Design of an IoT-Based Conceptual Model for Improving Materials Procurement Processes using Structural Equation Model Analysis

This study designs a conceptual Internet of Things (IoT)-based model to improve materials procurement in construction projects in Lagos State, Nigeria, using the Technology–Organization–Environment (TOE) framework. It examines how system integration, real-time monitoring, and infrastructure readiness influence procurement efficiency, decision support, and lead-time performance. A quantitative cross-sectional survey of 240 professionals from construction firms, procurement units, and government agencies was conducted. Data were analysed using Structural Equation Modeling (SEM) and regression. Model evaluation used absolute and parsimony fit indices, with explanatory power tests at construct and path levels.The IoT model achieved excellent absolute fit and acceptable parsimony, though incremental indices were weaker. SEM results show system integration strongly improves procurement efficiency, real-time monitoring supports decision-making indirectly, and weak infrastructure limits effectiveness. IoT also reduces variability in lead time. Regression results (R = .812; R² = .659; F p < .001) confirmed significant joint effects of efficiency and decision-support indicators, including lead-time stability, inventory accuracy, and user satisfaction.Firms should invest in interoperable systems, reliable infrastructure, and effective dashboards. Policymakers should establish standardized integration protocols and foster public–private partnerships.Unlike prior studies, this research develops and validates a context-specific model using SEM within the TOE framework, offering both academic and practical insights for IoT-enabled procurement in developing economies.