A Review of IoT Smart Decision-Making Processes to Enhance Organizational Performance in the Manufacturing Industry

Authors

Siti Nur Maisarah Isnin

Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka (Malaysia)

Nurul Farhaini Razali

Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka (Malaysia)

Nor Azah Abdul Aziz

Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka (Malaysia)

Sitinor Wardatulaina Mohd Yusof

Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka (Malaysia)

Nur Syakirah Ahmad

Fakulti Keusahawanan dan Perniagaan, Universiti Malaysia Kelantan (Malaysia)

Kohila Malar Kalesamy

School of Technology, Asia Pacific University of Technology and Innovation (Malaysia)

Article Information

DOI: 10.47772/IJRISS.2026.100800066

Subject Category: Management

Volume/Issue: 10/8 | Page No: 908-923

Publication Timeline

Submitted: 2026-08-11

Accepted: 2026-08-17

Published: 2026-08-25

Abstract

In the era of Industry 4.0, the Internet of Things (IoT) has emerged as a transformative technology with the potential to enhance organizational performance in the manufacturing sector significantly. The primary aim of this paper is to review previous studies on how the manufacturing industry can improve its organizational performance by implementing IoT Smart Decision-Making Processes. Despite the numerous benefits associated with IoT, including real-time monitoring, predictive maintenance, and process automation, many firms face significant challenges such as high implementation costs, limited technical expertise, cybersecurity risks, and uncertain returns on investment. The paper addresses critical questions regarding which IoT Smart Decision-Making processes are instrumental in enhancing organizational performance, how these processes drive improvements in manufacturing outcomes, and what essential elements constitute an effective IoT Smart Decision-Making process in the manufacturing industry. By bridging the gap between the theoretical potential of IoT and its practical application in developing economies such as Malaysia, this paper proposes an IoT smart decision-making process for industry practitioners, informs policy formulation, and contributes to the academic discourse on smart manufacturing and Industry 4.0.

Keywords

Industry 4.0, Internet of Things (IoT), Manufacturing Industry, Organizational Performance

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