Digitalisation as a Catalyst for Supplier Diversity, Equity and Inclusion

Purpose:
This article investigates digital technologies’ potential to enable supplier diversity, equity and inclusion (SDEI) outcomes by improving procurement processes.

Design/Methodology/Approach:
An in-depth qualitative case study approach was used to analyse a global energy organisation (Energy-Co) and two of its technology service providers (TSPs), which form two dyads embedded in one case. Thirty-nine interviews were conducted, and internal secondary data was also examined. Line-by-line inductive coding was employed to extract 873 participant insights, leading to first-order codes and six second-order themes.

Findings:
AI and big data analytics technologies improve SDEI outcomes by transforming procurement processes and organisational subsystems. We identified six digitally enabled process changes spanning DEI-supplier prioritisation, identification, standardisation, onboarding and engagement, development and performance tracking. Using socio-technical systems (STS) theory, we also found that digitalisation functions as a system-level integrator, helping to resolve misalignments across technical, social and environmental subsystems and enabling more scalable, coherent and long-term SDEI procurement outcomes.

Originality:
This paper theorises that digitalisation enables the systemic embedding of SDEI in procurement. It adopts a distinctive dyadic lens by foregrounding the role of TSPs as active co-creators of inclusive procurement infrastructures. The paper identifies six new digitally enabled procurement process improvements; also, by extending STS theory, it introduces subsystem boundary blurring to explain how digitalisation enables SDEI outcomes regarding both volume and value. By offering a systemic lens for exploring DEI transformations across procurement ecosystems, this paper lays the foundation for a research agenda at the intersection of digitalisation, STS theory and inclusive procurement.