IoT-Driven Digital Transformation in Global Supply Chains: Implications for Financial Risk Monitoring and Investment Efficiency

Abstract

The increasing complexity of global supply chains has intensified the need for advanced digital monitoring systems capable of improving financial risk monitoring and investment efficiency. This study examined the influence of Internet of Things (IoT) technologies and digital monitoring infrastructures on financial risk monitoring effectiveness and investment performance within globally integrated supply chain environments. A quantitative research design was employed to investigate the relationships among IoT technology adoption, digital monitoring capability, operational visibility, financial risk monitoring effectiveness, and investment efficiency. Data were collected from 214 professionals working in supply chain management, logistics coordination, procurement operations, and financial risk management roles across multiple industries, including manufacturing, logistics, retail distribution, and international trading organizations. Descriptive and inferential statistical analyses were conducted using correlation analysis, multiple regression, and structural equation modeling to evaluate the proposed conceptual relationships. The descriptive findings indicated relatively high levels of digital technology adoption across participating organizations, with 46.3% of firms reporting high levels of IoT adoption, while 36.9% demonstrated moderate adoption levels. Correlation analysis revealed strong positive relationships among the main constructs, with the highest correlation observed between digital monitoring capability and operational visibility (r = 0.71). Regression results further demonstrated that IoT technology adoption significantly predicted digital monitoring capability (β = 0.61, p < 0.001), explaining 37% of the variance in monitoring capability across organizations. Digital monitoring capability also exerted a significant influence on financial risk monitoring effectiveness (β = 0.63, p < 0.001) and investment efficiency (β = 0.58, p < 0.001). Structural equation modeling confirmed that monitoring capability functioned as a mediating factor linking IoT adoption with improved financial outcomes. The structural model demonstrated satisfactory fit indicators, including CFI = 0.94, TLI = 0.92, and RMSEA = 0.056, confirming the adequacy of the proposed model. The findings indicated that organizations with stronger IoT-enabled monitoring infrastructures demonstrated greater operational transparency, improved financial risk detection, and more efficient allocation of supply chain investments. Industries characterized by complex logistics operations, particularly manufacturing and transportation sectors, exhibited the strongest benefits from digital monitoring systems. Overall, the study provided empirical evidence that integrated IoT-based monitoring technologies significantly enhance financial oversight and investment decision-making within global supply chain networks.