Orchestrating ecosystem and organizational transformation for digital servitization : A dynamic capabilities perspective on the evolving strategic role of procurement

Abstract: Purpose - The purpose of the thesis is to attend to apparent knowledge gaps in digital servitization andecosystem orchestration literature concerning: (1) understanding of the internal role distribution when orchestrating ecosystems in digital servitization; (2) need for increased knowledge on the capabilities required for ecosystem orchestration. To fulfill this purpose, the following objective was derived: how procurement can develop dynamic capabilities to orchestrate ecosystem-organization collaboration in digital servitization. Method - This thesis is built on a qualitative methodology using an inductive approach. Utilizing multi-actorperspectives on a single case study on a leading global manufacturing firm within the vehicle and transport industry. The studied procurement function within the case firm is currently in an early phase of building ecosystem collaborations to support the firm's overall digitalization and servitization journey. More than 40 interviews were conducted spanning across: various roles within the procurement function, various roles across other functions within the case firm tied to the procurement function, as well as other external actor's viewpoints. The interviews were analyzed through a thematic analysis approach. Findings - By building on the well-established dynamic capabilities perspective as a theoretical lens, the findings of this thesis reveal nine sets of capabilities within the respective clusters sensing, seizing, and reconfiguring. In addition, four groups of underlying preconditions, referred to as enablers, were identified. We combine these insights into a framework underscoring the need for both capability development but also supporting enablers for successful development and utilization of said capabilities. The framework thus summarizes our key findings whilst illustrating interdependencies between the identified capabilities and enablers, showcasing that procurement must both develop routines and leverage the enablers, to successfully transition into a role in which they orchestrate ecosystem-organization collaboration. Implications - Through empirically explicating key capabilities, enablers and their interdependence, our thesis provides broad implications for management and strategy research relating to dynamic capabilities for orchestrating ecosystems in digital servitization. Furthermore, we also contribute to the scarce literature on procurement tied to these research streams. Additionally, our findings carry implications for procurement managers guiding them in how to strategically adjust to the continuously transformative industry landscape shaped by the trends digitalization, servitization and their interplay. This through rethinking the role of procurement as an orchestrator for innovation and value co-creation within the organization as well asassociated ecosystems, as well as paving the path for transitioning into such a role. Limitations and future research - This thesis is generally bound to a single case study within a set industry segment, at an early phase of rethinking procurement and ecosystem collaborations. Further research is suggested to validate our findings through larger datasets, other study methodologies and expand into other contexts. For instance, focusing on cross-industry comparisons or analyzing procurement's role and capability needs depending on the different stages of ecosystem evolution. To drive a truly dynamic firm, we further suggest investigating what role different internal functions (e.g., sales, engineering, IT) with benefit can undertake in the ecosystem depending on varying ecosystem actors, structure and maturity.