Transaction cost theory, organisational ambidexterity, and digital platforms: an interpretative case study exploring the implementation of a business-to-business logistics digital platform in a South African organisation

Abstract

Logistics costs represent a significant burden within South Africa's consumer packaged goods (CPG) manufacturing and retail supply chains. Amidst intensifying market competition and the pressing need for cost reduction, businesses are turning to digital platforms as a solution to optimise logistics efficiency while considering environmental sustainability. Despite the increasing interest in Business-to-Business (B2B) logistics digital platforms, limited case studies exist that explore their early-stage implementation, particularly in emerging markets. This paper examines the implementation of a B2B logistics digital platform within a South African CPG company, using Transaction Cost Theory (TCT) and Organisational Ambidexterity as theoretical lenses. Through semi-structured interviews and an interpretative case study approach, this study investigates how the platform has enabled cost reductions and enhanced operational efficiencies. The findings reveal that the successful implementation of such platforms depends on a sustainable commercial model underpinned by reliability, trust, and transparency. The study also highlights the critical role of organisational ambidexterity in navigating the challenges posed by digital platform implementation in emerging markets.