The role of Internet of Things dimensions in the development of e-commerce of Small and medium-sized enterprises

Document Type : Research Paper

Authors

1 Associate Professor of the Department of Business Administration, Faculty of Humanities and Social Sciences, University of Ilam, Ilam, Iran

2 MSc of the Department of Business Administration, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

10.22034/jbar.2024.20601.4351

Abstract

Introduction
E-commerce is one of the important areas of innovation in computer technology that can help companies achieve a sustainable competitive advantage. The increasing rate of online business transactions and the innovative attitudes of customers show the necessity of using e-commerce in businesses. E-commerce technology can speed up communication within the company and make the company's resource management more efficient. The seamless transfer of information through shared electronic files and networked computers increases the efficiency of business processes such as documentation, data processing, and other support functions. Small and medium-sized companies are considered the economic backbone of many countries, so the access of these types of companies to the Internet of Things technology and their operationalization is increasingly important. Adopting e-commerce for small and medium-sized enterprises is not easy in part because of the constant change in e-commerce technology and the different needs of local and global businesses. In addition, the cost of acquiring e-commerce infrastructure is high for many SMEs, especially in developing economies. Therefore, the gap between small and medium enterprises and large enterprises increases, and this may affect the competitiveness and survival of SMEs in the long run. The Internet of Things can play a role in the development of e-commerce when its security is guaranteed. Many companies ignore their security index to keep their costs low to gain more profit, while the Internet of Things is exposed to hackers and malware and can make a company vulnerable to bankruptcy and destruction. draw On the other hand, the discussion of the quality and operational functions of the Internet of Things is related to the efficiency of this field, and these two indicators are more prominent in the design of the Internet of Things field, and businesses should consider these two indicators according to the type of business, business size, business strategy, etc. .. Consider. The purpose of this research is to determine the role of the Internet of Things in the development of e-commerce among small and medium enterprises in Sanandaj.
Methodology
This research has an applied purpose and is a descriptive-survey type of study. The statistical population of this research consists of 163 small and medium business owners of Sanandaj city. The number of sample members was 115 using Cochran's formula. The selection from among the community members was done using an easy random sampling method. The main tool for collecting research data is the researcher-made questionnaire. The validity of this questionnaire was examined at two levels of structure and content. Factor loadings obtained through SMART PLS software were obtained for each of the questions above 0.4. The content validity of the questionnaires was confirmed by 6 expert professors in the field of management with specializations (in marketing, entrepreneurship, human resources, policy-making, business systems, and information technology). The reliability of the research questionnaire was also obtained using Cronbach's alpha test above 0.7 and it was also confirmed at the composite reliability level. SPSS and SMART PLS software were used to analyze the research data. In the research model, a total of 40 items (IT knowledge 8 items, IOT security 8 items, IOT quality 8 items, IOT functions 8 items, and EC e-commerce development 8 items) were included in the model. Each of the variables includes 4 indicators. First, first-order factor analysis (items as indicators) then second-order factor analysis (components as indicators), and finally structural equations were performed for the indicators. The analysis of the model was done in three stages. In the first stage, the external model (measurement model), in the second stage, the internal model (structural model) and in the last stage, the overall model was examined. After fitting the first model, if an item had a factor load less than 0.4, it was removed (in the research model, none of the items had a factor load less than 0.4) and then the final model was fitted.
Results and Discussion
The results of the first hypothesis of the research showed that IT knowledge has a positive and significant effect on the development of electronic commerce (EC) with a coefficient of 0.491. Information technology provides the best platform for preparing new online business ideas using e-commerce and is an infrastructure that strengthens electronic or online exchanges of goods and services. The results of the second hypothesis of the research showed that IOT security has a positive and significant effect on the development of electronic commerce (EC) with a coefficient of 0.566. Secure communication is the main factor for maintaining privacy and confidentiality of data among electronic businesses. The results of the third hypothesis of the research showed that the quality of IOT has a positive and significant effect on the development of electronic commerce (EC) with a coefficient of 0.413. The Internet of Things is driving technological changes and the development of new products and services that rely heavily on the quality of data collected by IoT devices. The results of the fourth hypothesis of the research showed that IOT functions have a positive and significant effect on the development of electronic commerce (EC) with a coefficient of 0.428. Operationalizing the Internet of Things in SMEs requires complete visibility and control over all IoT hardware and software components. Design, development, provisioning, monitoring, support, and maintenance practices must be agile and deliver business value without increasing operational risk.
Conclusion
The use of the Internet of Things in e-commerce has revolutionized the way businesses communicate with their customers around the world. The Internet of Things can transform businesses by automating the processes of inventory management, automation, saving time and money, and... Researches are concentrated in the area of larger companies. However, it is SMEs that are the economic backbone of many countries, which is why it is increasingly important for these types of companies to access these technologies and make them operational. As the number of businesses using the Internet of Things has increased, so has e-commerce. The future of SMEs is also predicted to be electronic, as most of the growth among businesses is now happening online.

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