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Cited by 51Quality and Supply ManagementDigital Transformation in IndustryPublic Procurement and Policy

Structuring the phenomenon of procurement digitalisation: Contexts, interventions and mechanisms

Open access
Lorentz, Harri, Aminoff, Anna, Kaipia, Riikka, Srai, Jagjit Singh·2021·International Journal of Operations & Production Management
DOI 10.1108/ijopm-03-2020-0150
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Abstract

Purpose: The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables. Design/methodology/approach: The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach. Findings: Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation. Practical implications: The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation. Originality/value: A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.

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  • Internal complexity facilitates digitalization by enabling communication support and process structuring interventions.

    “The findings indicate that internal complexity facilitates digitalization by enabling communication support and process structuring interventions, while external dynamism drives interventions for information processing and decisionmaking, particularly related to supply market knowledge, strategic alignment, and supplier capability assessment.”

    From Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes (2023) · cites this paper as [47]

  • External dynamism drives interventions for information processing and decision-making, particularly related to supply market knowledge, strategic alignment, and supplier capability assessment.

    “The findings indicate that internal complexity facilitates digitalization by enabling communication support and process structuring interventions, while external dynamism drives interventions for information processing and decisionmaking, particularly related to supply market knowledge, strategic alignment, and supplier capability assessment.”

    From Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes (2023) · cites this paper as [47]

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Research works printed but not linked: 9

  1. [17]17. Donaldson, L. (2001), The Contingency Theory of Organizations, SAGE Publications, Inc., Thousand Oaks, CA.
  2. [27]27. Fung, H. (2014), Criteria, use cases and effects of information technology process automation (ITPA). <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2588999>
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  4. [33]33. Gray, J. and Prud'homme, A. (2019), "Tracking technology for your organization", Inside Supply Management, May, pp. 34-35.
  5. [48]48. Miles, M.B. and Huberman, A.M. (1994), Qualitative Data Analysis: An Expanded Sourcebook, SAGE.
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  7. [56]56. Rogers, E. M. (2010), Diffusion of Innovations. The Free Press, Simon and Schuster Inc., New York.
  8. [62]62. Simon, H.A. (2019), The Sciences of the Artificial, MIT press.
  9. [73]73. Thompson, J. D. (1967), Organizations in Action, McGraw-Hill. New York.

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Authors
Lorentz, H., Aminoff, A., Kaipia, R., & Srai, J. S.
Affiliations
  • University of Turku (FI)
  • Hanken School of Economics (FI)
  • Aalto University (FI)
  • University of Cambridge (GB)
ORCID
Venue
International Journal of Operations & Production Management
Publisher
Emerald
Published
2021-01-13
Volume
41
Issue
2
Pages
157-192
ISSN
0144-3577 (ISSN-L)
DOI
10.1108/ijopm-03-2020-0150
OpenAlex
W3119894063
Cited by
51
References
79
Citations by year
2026: 5 · 2025: 9 · 2024: 9 · 2023: 14 · 2022: 9 · 2021: 5
FWCI
9.14
Type
journal article
Language
en
Open access
Licence
Locations
  • International Journal of Operations & Production Management (publishedVersion)
  • Apollo (University of Cambridge) (submittedVersion, public-domain)
  • Työväentutkimus Vuosikirja (submittedVersion, other-oa)
  • Apollo
Funders
Biotechnology and Biological Sciences Research Council (BB/P027970/1)
Topics
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Quality and Supply Management
  • Physical Sciences › Engineering › Industrial and Manufacturing Engineering › Digital Transformation in Industry
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Public Procurement and Policy
Keywords
technology-based interventions, internal complexity, decision aiding, information processing, strategic alignment, process improvement

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