Achieving Sustainable Performance: Application of the Internet of Things Capability in Carrying Out Appropriate Environmental Actions in Small and Medium Enterprises

Document Type : Research Paper

Authors

1 Professor, Department of Management Science, Yazd University, Yazd, Iran

2 Assistant Professor, Department of Management, Faculty of anagement and Innovation, Shahid Ashrafi Esfahani University, Isfahan, Iran

3 Ph.D. Student in Industrial Management (Production and Operations), Department of Management Science, Yazd University, Yazd, Iran

10.30473/ee.2025.72248.2773

Abstract

Despite the countless advantages of small and medium companies in increasing employment, increasing national production, and improving the quality of life of society, the lack of continuity of their performance is recognized as one of the main challenges in the country. The aim of the current research is to investigate the role of Internet of Things capabilities and appropriate environmental actions on the performance sustainability of Small and Medium Enterprises (SMEs). The statistical population of this research is the senior managers of SMEs in five selected provinces of the country (Isfahan, Tehran, Fars, Razavi Khorasan, and East Azariabjan) and 42 people were selected as a sample using the snowball sampling method. In this research, using the fuzzy Delphi approach, performance sustainability criteria and environmental measures and processes identified from the research literature were localized according to the small and medium companies of five selected provinces of the country. Next, by using the first step of the fuzzy house of quality matrix, the relationship of Internet of Things capabilities in carrying out appropriate environmental actions was investigated. The results of this section showed that the Internet of Things has the greatest impact on performing optimal processes, environmental performance assessment, and commitment to environmental standards. Also, the results of the second phase of the fuzzy house of quality matrix showed that the implementation of appropriate environmental actions has the greatest effect on achieving the reduction of greenhouse gas emissi=-ns, energy and resource consumption, customer satisfaction, the quality of manufactured products, and the amount of income in the company.

Keywords

Main Subjects


Abbaszadeh, M., Shirouyehzad, H., & Asadpour, M. (2023). “A fuzzy QFD approach to prioritize capabilities and enablers of organizational agility based on its drivers: a case study”. International Journal of Quality & Reliability Management, 40(8), 1859-1875.   https://doi.org/10.1108/IJQRM-09-2021-0323
Abdelhamied, H. H., Elbaz, A. M., Al-Romeedy, B. S., & Amer, T. M. (2023). “Linking green human resource practices and sustainable performance: The mediating role of job satisfaction and green motivation”. Sustainability, 15(6), 4835. https://doi.org/10.3390/su15064835
Afshar Jahanshahi, A., Al‐Gamrh, B., & Gharleghi, B. (2020). “Sustainable development in Iran post‐sanction: Embracing green innovation by small and medium‐sized enterprises”. Sustainable development, 28(4), 781-790.   https://doi.org/10.1002/sd.2028
Ahmad, M. S., Fei, W., Shoaib, M., & Ali, H. (2024). “Identification of Key Drivers for Performance Measurement in Sustainable Humanitarian Relief Logistics: An Integrated Fuzzy Delphi-Dematel Approach”. Sustainability, 16(11), 4412. https://doi.org/10.3390/su16114412
Ahmad, S., Abdullah, A., & Talib, F. (2021). “Lean-green performance management in Indian SMEs: a novel perspective using the best-worst method approach”. Benchmarking: An International Journal, 28(2), 737-765.   https://doi.org/10.1108/BIJ-05-2020-0255
Akomea, S. Y., Agyapong, A., Ampah, G., & Osei, H. V. (2023). “Entrepreneurial orientation, sustainability practices and performance of small and medium enterprises: evidence from an emerging economy”. International Journal of Productivity and Performance Management, 72(9), 2629-2653.   https://doi.org/10.1108/IJPPM-06-2021-0325
Bahrami, M. R., Hashemzadeh, G. R., Shahmansouri, A., & Fathi Hefeshjani, K. (2023). “Analyzing Effective Components in Industry 4.0 Readiness Assessments”. Journal of Industrial Management Perspective, 13. 267-297, (2). [In persian] https://doi.org/10.48308/jimp.13.2.267.
Bakioglu, G. (2024). “Selection of sustainable transportation strategies for campuses using hybrid decision-making approach under picture fuzzy sets”. Technological Forecasting and Social Change, 206, 123567. https://doi.org/10.1016/j.techfore.2024.123567
Cao, Y., Jia, F., & Manogaran, G. (2019). “Efficient traceability systems of steel products using blockchain-based industrial Internet of Things”. IEEE Transactions on Industrial Informatics, 16(9), 6004-6012. https://doi.org/10.1109/TII.2019.2942211
De, D., Chowdhury, S., Dey, P. K., & Ghosh, S. K. (2020). “Impact of lean and sustainability-oriented innovation on sustainability performance of small and medium sized enterprises: a data envelopment analysis-based framework”. International Journal of Production Economics, 219, 416-430.   https://doi.org/10.1016/j.ijpe.2018.07.003
Domingo, R., & Aguado, S. (2015). “Overall environmental equipment effectiveness as a metric of a lean and green manufacturing system”. Sustainability, 7(7), 9031-9047. https://doi.org/10.3390/su7079031
Guoyan, S., Khaskheli, A., Raza, S. A., & Ahmed, M. (2022). “Nonlinear impact of municipal solid waste recycling and energy efficiency on environmental performance and economic growth: evidence from non-parametric causality-in-quantiles”. Environmental Science and Pollution Research, 29, 16066-16081.   https://doi.org/10.1007/s11356-021-16721-1
Habidin, N. F., Zubir, A. F. M., Conding, J., Jaya, N. A. S. L., & Hashim, S. (2013). “Sustainable manufacturing practices, sustaining lean improvements and sustainable performance in Malaysian automotive industry”. World Review of Entrepreneurship, Management and Sustainable Development, 9(4), 444-459. https://doi.org/10.1504/WREMSD.2013.056755.
Haque, F., & Ntim, C. G. (2018). “Environmental policy, sustainable development, governance mechanisms and environmental performance”. Business Strategy and the Environment, 27(3), 415-435. https://doi.org/10.1002/bse.2007.
Hussain, N., Rigoni, U., & Cavezzali, E. (2018). “Does it pay to be sustainable? Looking inside the black box of the relationship between sustainability performance and financial performance”. Corporate Social Responsibility and Environmental Management, 25(6), 1198-1211. https://doi.org/10.1002/csr.1631
Iwaro, J., Mwasha, A., Williams, R. G., & Zico, R. (2014). “An Integrated Criteria Weighting Framework for the sustainable performance assessment and design of building envelope”. Renewable and Sustainable Energy Reviews, 29, 417-434. https://doi.org/10.1016/j.rser.2013.08.096
Jafari, Z., Ebrahimpour Azbari, M., & Akbari, M. (2021). “The Role of University and Industry Relationship in Improving Factors Affecting on Sustainable Performance of SMEs”. Science and Technology Policy Letters, 11(2), 17-34. [In persian] https://dor.isc.ac/dor/20.1001.1.24767220.1400.11.1.6.4.
Jayashree, S., Hassan Reza, M. N., Malarvizhi, C. A. N., Maheswari, H., Hosseini, Z., & Kasim, A. (2021). “The impact of technological innovation on industry 4.0 implementation and sustainability: an empirical study on Malaysian small and medium sized enterprises”. Sustainability, 13(18), 10115. https://doi.org/10.3390/su131810115
Karaşan, A., Gündoğdu, F. K., Işık, G., Kaya, İ., & İlbahar, E. (2024). “Assessment of governmental strategies for sustainable environment regarding greenhouse gas emission reduction under uncertainty”. Journal of environmental management, 349, 119577.   https://doi.org/10.1016/j.jenvman.2023.119577
Mancini, L., Vidal Legaz, B., Vizzarri, M., Wittmer, D., Grassi, G., & Pennington, D. (2019). “Mapping the role of raw materials in sustainable development goals”. A Preliminary Analysis of Links, Monitoring Indicators, and Related Policy Initiatives, 3, 1-9.
Mohammed, I. A. (2014). “An exploratory study on the application of Internet of Things and monitoring systems in the automobile industry”. International Journal of Creative Research Thoughts (IJCRT), 2 (1), 148-151.
Morovati Sharifabadi, A., Ziaeian, M., Mirfakhradini, S. H., & Zanjirchi, S. M. (2024). “Toward Industry 4.0 in home appliance industry: challenges and future perspectives”. Journal of Advances in Management Research. 21 (3), 354-375. https://doi.org/10.1108/JAMR-03-2023-0070
Mu, X., & Antwi-Afari, M. F. (2024). “The applications of Internet of Things (IoT) in industrial management: a science mapping review”. International Journal of Production Research, 62(5), 1928-1952. https://doi.org/10.1080/00207543.2023.2290229
Nawaser, K., Hakkak, M., Aeiny, M. A., Vafaei-Zadeh, A., & Hanifah, H. (2023). “The effect of green innovation on sustainable performance in SMEs: the mediating role of strategic learning”. International Journal of Productivity and Quality Management, 39(4), 490-511. https://doi.org/10.1504/IJPQM.2023.132828
Nižetić, S., Šolić, P., Gonzalez-De, D. L.-d.-I., & Patrono, L. (2020). “Internet of Things (IoT): Opportunities, issues and challenges towards a smart and sustainable future”. Journal of Cleaner Production, 274, 122877. https://doi.org/10.1016/j.jclepro.2020.122877
Pamula, A. S., Ravilla, A., & Madiraju, S. V. H. (2022). “Applications of the internet of things (IoT) in real-time monitoring of contaminants in the air, water, and soil”. Engineering Proceedings, 27(1), 26. https://doi.org/10.3390/ecsa-9-13335
Petrudi, S. H. H., Ghomi, H., & Mazaheriasad, M. (2022). “An Integrated Fuzzy Delphi and Best Worst Method (BWM) for performance measurement in higher education”. Decision Analytics Journal, 4, 100121.    https://doi.org/10.1016/j.dajour.2022.100121
Rajendran, S., & Gambatese, J. A. (2009). “Development and initial validation of sustainable construction safety and health rating system”. Journal of Construction Engineering and Management, 135(10), 1067-1075. https://doi.org/10.1061/(ASCE)0733-9364(2009)135:(1067)
Reda, H., & Dvivedi, A. (2022). “Decision-making on the selection of lean tools using fuzzy QFD and FMEA approach in the manufacturing industry”. Expert Systems with Applications, 192, 116416. https://doi.org/10.1016/j.eswa.2021.116416
Shahzad, M. A., Jianguo, D., & Junaid, M. (2023). “Impact of green HRM practices on sustainable performance: mediating role of green innovation, green culture, and green employees’ behavior”. Environmental Science and Pollution Research,, (38) 30, 88524-88547.    https://doi.org/10.1007/s11356-023-28498-6
Sohrabi, R., Pouri, K., Sabk Ara, M., Davoodi, S. M., Afzoon, E., & Pourghader Chobar, A. (2021). “Applying sustainable development to economic challenges of small and medium enterprises after implementation of targeted subsidies in Iran”. Mathematical Problems in Engineering, 2021(1), 2270983. https://doi.org/10.1155/2021/2270983
Suciu, A.-D., Tudor, A. I. M., Chițu, I. B., Dovleac, L., & Brătucu, G. (2021). “IoT technologies as instruments for SMEs’ innovation and sustainable growth”. Sustainability, 13(11), 6357. https://doi.org/10.3390/su13116357
Tajpour, M., Hosseini, E., Ratten, V., Bahman-Zangi, B., & Soleymanian, S. M. (2023). “The role of entrepreneurial thinking mediated by social media on the sustainability of small and medium-sized enterprises in Iran”. Sustainability, 15(5), 4518. https://doi.org/10.3390/su15054518
Turcu, C., Turcu, C., & Gaitan, V. (2018). “An Internet of Things oriented approach for water utility monitoring and control”. Advances in Computer Science. arXiv preprint arXiv:1811.12807.   https://doi.org/10.3390/su15054518
Verma, G., & Prakash, S. (2020). “A comparative study based on different energy saving mechanisms based on green internet of things (GIoT)”. Paper presented at the 2020 8th International Conference on Reliability, Infocom Technologies and Optimization (Trends and Future Directions) (ICRITO). https://doi.org/10.1109/ICRITO48877.2020.9197848
Vermesan, O., & Friess, P. (2014). “Internet of things applications-from research and innovation to market deployment”: Oxford: Taylor & Francis.
Yadegaridehkordi, E., Foroughi, B., Iranmanesh, M., Nilashi, M., & Ghobakhloo, M. (2023). “Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia”. Sustainable Production and Consumption, 35, 129-140. https://doi.org/10.1016/j.spc.2022.10.026
Zohrabi, A., Karimi, J., & Mohebi, A. (2020). “Explaining the Applications of Internet of things in Iran's Sports Industry: A Sustainable Development Approach”. Communication Management in Sport Media, 7(3), 91-98. [In persian]     https://dor.isc.ac/dor/20.1001.1.23455578.1399.7.3.8.4.