The Impact of Internet of Things (IoT) on Operational Efficiency of Commercial Banks: Perceived Usefulness and Ease of Use as Mediators

The advent of the Internet of Things (IoT) has sparked a technological revolution that is profoundly impacting numerous sectors, including banking. Despite this, there is limited studies on its application in commercial banks in Nigeria. This research is among the few to examine the impact of IoT adoption and its challenges on business operational efficiency, with perceived usefulness and perceived ease of use of IoT as mediating factors. This study draws on the Technology Acceptance Model (TAM) and integrates challenges of IoT adoption into the TAM to examine the impact of IoT adoption on business operational efficiency. This paper utilised a purposive sampling method and collected 181 data from bank employees in Nigeria. The data was statistically analysed using Jamov/R Studio with the Lavaan package to test the hypotheses. The findings revealed a positive and significant relationship between perceived usefulness and IoT adoption, perceived ease of use and IoT adoption, and IoT adoption and operational efficiency, but showed an insignificant relationship between the challenges encountered and operational efficiency. The study concludes that the adoption of IoT has a significant impact on the operational efficiency in the banking sector. This study contributes to existing literature by offering a nuanced understanding of how IoT can catalyse operational efficiency within the commercial banking sector. The findings highlight the dual-pathway mediation of perceived usefulness and perceived ease of use of IoT adoption and efficiency hierarchy as its central theoretical contributions.