Exploring IoT integration challenges: Causal relationships and strategic implications for business models

Abstract

Implementing the Internet of Things (IoT) into business models has become an influential catalyst, supporting novel revenue generation, improved operational efficiencies, and competitive dominance. Still, its implementation has been challenged by barriers to technological, organizational, and societal dimensions. The current study utilizes the Fuzzy Decision-Making Trial and Evaluation Laboratory (Fuzzy DEMATEL) technique to comprehensively identify and assess the interconnections among fundamental IoT integration challenges. Thirteen crucial components were analysed, influencing interoperability challenges, data security and privacy issues, standardized issues, high initial investment, scaling obstacles, and adverse environmental effects. The results indicate a clear differentiation between seven cause variables such as lack of skilled workforce, interoperability issues, standardization gaps, high initial investment, regulatory issues, resistance to change, and data security and privacy issues were the most influential challenges and six effects (dependent) factors including vendor dependency risks were the most impacted effect factors. These findings highlight the necessity to tackle fundamental problems, including standardization, workforce development, and regulatory clarity. This research strengthens theoretical aspects in IoT using Fuzzy DEMATEL by delivering a robust decision-making roadmap. The results highlights actionable practical recommendations for regulators and businesses for effective resource utilization to improve their IoT adoption in compliance with sustainable development. Businesses can utilize the full potential of IoT by addressing such problems and promote innovative environment to ensure a sustainable and resilient future.