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Metropolitan Journal of Academic Multidisciplinary Research

Adoption Of Artificial Intelligence And Internet Of Things For Sustainable Profitability In Nigeria’s Automobile Sector

Authors: Stephen Bamidele Ogodo1,Olalekan Asikhia2,Abimbola Eunice Adegbola3

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 2

Published: 01 Jan 1970


Abstract

A recent study in Nigeria's automobile sector, particularly in the Southwest region, has highlighted the growing importance of adopting eco-friendly practices and innovative technologies to drive sustainability and profitability. The research focused on the impact of Industrial Digitalization 4.0 technologies, specifically Artificial Intelligence and IoT, on the organizational performance of 29 selected automobile firms in Lagos, Ogun, and Oyo states. Employing a mixed-methods research design, the study utilized structured questionnaires to collect data from key decision-makers and managers. A total of 224 questionnaires were administered, with 224 valid responses analyzed using descriptive statistics and multiple regression models to test the hypothesized relationships. The study's findings revealed that both Artificial Intelligence and IoT have statistically significant positive effects on sustainable profitability. These technologies were found to enhance operational efficiency, reduce waste, improve environmental monitoring, and inform decision-making processes. The study concludes that embracing Industrial Digitalization 4.0 technologies is crucial for achieving both environmental sustainability and improved organizational performance in Nigeria's automobile sector. Based on these findings, the study recommends that automobile firms in Nigeria invest in emerging technologies such as AI-driven optimization tools and IoT-based monitoring systems. Additionally, the study emphasizes the need for government support in the form of infrastructure development, regulatory frameworks, and fiscal incentives to accelerate technological adoption and enhance the industry's global competitiveness. Overall, this research contributes to our understanding of the role of digital transformation in driving sustainability and profitability in developing economies and provides practical insights for businesses and policymakers seeking to promote eco-friendly practices and innovation in Nigeria's automobile sector.
Keywords

Artificial Intelligence (AI), IoT-Enabled, Sustainable Profitability, Environmental Sustainability, Automobile Industry (Nigeria)

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