Wireless communication using existing coding models poses several challenges for RF signals due tomultipath scattering, rapid fluctuations in signal strength and path loss effect. Unlike existing works, thisstudy presents a novel coding technique based on Analogue Network Coding (ANC) in conjunction withSpace Time Block Coding (STBC), termed as Space Time Analogue Network Coding (STANC). STANCachieves the transmitting diversity (virtual MIMO) and supports big data networks under low transmittingpower conditions. Furthermore, this study evaluates the impact of relay location on smart devices networkperformance in increasing interfering and scattering environments. The performance of STANC is analyzedfor Internet of Things (IoT) applications in terms of Symbol Error Rate (SER) and the outage probabilitythat are calculated using analytical derivation of expression for Moment Generating Function (MGF).In addition, the ergodic capacity is analyzed using mean and second moment. These expressions enableeffective evaluation of the performance and capacity under different relay location scenario. Differentfading models are used to evaluate the effect of multipath scattering and strong signal reflection. Undersuch unfavourable environments, the performance of STANC outperforms the conventional methods suchas physical layer network coding (PNC) and ANC adopted for two way transmission.