The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective

Abstract The goal of this study is to look at how the convergence of IoT and XAI (IoT-XAI) effects the explanation, prediction, and decision-making on customer perceived value (CPV) in SMEs, utilising CPV and IoT-XAI convergence theories. This study also investigates how customer-IoT interaction inf...

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Main Author: Kwabena Abrokwah-Larbi
Format: Article
Language:English
Published: Springer 2025-01-01
Series:Discover Internet of Things
Subjects:
Online Access:https://doi.org/10.1007/s43926-025-00092-x
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author Kwabena Abrokwah-Larbi
author_facet Kwabena Abrokwah-Larbi
author_sort Kwabena Abrokwah-Larbi
collection DOAJ
description Abstract The goal of this study is to look at how the convergence of IoT and XAI (IoT-XAI) effects the explanation, prediction, and decision-making on customer perceived value (CPV) in SMEs, utilising CPV and IoT-XAI convergence theories. This study also investigates how customer-IoT interaction influences deep learning (DL) model prediction of CPV, as well as XAI explanation and decision making on CPV prediction. The literature on customer-IoT interaction, IoT physical objects, IoT data analysis, deep learning model, XAI, and CPV was reviewed to develop a theoretical framework for investigating the relationships between IoT and XAI convergence, and CPV prediction, explanation, and decision-making towards personalised marketing. The theoretical framework and research propositions are depicted in Fig. 1. Drawing on the theoretical framework used in this study, eight key research propositions were developed on the relationship between customers, IoT, DL, XAI, and CPV explanation and decision. According to the created theoretical framework and research propositions, customer-IoT interaction generates CPV data, which is then converted into structured CPV data by IoT analytics and fed into DL models for prediction. As a result, XAI models produce explanations and decisions based on DL-enabled CPV prediction, which guides personalise marketing. This paper explains how SMEs may leverage the convergence capabilities of IoT and XAI to generate CPV explanations and decisions to modify their personalize marketing methods.
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spelling doaj-art-2573e60e8ae943bcb114501120422aef2025-01-12T12:36:00ZengSpringerDiscover Internet of Things2730-72392025-01-015112510.1007/s43926-025-00092-xThe role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspectiveKwabena Abrokwah-Larbi0Department of Marketing, Logistics and Sports Management, Namibia University of Science and TechnologyAbstract The goal of this study is to look at how the convergence of IoT and XAI (IoT-XAI) effects the explanation, prediction, and decision-making on customer perceived value (CPV) in SMEs, utilising CPV and IoT-XAI convergence theories. This study also investigates how customer-IoT interaction influences deep learning (DL) model prediction of CPV, as well as XAI explanation and decision making on CPV prediction. The literature on customer-IoT interaction, IoT physical objects, IoT data analysis, deep learning model, XAI, and CPV was reviewed to develop a theoretical framework for investigating the relationships between IoT and XAI convergence, and CPV prediction, explanation, and decision-making towards personalised marketing. The theoretical framework and research propositions are depicted in Fig. 1. Drawing on the theoretical framework used in this study, eight key research propositions were developed on the relationship between customers, IoT, DL, XAI, and CPV explanation and decision. According to the created theoretical framework and research propositions, customer-IoT interaction generates CPV data, which is then converted into structured CPV data by IoT analytics and fed into DL models for prediction. As a result, XAI models produce explanations and decisions based on DL-enabled CPV prediction, which guides personalise marketing. This paper explains how SMEs may leverage the convergence capabilities of IoT and XAI to generate CPV explanations and decisions to modify their personalize marketing methods.https://doi.org/10.1007/s43926-025-00092-xCustomer perceived valueIoT-XAI convergenceInternet of thingsExplainable artificial intelligenceDeep learningCustomers
spellingShingle Kwabena Abrokwah-Larbi
The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
Discover Internet of Things
Customer perceived value
IoT-XAI convergence
Internet of things
Explainable artificial intelligence
Deep learning
Customers
title The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
title_full The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
title_fullStr The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
title_full_unstemmed The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
title_short The role of IoT and XAI convergence in the prediction, explanation, and decision of customer perceived value (CPV) in SMEs: a theoretical framework and research proposition perspective
title_sort role of iot and xai convergence in the prediction explanation and decision of customer perceived value cpv in smes a theoretical framework and research proposition perspective
topic Customer perceived value
IoT-XAI convergence
Internet of things
Explainable artificial intelligence
Deep learning
Customers
url https://doi.org/10.1007/s43926-025-00092-x
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AT kwabenaabrokwahlarbi roleofiotandxaiconvergenceinthepredictionexplanationanddecisionofcustomerperceivedvaluecpvinsmesatheoreticalframeworkandresearchpropositionperspective