Internet of Things and organizational performance in the Tanzanian banks

Purpose The adoption of the Internet of Things (IoT) as a new technology is gaining traction in many business organizations in developing countries. The purpose of this study is to assess the effect of IoT on the organizational performance of Tanzanian banks. Design/methodology/approach For data collection, this study used a quantitative approach with a questionnaire. A total of 342 respondents were considered, with an 82.16% response rate. AMOS software was used to analyze data using structural equation modeling (SEM) as the primary technique. Findings The results revealed that the majority of the hypotheses tested in this study have a significant effect on organizational performance, as indicated by their p-value of 0.05. However, there is no statistically significant effect of performance expectancy on organizational performance by lowering IoT operation costs. Furthermore, the availability of IoT has no discernible effect on organizational performance by improving service quality. Practical implications The findings of this study inform policymakers to reformulate information and communication technologies policy to clearly spell out the adoption and implementation of the IoT as a new technological innovation for providing services not only in the banking sector but also in other service delivery organizations. In particular, the policy should have a clear vision of implementing an appealing, conducive and positive, meaningful service delivery environment, as well as achieving appropriate, successful, effective and sustainable organizational performance Originality/value As a result, this paper contributes to a better understanding of the factors (including performance expectancy, effort expectancy and accessibility) of IoT on organizational performance by influencing operational costs, service delivery speed and service quality. These factors were not adequately addressed in previous related studies, and they have a significant influence on organizational performance levels in Tanzanian banks.