Exploring colliding logics of supply chains and business ecosystems in purchasing and supply management

PurposeA shift in supply management is underway. Nonlinear connections of buyers and sellers in business ecosystems challenge conventional supply management practice. Digital technologies and network connectivity lower the costs of connecting and collaborating with loosely related external parties. This paper aims to explore how this challenges conventional purchasing and supply management (PSM) practice. Design/methodology/approachThis paper builds on the extended case research method. It is based on a theoretical conceptualization, which is explored through a case study. FindingsThe authors find that both supply management's contribution to value creation, value appropriation and collaborative interfaces change with the emergence of multifaceted business systems. Research limitations/implicationsThe paper is developed within a specific industrial context, and the findings are not directly transferrable to other contexts. However, the authors believe that on an analytical level, there is value in transferring the insights into other manufacturing contexts. Practical implicationsManagers must challenge the taken-for-granted thinking that follows from linear supply management practices and start rehearsing the role of PSM when dealing with supplies from business ecosystem lead firms. Originality/valueThis research takes up a novel issue, highly relevant for PSM practitioners as well as for theory. To the best of the authors' knowledge, nothing has been written about the colliding business logics of conventional PSM and that of business ecosystems.

Automated summary

This paper explores how the emergence of digital technologies and network connectivity challenges conventional purchasing and supply management practices. The authors find that the contribution of supply management to value creation, value appropriation, and collaborative interfaces change with the emergence of multifaceted business systems. Managers need to challenge traditional linear supply management practices when dealing with supplies from business ecosystem lead firms.