Unveiling Industrial Internet of Things potential for sustainable manufacturing: a Triple Bottom Line approach

The Internet of Things (IoT) technology is revolutionising the sharing of information and significantly impacting companies’ strategies. The IoT market value is projected to grow from $714.48 billion in 2024 to $4062.34 billion in 2032, with diverse applications in B2B and B2C markets, particularly in Industrial IoT (IIoT). Specifically, Industrial IoT technologies are crucial for the transition to Industry 4.0 by creating a globally connected platform of smart devices that can enhance resource efficiency and collaboration, positively impacting companies’ economic, environmental, and social sustainability (Triple Bottom Line). Thus, this study aims to assess whether IoT technology adoption in the factory context impacts company performance, considering the sustainability sphere in a Triple Bottom Line (TBL) approach. To achieve this objective, the research employs a survey methodology administered to Italian manufacturing companies. Data were analysed using ANOVA and Binary Logistic Regression to validate the correlation between TBL variables and the value generated by IIoT projects. Findings show that company size does not directly impact the potential benefits arising from IIoT projects. The statistical tests indicate that, in the correlation between company size - measured by revenue and number of employees - and economic and social benefits, the p-value is higher than 0.05. Moreover, the TBL variables positively correlate with the value generated by IIoT project deployment, particularly in the environmental and social components. Indeed, the binary logistic regression analysis reveals that a 1-point increase in environmental performance has a 51% greater impact on value (4.87 vs 3.21) than the same increase in economic performance, supporting the importance of TBL performance in project implementation. This research fills a gap in the literature by assessing the impact of IoT on a company’s economic, environmental, and social sustainability using the Triple Bottom Line (TBL) approach. It encourages managers to incorporate environmental and social value drivers and adopt sustainability-focused performance indicators when implementing IoT projects.