An empirical investigation into the enhancement of decision-making capabilities in corporate sustainability leadership through Internet of Things (IoT) integration

Abstract

This research investigates the impact of Internet of Things (IoT) applications on decision-making capacity (DMC) development in Corporate Sustainable Leadership (CSL). The research focuses on how IoT enhances Environmental, Social, and Governance (ESG) practices within organizations, addressing key sustainability challenges and supporting Sustainable Development Goals (SDGs). Through quantitative and qualitative analyses, the study identifies three primary findings: (1) IoT applications directly enhance power source management in the environmental domain, improving Business Strategy and Long-term Growth (BSLG) and Measurement and Reporting (M&R) capabilities. This is achieved through real-time monitoring, smart building management, and predictive maintenance. In the social sphere, IoT strengthens supply chain transparency, bolstering Stakeholder Management (SM) through real-time tracking and blockchain-integrated systems for product authenticity verification. IoT comprehensively empowers performing risk management in the governance realm, improving Organizational Culture (OC) through early warning systems and predictive analytics for risk mitigation. (2) IoT integration facilitates Data-Driven Decision Making (DDDM), Real-Time Responsiveness (RTR), and Business Risk Management (BRM), key components of IoT-DMC. Furthermore, it supports the development of Effective Stakeholder Management (ESM), Resource Efficiency (RE), and Sustainable Competitive Outcomes (SCO) within IoT-CSL. (3) While highlighting the potential of IoT in advancing CSL, the research also acknowledges challenges such as initial investment costs, data privacy concerns, technological complexity, energy consumption of IoT devices, and electronic waste management. The study concludes that successful IoT implementation in CSL requires careful planning, robust data management, and a holistic approach considering both benefits and potential drawbacks.