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
Date Written: 2012
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: Suggested Citation