Reindeer herders in arctic supply ecosystems : searching for the harmony between value-creation and value-capture

Abstract

This study examines the relationship between value-creation and value-capture in supply chain management (SCM) practices in Arctic extreme environments. Of particular interest is how these practices have been continuously (re)shaped by the interactions between oil and gas businesses and Indigenous reindeer herders. A qualitative single-case study presents onshore supply chain operations in Arctic oil and gas field projects. Drawing on data from 18 interviews, personal observations, and archival materials, the study identifies how the development of new transportation routes can result in social contradictions and unforeseen consequences for Indigenous communities. The findings also suggest that the creation of supply ecosystems can contribute to value-creation and value-capture for oil and gas projects, e.g., the need for redundant capacities, and local communities, particularly through social responsibility practices in the response to extreme environments and business boundaries. Further, the findings disclose value as something unique to an ecosystem and the context in which it emerges and the actor for whom it emerges. Therefore, the process of value-creation in an ecosystem extends beyond the actors’ ordinary operational activities and daily routines. Ultimately, the study highlights the emergence of new forms of integration among actors in supply ecosystems and their potential for unexpected social outcomes, owing to the complex interplay of collective interdependencies of co-existence.