Market driving multinationals and their global sourcing network

Abstract

PurposeThe 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/approachThis 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.FindingsFindings 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/valueMarket 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.