Market Driving Multinationals and Their Global Sourcing Network

Ghauri P. N., Tarnovskaya V, Elg U., Market Driving Multinationals and Their Global Sourcing Network [J]. International Marketing Review, 2008, 25(5): 504-519

Posted: 1 Oct 2016

See all articles by Pervez Ghauri

Pervez Ghauri

King's College, London; University of Birmingham

Veronika Tarnovskaya

Lund University - School of Economics and Management

Ulf Elg

Lund University - School of Economics and Management

Date Written: 2008

Abstract

Purpose – The purpose of this paper is to explore how a global supplier network can support and contribute to a market driving strategy. Theoretically, the paper contributes by integrating the market driving strategy and the network approach. IKEA is considered one of the leading market driving firms. The paper studies its activities in establishing supplier networks in Russia and Poland.

Design/methodology/approach – This is an exploratory study of four suppliers of IKEA in Poland and Russia. Data are collected through 11 in-depth interviews with IKEA’s corporate and middle level managers and with managers and technicians from its suppliers in Russia and Poland. Results are drawn through matrix coding techniques and pattern matching. Findings – Findings confirm IKEA’s market driving strategy and how it has been able to restructure the market and successfully develop an efficient supplier network as a part of its market driving strategy.

Originality/value – Market driving approach has been suggested as a more pro-active form of market orientation. It is characterised by an ability of the firm to shape the market conditions, to influence customers and offer completely new value propositions through its unique business process.

Keywords: Sourcing, Marketing strategy, Multinational companies, Suppliers, Russia, Poland

JEL Classification: F23, M31

Suggested Citation

Ghauri, Pervez and Tarnovskaya, Veronika and Elg, Ulf, Market Driving Multinationals and Their Global Sourcing Network (2008). Ghauri P. N., Tarnovskaya V, Elg U., Market Driving Multinationals and Their Global Sourcing Network [J]. International Marketing Review, 2008, 25(5): 504-519. Available at SSRN: https://ssrn.com/abstract=2844558

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

Veronika Tarnovskaya

Lund University - School of Economics and Management ( email )

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

Ulf Elg

Lund University - School of Economics and Management ( email )

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

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