Market-Driving Strategy Implementation Through Global Supplier Relationships

Elg U, Deligonul S Z, Ghauri P N, et al. Market-Driving Strategy Implementation Through Global Supplier Relationships [J]. Industrial Marketing Management, 2012, 41(6): 919-928

Posted: 30 Sep 2016

See all articles by Ulf Elg

Ulf Elg

Lund University - School of Economics and Management

Seyda Deligonul

St. John Fisher College

Pervez Ghauri

King's College, London; University of Birmingham

Wade M. Danis

Georgia State University - J. Mack Robinson College of Business

Veronika Tarnovskaya

Lund University - School of Economics and Management

Date Written: 2012

Abstract

The global supplier network is becoming an increasingly important asset for many firms. If successfully managed, supplier relationships may support the firm's strategic orientation and become a sustainable advantage on the global market. A key question is thus how the firm can develop and maintain such relationships. The market-driving strategy has recently been advanced as a more pro-active type of market orientation that aims to reconfigure the supply chain, change the nature of competition and the values of the customers. We especially investigate how market-driving firms can develop their supplier relationships so that they actively support this strategy. We present a set of propositions that specify factors critical for the development of the market-driving firm's supplier relationships and develop a theoretical framework that specifies how these different factors interact in order to strengthen the market-driving orientation of a supplier relationship. The results are generated from an in-depth case study of IKEA's corporate supplier strategy and of supplier relationships in the Russian and Polish markets.

Keywords: Market driving, Supplier relationships, Competitive advantage, Global strategy

JEL Classification: Q21

Suggested Citation

Elg, Ulf and Deligonul, Seyda and Ghauri, Pervez and Danis, Wade M. and Tarnovskaya, Veronika, Market-Driving Strategy Implementation Through Global Supplier Relationships (2012). Elg U, Deligonul S Z, Ghauri P N, et al. Market-Driving Strategy Implementation Through Global Supplier Relationships [J]. Industrial Marketing Management, 2012, 41(6): 919-928. Available at SSRN: https://ssrn.com/abstract=2844531

Ulf Elg

Lund University - School of Economics and Management ( email )

Tycho Brahes väg 1,
S-220 07 Lund, 223 63
Sweden

Seyda Deligonul

St. John Fisher College ( email )

Pervez Ghauri (Contact Author)

King's College, London ( email )

Strand
London, England WC2R 2LS
United Kingdom

University of Birmingham ( email )

Edgbaston, Birmingham B15 2TT
United Kingdom

Wade M. Danis

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States

Veronika Tarnovskaya

Lund University - School of Economics and Management ( email )

Tycho Brahes väg 1,
S-220 07 Lund, 223 63
Sweden

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