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Making sense of the impact of the internet of things on Purchasing and Supply Management: A tension perspective

: Legenvre, Hervé; Henke, Michael; Ruile, Herbert


Journal of purchasing and supply management 26 (2020), No.1, Art. 100596, 14 pp.
ISSN: 1478-4092
Journal Article
Fraunhofer IML ()
purchasing and supply management (PSM); Internet of Things (IoT); tensions

The Internet of Things (IoT) is transforming how industries operate. It impacts on firms’ supply networks, business processes and business models. This article describes how the IoT influences the Purchasing and Supply Management (PSM) function. Our findings based on interviews and workshop with more than 200 senior European purchasing managers from large corporations suggest that PSM has opportunities to support the development of IoT solutions within firms which are required to work with dynamic and complex markets. At the same time, the IoT supports the development of a more capable and efficient PSM organisation. As part of this early stage theory building effort, we outline scenarios for the future of the PSM function. This leads us to reflect on how PSM leaders manage IoT-related tensions by means of differentiation and integration tactics.