The impact of Internet of things implementation on firm performance

•Recently, the Internet of things (IoT) has become most popular topic in various industries.•Previous studies have only focused on background technologies of IoT and applications.•No studies have discussed the impact of IoT implementation on firm performance.•This study adopts three approaches to estimate the performance of IoT implementation. Recently, the Internet of things (IoT) has become most popular topic in various industries. For enterprises, IoT is not just the biggest buzz word but a developing trend, a proven strategy, and an innovative technology. Enterprises conducting IoT reach a turning point, but might also face diverse challenges related to technical or managerial aspects. Various challenges will be encountered, depending on different perspectives, i.e. the industry’s first movers or second movers. Therefore, the impact of implementing conducting IoT will also vary. Previous studies have only focused on background technologies of IoT and applications. Meanwhile, no studies have discussed the impact of IoT implementation on firm performance. This study attempts to fill this gap. From the internal perspective, we want to comprehend the view of managers or shareholders to explore performance after enterprises have adopted IoT. In order to measure such practices have positive impacts on enterprises’ financial performance, this study adopts three approaches to estimate the performance of IoT implementation vis-à-vis financial performance, productivity, and market value. We collected secondary data to perform a quantitative analysis with three dummy variables, including IoT adopters, first movers, and better performers. We hope to provide a complete reference to enterprises through different indicators, which will facilitate assessment of enterprises’ implementation of IoT and also provide a more in-depth understanding of the impact of IoT.