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An interaction approach to global sourcing: A case study of IKEA

Author

Listed:
  • Jens Hultman

    (Skane University Hospital [Lund])

  • Thomas Johnsen

    (Audencia Recherche - Audencia Business School)

  • Rhona Johnsen

    (Audencia Recherche - Audencia Business School)

  • Susanne Hertz

    (Jönköping University - Jönköping University [Sweden])

Abstract

This study explores the process of global sourcing through a case of the Swedish furnishing retailer IKEA from an interaction perspective. With a point of departure in the streams of existing research on global sourcing and the internationalization process of firms through networks, a research question is proposed concerning supply network interactions as an influence in the global sourcing process. The study uses an in-depth qualitative case study methodology, focusing on IKEA and its development of a supply network for the PAX wardrobe system during the years 2003-2009. The findings draw on 29 interviews in Sweden and China, ranging from interviews with the supply management function of IKEA to interviews with Swedish and Chinese suppliers and sub-suppliers. The findings show that the global sourcing process is influenced by interactions and network effects between supply network actors. In particular, we find that relationships between suppliers were identified and set up by IKEA, but cascaded into deeper interactions amongst suppliers at different supply network tiers. Our study contributes to global sourcing research in indicating the importance of interaction amongst supply network actors, showing how the global sourcing strategy of one actor may significantly influence the sourcing strategies of other actors. Global sourcing decisions therefore need to be understood and coordinated across global supply networks.

Suggested Citation

  • Jens Hultman & Thomas Johnsen & Rhona Johnsen & Susanne Hertz, 2012. "An interaction approach to global sourcing: A case study of IKEA," Post-Print hal-00858667, HAL.
  • Handle: RePEc:hal:journl:hal-00858667
    DOI: 10.1016/j.pursup.2011.11.001
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    Citations

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    Cited by:

    1. Dylan Bourny & Daniel Mirza & Camelia Turcu, 2023. "The culture-promotion effect of multinationals on trade: the IKEA case," Journal of Economic Geography, Oxford University Press, vol. 23(4), pages 771-800.
    2. Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "Global purchasing strategy and International Purchasing Offices: Evidence from case studies," International Journal of Production Economics, Elsevier, vol. 154(C), pages 284-298.
    3. Tran Manh Ha & Doan Ngoc Thang, 2023. "Economic sanction and global sourcing complexity: A cross‐country analysis," The World Economy, Wiley Blackwell, vol. 46(4), pages 1017-1050, April.
    4. Costa, Eric & Soares, António Lucas & de Sousa, Jorge Pinho, 2016. "Information, knowledge and collaboration management in the internationalisation of SMEs: A systematic literature review," International Journal of Information Management, Elsevier, vol. 36(4), pages 557-569.

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