive industries in emerging economies.