IoT Value Creation Through Supply Chain Analytics Capability

Business Intelligence and Analytics (BI&A) systems form the key information processing artifact that enables firms to process, store, and use the data generated by the Internet of Things (IoT) in the supply chain context. We empirically investigate how firms create value from IoT through a ‘capability creation’ path model for Supply Chain Analytics Capability. Partial least square analysis of primary survey data collected from 127 firms in India provides two key findings: 1) a modular system architecture and decentralized governance across supply chain partners are important precursors to build a robust Supply Chain Analytics Capability which can utilize IoT based data 2) Supply Chain Analytics Capability influences Firm Performance in two ways - directly, through Supply Chain Integration, and interactively with Supply Chain Integration. Overall, this study establishes the antecedents and consequences of Supply Chain Analytics Capability, which is an important precursor to value creation through IoT.