The Influence of Internet of Things (IoT) on Operational Efficiency and Competitive Advantage in the Information Technology Industry in Indonesia
Main Article Content
Abstract
This study investigates the impact of Internet of Things (IoT) adoption on operational efficiency and competitive advantage within the Information Technology (IT) industry in Indonesia. A quantitative research approach was employed, utilizing a cross-sectional survey design to collect primary data from 170 IT companies operating in Indonesia. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) algorithm was utilized to analyze the data and test the research hypotheses. The findings reveal that IoT adoption positively influences both operational efficiency and competitive advantage within the Indonesian IT industry. These results underscore the transformative potential of IoT technologies in enhancing organizational performance and strategic positioning in the digital era. The study contributes to the existing literature by providing empirical evidence on the benefits of IoT adoption in the context of the Indonesian IT industry, offering insights for policymakers, practitioners, and researchers seeking to harness the potential of IoT technologies for sustainable growth and innovation.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
L. Romeo, A. Petitti, R. Marani, and A. Milella, “Internet of Robotic Things in Smart Domains: Applications and Challenges,” Sensors, vol. 20, no. 12. 2020. doi: 10.3390/s20123355.
M. Majid et al., “Applications of Wireless Sensor Networks and Internet of Things Frameworks in the Industry Revolution 4.0: A Systematic Literature Review,” Sensors, vol. 22, no. 6. 2022. doi: 10.3390/s22062087.
M. Hamzah et al., “Distributed Control of Cyber Physical System on Various Domains: A Critical Review,” Systems, vol. 11, no. 4. 2023. doi: 10.3390/systems11040208.
R. Dornberger, T. Inglese, S. Korkut, and V. J. Zhong, “Digitalization: Yesterday, Today and Tomorrow,” 2018. doi: 10.1007/978-3-319-74322-6.
H. Taherdoost, “An Overview of Trends in Information Systems: Emerging Technologies that Transform the Information Technology Industry,” Cloud Comput. Data Sci., pp. 1–16, Aug. 2022, doi: 10.37256/ccds.4120231653.
Y. Indriati, “Application of Internet of Things to Ensure Improved Performance within the Internal Supply Chain Unit of an Organization,” Int. J. Commun. Networks Inf. Secur., vol. 14, pp. 121–135, Dec. 2022, doi: 10.17762/ijcnis.v14i1s.5620.
F. Maulana, G. Pangestu, M. Febriantono, R. Arifuddin, and V. Widartha, Visualization Analysis and Trends in Indonesian Internet of Things Research Using Bibliometrics. 2022. doi: 10.1109/ICISIT54091.2022.9873010.
I. Hakim, M. Singgih, and I. Gunarta, “Critical Success Factors for Internet of Things (IoT) Implementation in Automotive Companies, Indonesia,” Sustainability, vol. 15, p. 2909, Feb. 2023, doi: 10.3390/su15042909.
M. Soori, B. Arezoo, and R. Dastres, “Internet of things for smart factories in industry 4.0, a review,” Internet Things Cyber-Physical Syst., vol. 3, pp. 192–204, 2023, doi: https://doi.org/10.1016/j.iotcps.2023.04.006.
M. Achouch et al., “On Predictive Maintenance in Industry 4.0: Overview, Models, and Challenges,” Applied Sciences, vol. 12, no. 16. 2022. doi: 10.3390/app12168081.
S. P. Gayialis, E. P. Kechagias, G. D. Konstantakopoulos, and G. A. Papadopoulos, “A Predictive Maintenance System for Reverse Supply Chain Operations,” Logistics, vol. 6, no. 1. 2022. doi: 10.3390/logistics6010004.
A. Mohammed and A. Sabahath, “Applications and Impact of Internet of Things in Digital Marketing,” 2023, pp. 161–186. doi: 10.4018/978-1-6684-8166-0.ch009.
S. Khan, H. Magd, B. Khatri, S. Arora, and N. Sharma, “Critical Success Factors of Internet of Things and Digital Marketing,” 2023. doi: 10.4018/978-1-6684-8166-0.ch012.
I. B. and S. Mathew, “Impact of IoT Applications Using Digital Marketing,” 2023, pp. 31–50. doi: 10.4018/978-1-6684-8166-0.ch003.
I. Abashidze and M. Dąbrowski, “Internet of Things in Marketing: Opportunities and Security Issues,” Manag. Syst. Prod. Eng., vol. 24, pp. 217–221, Dec. 2016, doi: 10.2478/mspe-01-04-2016.
Y. Sullivan, S. F. Wamba, and M. Dunaway, “Internet of Things and Competitive Advantage: A Dynamic Capabilities Perspective,” J. Assoc. Inf. Syst., vol. 24, no. 3, pp. 745–781, 2023, doi: 10.17705/1jais.00807.
M. S. Haripriya, “The role of culture code and IoT technology in successful implementation of marketing intelligence system,” Tech. Res. Organ. India, vol. 7, no. 11, pp. 2394–0697, 2020, [Online]. Available: https://ssrn.com/abstract=3778896
P. Mikalef, J. Krogstie, I. O. Pappas, and P. Pavlou, “Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities,” Inf. Manag., vol. 57, no. 2, p. 103169, 2020, doi: https://doi.org/10.1016/j.im.2019.05.004.
A. Abubakar and H. H. Abdullah, “Building marketing intelligence capability with the internet of things for competitiveness: empirical evidence of selected retail companies in Oman,” J. Glob. Bus. Adv., vol. 14, no. 6, pp. 750–767, Jan. 2021, doi: 10.1504/JGBA.2021.125016.
M. Falahat, T. Ramayah, P. Soto-Acosta, and Y.-Y. Lee, “SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance,” Technol. Forecast. Soc. Change, vol. 152, p. 119908, 2020.
L. Foschini, G. Martuscelli, R. Montanari, and M. Solimando, “Edge-enabled Mobile Crowdsensing to Support Effective Rewarding for Data Collection in Pandemic Events,” J. Grid Comput., vol. 19, no. 3, 2021, doi: 10.1007/s10723-021-09569-9.
H. Liang, Z. Zhang, C. Hu, Y. Gong, and D. Cheng, “A Survey on Spatio-Temporal Big Data Analytics Ecosystem: Resource Management, Processing Platform, and Applications,” IEEE Trans. Big Data, vol. 10, no. 2, pp. 174–193, 2024, doi: 10.1109/TBDATA.2023.3342619.
Y. Pramita, K. Sukesi, and R. Safitri, “Covid-19 Pandemic Digitalization Training For Agriculture Sustainable Development of Micro and Small Enterprises In KWT Sri Rejeki,” HABITAT, vol. 34, pp. 81–95, Apr. 2023, doi: 10.21776/ub.habitat.2023.034.1.8.
M. Harisudin, K. Kusnandar, E. Riptanti, N. Setyowati, and I. Khomah, “Determinants of the Internet of Things adoption by millennial farmers,” AIMS Agric. Food, vol. 8, pp. 329–342, Mar. 2023, doi: 10.3934/agrfood.2023018.
J. Sirait, H. Alrasyid, and N. Aurora, “Strengthening The Defense Industry’s Independence Through The Internet Of Things In The Manufacturing Sector: A Review,” Int. J. Sci. Technol. Manag., vol. 4, pp. 335–340, Mar. 2023, doi: 10.46729/ijstm.v4i2.764.
G. Kiradoo, “The Prominence of IoT in Enhancing Business Success in the Context of Industry 4.0,” Recent Prog. Sci. Technol. Vol. 6, pp. 188–203, 2023, doi: 10.9734/bpi/rpst/v6/18934d.
S. Mukherjee, M. Baral, D. V. Chittipaka, R. Nagariya, and B. Patel, “Achieving organizational performance by integrating industrial Internet of things in the SMEs: a developing country perspective,” TQM J., vol. 36, Mar. 2023, doi: 10.1108/TQM-07-2022-0221.
S. Kisanjara, “Internet of Things and organizational performance in the Tanzanian banks,” Inf. Discov. Deliv., vol. 51, Feb. 2023, doi: 10.1108/IDD-04-2022-0031.
K. Kusnandar, M. Harisudin, E. Riptanti, I. Khomah, N. Setyowati, and R. Qonita, “Prioritizing IoT adoption strategies in millennial farming: An analytical network process approach,” Open Agric., vol. 8, Mar. 2023, doi: 10.1515/opag-2022-0179.
M. Yopan, R. Kasali, E. Balqiah, and M. Pasaribu, The Role of Digital Leadership, Customer Orientation and Business Model Innovation for IoT Companies. 2022.
I. Ali, M. Aboelmaged, K. Govindan, and M. Malik, “Understanding the key determinants of IoT adoption for the digital transformation of the food and beverage industry,” Ind. Manag. Data Syst., vol. 123, no. 7, pp. 1887–1910, Jan. 2023, doi: 10.1108/IMDS-02-2022-0082.
B. Usman, S. Ilham, and F. Nurrahmi, “Structural equation modeling of internet of things (IoT) adoption for Indonesian Village-Owned Enterprises (BUMDes),” Inf. (Jurnal Inform. dan Sist. Informasi), vol. 51, pp. 169–194, Jul. 2021, doi: 10.21831/informasi.v51i1.40170.
T. Anas and E. Cahyawati, “Strategic Investment Policies for Digital Transformation,” J. Southeast Asian Econ., vol. 40, no. 1, pp. 96–126, Apr. 2023, [Online]. Available: https://www.jstor.org/stable/27211226