Understanding Internet of Everything adoption in manufacturing SMEs: Insights from the technology-organization-environment model

Abstract

Adoption of the Internet of Everything (IoE) refers to how individuals, organizations, or industries implement and integrate IoE technologies into their operations, services, or daily practices. It involves using connected devices (as in IoT) and the intelligent coordination of people, processes, data, and things to create a unified digital ecosystem. This research examines the determinants of Internet of Everything (IoE) adoption within technological, organizational, and environmental contexts, conceptualizing IoE adoption as the dependent variable. A quantitative methodology was employed, with data collected from 169 organizational respondents and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The study investigates six independent variables: perceived usefulness, perceived cost, top management support, organizational readiness, government regulation support, and market competitive pressure. The Technology-Organization-Environment (TOE) theory served as the underpinning theory. The empirical findings reveal that perceived usefulness, top management support, and organizational readiness significantly influence IoE adoption. However, perceived cost, government regulation support, and market competitive pressure do not demonstrate significant effects. These results suggest that internal organizational factors, particularly leadership commitment and readiness, are more pivotal in driving IoE adoption than external pressures or financial considerations. This study contributes to the growing body of literature on digital transformation by offering a nuanced understanding of adoption dynamics in emerging technological ecosystems. Practitioners are encouraged to strengthen organizational preparedness and engage top management early in the adoption process to enhance the success of IoE initiatives.