Developing strategic supplier networks: An institutional perspective

Summary, in English

This study examines the exposure of the members of supplier networks to two layers of social influences. First, as the network connects an actor to a foreign constellation, the actor faces influences of a global character. Second, each individual actor experiences different forces emanating from its indigenous institutional environment. The exposure to two institutional practices presents a conundrum for each network member. In this duality they alter their behavior in order to resolve the contrast and clashes of layered forces. By drawing upon institutional theory and in-depth study of a global retailer, IKEA, this study shows how the retailer handles this duality. The study increases understanding of how a supplier network can be socially transformed into an idiosyncratic asset which is costly to imitate for rivals and thus offers a unique competitive advantage to the firm. The framing which is used for IKEA's strategy under institutional theory in this article underscores the regulative, cognitive, and normative socialization as part of a company's strategic process to align relationships with its partners. (C) 2012 Elsevier Inc. All rights reserved.

• Author: Seyda Deligonul; Ulf Elg; Erin Cavusgil; Pervez N. Ghauri
• Department/s: Department of Business Administration
• Publishing year: 2013
• Language: English
• Pages: 506-515
• Publication/Series: Journal of Business Research
• Volume: 66
• Issue: 4
• Links: http://dx.doi.org/10.1016/j.jbusres.2011.12.003
• Document type: Journal article
• Publisher: Elsevier
• Topic: Business Administration
• Keywords: Socialization; Global strategy; Supplier relationships; Supplier; network; Institutional theory; IKEA
• Status: Published
• ISBN/ISSN/Other: ISSN: 0148-2963