The effect of IoT capability on supply chain integration and firm performance: an empirical study in the UK retail industry

Abstract

PurposeThe purpose of this study is to use empirical data to examine the hierarchical impact of the Internet of things capability on supply chain integration (SCI), supply chain capability (SCC) and firm performance (FP) in the UK retail industry.Design/methodology/approachA deductive approach was employed to carry out this research. Structural equation modelling (SEM) was performed using the partial least square method (SmartPLS 3.3.3) to test theoretical predictions which underlie the relationships among Internet of things capability (IoTC), SCI, SCC and FP. Data are collected using an online survey completed by senior executives of 66 large, medium and small firms within the UK retail industry.FindingsThe empirical results of this research reveal that IoTC has a significant positive effect on the UK retail industry FP through the mediating role of SCI and SCC.Practical implicationsThe research results from this study provide useful management insights for firms within the retail industry into the development of effective strategies for integrating their supply chain alongside the adoption of IoTC into SCI, consequently leading to improvements in FP.Originality/valueAlthough previous studies have explored the impact of IoT on FP through the sequential mediating role of SCI and SCC, few have explored the impact of the IoT capability (IoTC) on FP through sequential mediators, i.e. SCI and SCC. This study examines the relationship between IoTC, SCI, SCC and FP in the UK retail industry supply chain to address this knowledge gap. Moreover, this study examines the effects of IoTC on FP by applying partial least square (PLS)-SEM techniques. Testing the sequential mediating role of SCI and SCI is undertaken, and the relationships among IoT-enabled SCI and SCC is analysed to improve FP. The robustness check's result through PLSpredict analysis also confirms the power of the model proposed in this study.

Revolutionizing Retail: Examining the Influence of Blockchain-Enabled IoT Capabilities on Sustainable Firm Performance

“…Many researchers have developed an opinion that LC has the potential to enhance resilience and enhance sustainability and performance [69]. Our finding also supports the arguments of Argyropoulou et al [40], which explain that LC can integrate various supply chain processes, including logistics, packaging, distribution, warehousing, return functions, order management, and monitoring. It also facilitates real-time information sharing among multiple members of a SC.…”

“…It also facilitates real-time information sharing among multiple members of a SC. This results in real-time visibility into supply chain operations, leading to improved overall firm performance [40].…”

“…Similarly, Argyropoulou et al [40] conducted an empirical study to examine how the Internet of Things (IoT) capacity affects the integration of supply chains and the performance of businesses in the retail industry in the United Kingdom. Their results resemble those of De Vass et al [31]; there is evidence showing that the capabilities of the Internet of Things (IoT) greatly enhance the integration of supply chains and, consequently, lead to an improvement in the overall performance of companies.…”

Strategic Supplier Partnership and Customer Relationship and Sustainable Supply Chain Management: The Mediating Role of the ICT in the Jordanian Pharmaceutical Sector in Jordan

“…Additionally, it enhances the efficiency of material flow, offers operational flexibility , streamlines financial processes, and enhances communication among individuals involved. In their study Argyropoulou et al (2023) examined the integration of IT platforms inside organizational supply chains, encompassing several factors such as strategic supplier partnerships, customer relationships, and ICT. The present study formulated the following hypotheses to examine the impact of the SCP (Strategic supplier partnership and customer relationship) on the ICT in the Jordanian pharmaceutical Sector: H3: Strategic supplier partnership has significant effect on the ICT in the Jordanian pharmaceutical Sector.…”

Impact of Digital Supply Chain on Sustainable Trade Credit Provision: Evidence from Chinese Listed Companies

“…In the process, they leverage digital technology to restructure the processes, coordination, organization and value of business in both the external and internal organization of supply chains, which is what DSC means [28]. Based on the theories of resource-based and dynamic capabilities [29,30], and applying various methods, which have included case studies, QCA, DID and questionnaire survey, scholars found the partial effects of DSC on enterprises, such as competitive advantage [31,32], supply chain management modeling and supply chain efficiency [25,33]. Due to the lack of empirical measurements for DSC, few studies could offer empirical evidence for the effects of DSC [34,35].…”