INFLUENCING FACTORS OF TOE FRAMEWORK FOR THE ADOPTION OF IOT BASED SYSTEM IN SCM: A CASE OF SME'S IN KARACHI

Abstract

Purpose In this digital world, technologies and applications have been developed very rapidly which helps businesses to make their process smooth and transparent. The sole purpose ofthis study is to analyze the relationship between the variables in the SMEs industry ofthe geographical scope of Karachi Pakistan. This research helps us to understand the willingness ofthe IoT applications in the SME’s SC processes and operations. The more technology adaptive business means the more competitive advantage they have. With the technologies, we are entering into the new digital era where industrial 4.0 emerge very swiftly. This application which makes the system communicative brings transparency and helps the managers to make the right decision at the right time. Methodology & Design A structured questionnaire was developed to examine the relation between the dependent and independent variables. That sample ofthe questionnaire was distributed via email and digital channel to the 351 respondents who belong from the SMEs industry of Karachi Pakistan. With the help of confirmatory factor analysis and regression, correlation had been tested to state the study model. Findings With the help ofthe primary data collected from the respondents, it’s has been explored that there is a positive relationship between the dependent and independent variables. I.e. Technology, organizational, and environmental factors have a positive impact on the adoption ofthe IoT technology in the processes. Limitations As living in a third-world country, data collection is very difficult as the managers are not comfortable with sharing the data with outsiders. Besides this, the whole data was collected digitally during the pandemic Covid-19 which could bring the biasness to the study model. Furthermore, the resources were limited during this situation to execute the research model. Recommendations I would recommend that the study should go wider to the geographical scope from Karachi to Faisalabad as well the other industries of Pakistan. Moreover, additional factors can be added to the study which will help the researchers the accuracy in their study models. Primary data collection can also be enhanced by conducting person-to-person interviews or other data collection methods.