Internet of Things as a Strategic Enabler of Business Transformation Through Organizational Change and Supply Chain Perspectives

Abstract

The Internet of Things (IoT) is a central pillar of digital transformation. However, many organizations still struggle to transform technological investments into strategic business benefits. This chapter tackles this issue by investigating IoT as a strategic facilitator from the perspective of organizational change and supply chain management. Based on the resource-based view, dynamic capabilities perspective, and socio-technical systems perspective, this chapter argues that IoT creates value indirectly. Furthermore, IoT serves as a dual transformation mechanism by building internal organizational agility through the enterprise's ability to sense and seize context. A dual transformation model is proposed to represent this mediating process through organizational and supply chain transformation capabilities that lead to superior business performance. The model reinforces the critical linkages between internal organizational transformation and external network performance and ultimately illustrates a strategic pathway to realizing business performance through IoT.