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The purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).

The 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.

The 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.

The developed conceptual model must be verified and enhanced through further empirical research.

The conceptual model can be used by procurement leaders as a starting point and framework when strategizing about digitally transforming the procurement organization.

The 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.

To build a more comprehensive understanding of factors affecting the success of service contracting, the purpose of this paper is to investigate the influences of service complexity, contract structure and contracting process on the buyer-perceived supplier performance in business-to-business (B2B) services.

A research model is developed based on transaction cost economics and the research on service contracting. The model is tested by the survey data collected. Professional focus groups on LinkedIn are used to generate the list of potential respondents. The sample consists of 177 purchasing professionals from 25 countries.

The results indicate that three major contract dimensions and follow-up management practices positively influence buyer-perceived supplier performance. Furthermore, service complexity amplifies the effects of incentives designed in the contract and the buyer’s follow-up contract management on perceived supplier performance.

The sample consists of respondents from 25 countries and provides good geographic coverage. However, the results should be generalized with caution because not all countries were represented equally.

The study suggests a framework and guidelines for purchasing managers to improve the design and management of service contracts to secure good performance from their supplier.

This paper contributes to understanding the performance-enhancing aspects of designing and monitoring service contracts in B2B contexts. It also adds to the knowledge of the role of service complexity in successful B2B service purchasing.