Leveraging digital data spaces in purchasing and supply management: Paving the way to the circular economy exemplified by Catena-X

The transition to a circular economy (CE) is increasing the complexity of data processing for purchasing and supply management (PSM), necessitating the adoption of digital technologies. In particular, digital data spaces (DDSs) have gained prominence for facilitating data sharing and collection and allowing secure data exchange. This study explores the information processing capabilities critical for PSM when using DDSs. Using a single case study research design, the study focuses on the DDS Catena-X. Through 20 semi-structured interviews with experts from 12 participating companies, the research explores organizational information processing theory as a theoretical foundation. The results show that DDSs support PSM within the CE by connecting the various actors and through extensive data exchange along the value chain. In addition, the findings identify two critical sets of information capabilities necessary for the effective use of DDSs in PSM: inter-organizational process capabilities and inter-organizational IT-based capabilities. This study contributes to theoretical knowledge within the supply chain management domain by 1) exploring how DDSs benefit the informational capabilities of PSM in CE, 2) investigating the inter-organizational capabilities PSM needs to fully leverage DDSs while 3) introducing the OIPT to the field of circular PSM utilizing DDSs.