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Communications of the Association for Information Systems

Author ORCID Identifier

Sandip Rakshit: https://orcid.org/0000-0001-5735-983X

Tripti Paul: https://orcid.org/0000-0003-1815-1643

Abstract

As supply chains face increasing volatility and technological disruption, understanding how the Internet of Things (IoT) enables innovation has become crucial. The study discusses how the IoT adoption triggers innovation potentials at three supply chain levels, which include manufacturing, transportation, and distribution levels, and how innovation potentials at each supply chain level are applied to supply chain innovation. The research has a sequential mixed-method design and is based on the Resource-Based View (RBV), which integrates qualitative data acquired through 19 interviews and 2 focus groups with quantitative data analysis of 325 responses on a firm level. The application of structural equation modeling in R proves that the adoption of IoT would have a significant improvement in innovation in all three phases, and transportation innovation would respond most optimally. The total amount of stage-level innovations can be attributed to the variance in total IT-enabled supply chain innovation by 83.3 percent, with particular focus on the strategic importance of matching the digital sources with operational situations. Giving the stage-sensitive insight into the role of IoT in the promotion of innovation, this research adds to the existing literature on digital transformation and supply chains and presents managers with practical advice in the context of integrating the implementation of IoT across the functional boundary. It ends with the description of the ways in which the stage specific digital strategies can speed up innovation and competitiveness in time-constrained environments.

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