A Conceptual Framework for Understanding the Impact of Internet of Things on Supply Chain Management

Author(s):

  • Mohamed Ben-Daya1 (American University of Sharjah, Sharjah, UAE )
  • Elkafi Hassini1 (McMaster University, Hamilton, Canada)
  • Zied Bahroun1 (American University of Sharjah, Sharjah, UAE)

Abstract:
We propose a conceptual framework for understanding the impact of the Internet of Things (IoT) on Supply Chain Management (SCM). We adopt the resource-based view theory and argue that IoT resources empower internal supply chain capabilities to address external challenges and, in the process, enhance the supply chain competitiveness. We explain how IoT will likely impact supply chain capabilities and indirectly enhance SCM competitive advantages, which in turn help meet SCM challenges. We provide some managerial implications and show the need for new decision models dictated by the IoT environment. Finally, we outline the limitations of the proposed framework and suggest future research directions.

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