Abstract
Core supply chain design levers such as centralization, formalization, and standardization have historically been enacted through direct buyer-supplier interaction. Digital technologies in this context have largely been assumed to function as neutral supports for these governance structures by reducing geographic and informational distance without altering the underlying logic of coordination or control. However, we argue that digitalization can also generate new forms of separation by reshaping how interorganizational interaction is organized. We introduce the concept of digitally induced distance and distinguish three forms: buyer-access distance, time-compression distance, and capability distance. We theorize how these distances condition the effectiveness of centralization, formalization, and standardization in shaping coordination, scalability, and participation outcomes. By reframing digital technologies as sources of structural distance rather than purely coordination-enhancing tools, this paper contributes to research on organizational design and supply chain governance and explains why formally sound governance arrangements may yield uneven outcomes under digitalization.