This research examines the mediating role of Internet of Things (IoT) adoption in the relationship between core capability (CC) and firm performance (FP) among small and medium-sized logistics enterprises (SMLEs) in China. Questionnaires were distributed to SMLEs in Shanghai, China, by a disproportionate simple stratified random sampling method, and 541 valid samples were collected. SPSS 25.0 was used to test the reliability and validity. Smart PLS 4.0 was used to analyze the structural equation model and the Bootstrap mediation analysis. The research found that core capabilities have a significant positive impact on firm performance, among which software and hardware capabilities have the strongest effect (β = 0.240, p < 0.001). Core capabilities have a significant positive driving effect on the IoT adoption (β range 0.174–0.274, p < 0.001). The IoT adoption significantly promotes firm performance improvement (β = 0.157, p < 0.01) and plays a partial mediating role between core capabilities and firm performance (mediate effect β range 0.027–0.043, 95% CI does not include zero). The path coefficient analysis shows a strong positive correlation, indicating that the adoption of IoT can significantly improve firm performance. The model has good explanatory power (firm performance R² = 0.278; IoT adoption R² = 0.215). These findings highlight the importance of IoT adoption to the core capability and firm performance, which not only enhances the core capability of firms but also improves the firm's performance. which have significance to administrators and policymakers of SMLEs. This research provided robust empirical evidence and actionable insights for advancing sustainable transformation in the logistics sector.
Liu et al. (Mon,) studied this question.