The relationship between IoT-based information integration, decision-making uncertainty, and supply chain performance

Abstract

This paper explores the interplay between the Internet of Things (IoT)-based information integration and decision-making uncertainty and their combined impact on supply chain performance. Survey data on 275 supply chain managers is analysed using partial least squares structural equation modelling to illustrate these relationships. IoT-based information integration and decision-making uncertainty is found to be a complex interaction between information accuracy, quality and efficiency; environmental complexity and richness; and demand distortion. The interactions between these factors partially mediate supply chain performance on cost management and production operations. This study provides empirical evidence for the information processing theory-based conceptualisation of the interaction between IoT-based information integration and decision-making uncertainty, and their interactions have a partial mediating role in improving supply chain performance. The research findings help supply chain managers develop a performance-oriented supply chain evaluation system to forecast the outcomes of implementing IoT-based information integration.