Dynamic capabilities for digital procurement transformation: a systematic literature review

PurposeThe purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).Design/methodology/approachThe authors contextualize theory about dynamic capabilities (DCs) to integrate the fragmented body of literature on procurement digitalization by means of a systematic literature review (SLR). By extracting and clustering capabilities, as well as proven performance outcomes from existing literature in the field, the authors develop a conceptual model of the DCs required for DPT.FindingsThe authors first introduce and define DPT and the corresponding motivations that trigger firms to invest in advanced digital technologies. Second, by adopting the DC lens, the authors provide an overview of nine microfoundations required for DPT and highlight the strategic options procurement leaders can use when strategizing about adopting combinations of digital technologies. Third, the authors present a future research agenda on DCs for DPT.Research limitations/implicationsThe developed conceptual model must be verified and enhanced through further empirical research.Practical implicationsThe conceptual model can be used by procurement leaders as a starting point and framework when strategizing about digitally transforming the procurement organization.Originality/valueThe study is the first to synthesize previous research findings on procurement digitalization through an SLR in order to develop a fine-grained conceptual model that supports practitioners and researchers alike in better understanding the capabilities required for and potential performance outcomes of DPT.