## 5 The Conceptual Model for IoT Adoption in the MS
### Perceived Challenges
#### 5.2.1 Technological Challenges  
Security and privacy are the most significant challenges to IoT implementation [11; 16; 18; 27; 31; 34; 45; 103]. IoT implementation is based on a multi-layered architecture that spans from the base data perception layer to the top application layer [44]. The IoT combines a vast network that contains many devices, sectors, and parties; thus, all data created from these IoT devices and network layers must be protected against leakage, illegal usage, or privacy violation, which could hinder data reliability [19; 26; 49]. Furthermore, IoT systems are highly dynamic [104], and there is no standard IoT security protocol to date [17], which leads to the emergence of periodic new cyber-attacks [6; 38; 53]. Implementing the IoT in organizations may enhance these risks through improper access by hackers; thus, these possibilities may reduce the value of the IoT in the MS, which may be identified as a significant adoption challenge [66]. Studies in IT found that security and privacy concerns and perceived value were negatively associated [66]. Accordingly, the following hypothesis is suggested:  
**Hypothesis 3 (H3). **_Security and privacy concerns can have a negative impact on the IoT's perceived value._  
Compatibility  
Compatibility is defined as the new technology's ability to work with or integrate into existing systems and practices [18; 83]; thus, the IoT necessitates appropriateness with existing MS systems and other technological resources [16; 92]. In implementing the IoT, there are millions of interconnected devices that need to integrate with MS legacy systems [25; 26; 27]. Nonetheless, manufacturing legacy systems were developed as data silos with limited external connectivity and difficult to develop and update. Legacy systems are considered to be a strong inhibitor to new technology adoption in the MS [37; 92]. Furthermore, the MS encompasses different operating systems, limited infrastructure, and determining business practices, which lead to challenges when current information systems are used with new IoT devices and systems [8; 31; 43]. Previous studies found the compatibility construct as an important determinant in value perception and adoption decisions in organizations [21; 66]. The IoT compatibility challenges might require additional effort, increased facility downtime, and IT infrastructure expansion [17; 105], which may cause low-value perception [21; 66]; therefore, the fourth hypothesis is:  
**Hypothesis 4 (H4). **_Compatibility challenges can have a negative impact on the IoT's perceived value._  
Complexity is defined as the degree to which the technology is perceived as relatively difficult to utilize and understand [83]. According to [PERSON] [83], the more difficult technology is to use, the less likely it is to be adopted. The IoT is a complex technology that integrates various heterogeneous devices in a vast network [56; 106]. The MS is still hesitant to adopt the IoT due to its complexity of use, lack of internationally acceptable standardizations and protocols, and heterogeneity of connected things [9; 38; 102]. The absence of standard protocols renders inter-IoT device communication challenging and inadequate access to real-time data, thus decreasing the chances of its utilization [16; 25; 31]. The complexity was found to have a negative association with organizational IT adoption [21]. In the same vein, [PERSON] and [PERSON] [21] reported that complexity has a negative effect on perceived value in IT adoption in organizations; therefore, the H5 projected the following prediction:  
**Hypothesis 5 (H5). **_Complexity challenges can have a negative impact on the IoT's perceived value._  
Implementation cost is a crucial aspect that needs to be incurred in adopting new technology [84]. IoT technology requires large initial investment costs and indirect costs related to application development and maintenance costs, which are considered comparatively high [11; 17; 18; 36; 56; 64; 107].