Technological and geopolitical disruptions shaping processes and organization design: implications for purchasing and supply management

Purpose New emerging technologies, such as generative artificial intelligence (AI), and changing geopolitical realities provoke the question of whether operations and supply chain management (OSCM) processes, as well as the way they are organized, need to change. Taking the exemplary context of purchasing and supply management (PSM), what might have traditionally been effective and efficient ways to manage and organize PSM processes might be less so in times of AI utilization and autonomous buying and the current geopolitical situation. Design/methodology/approach This is a perspectives paper. We take a conceptual approach and build on research on PSM processes, the contingency approach to purchasing and supply organizations (PSOs), information processing theory (IPT), organizational buying behavior (OBB) and complement this with illustrative business examples. Findings The findings highlight a variety of impacts that technological and geopolitical disruptions have on PSM processes and organization. Technological advances may facilitate increased automation and analytical capability, eliminate biases and facilitate pooling of more information and, in general, higher information processing capacity for decision-making, but they also increase the complexity of managing supply chains. Geopolitical tensions, on the other hand, increase, for example, the need to manage various and changing tariffs and trade policies, increasing both uncertainty and complexity. Moreover, the empirical illustrations highlight that the effects of geopolitical disruptions on organizational structures seem more immediate than the effects of technological disruptions. Research limitations/implications This perspectives paper seeks to spark future PSM research. Beyond that, the five future research avenues are meant to inspire future research in other functions such as operations, logistics, supply chain management, IT, R&D and marketing. Practical implications The findings underline the strategic importance of PSM for handling an increasingly complex and uncertain business environment by addressing the why, what and how of such a transformation: First, identifying strategic value and strengthening cross-functional collaboration. Second, identifying top AI use cases and adjusting PSM processes and organization accordingly. Third, investing in (digital) transformation capacity and skills (e.g. COEs) contingent upon initial purchasing maturity. Fundamental process redesigns might be required in light of new technologies and geopolitical disruptions, which would then imply the need for (micro-level) PSO redesign, such as defining new job profiles (specialization), as well as adapted cross-functional collaboration patterns (participation) and standard operating procedures (standardization). Social implications The ongoing high-pace developments in technologies as well as major changes in geopolitical realities create new challenges for both on-the-job training and higher education. This perspectives paper highlights five areas for research, education, and practice for the exemplary function of PSM to help researchers, educators, students and practitioners cope with these challenges and to develop competences and solutions for the future. Originality/value This perspectives paper highlights the importance of a conversation on the impact of technological and geopolitical changes for the management of PSM processes and organizational considerations. It moreover highlights the future research opportunities on the potential interaction of technological and geopolitical disruptions.