Abstract
Direct-to-consumer (D2C) entrepreneurial activity is disrupting both traditional retailers and manufacturers by directly linking consumers with products and services, disintermediating elements of the traditional value chain. We conducted in-depth interviews with 24 leaders of small to medium sized D2C businesses to advance theoretical understanding of how they choose among different supply chain strategies to enhance performance. Contrary to expectations, only a subset of D2C companies are willing to invest in differentiated supply chain capabilities in order to serve their customers better than traditional retailers and packaged goods manufacturers. Based on the qualitative analysis of our data, we also identify the common sequential path these innovative firms follow to define their business model and develop their supply chain strategy. Focused findings from our inductively derived supply chain capability framework can be used by D2C business leaders to create strategic advantage for their firms and be of interest to D2C scholars and venture investors since they offer insights into strategic choices for such firms.
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