Market-driving strategy implementation through global supplier relationships
Date
2012
Authors
Elg, U.
Deligonul, S.Z.
Ghauri, P.N.
Danis, W.
Tarnovskaya, V.
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Journal article
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Industrial Marketing Management, 2012; 41(6):919-928
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Abstract
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.
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Copyright 2011 Elsevier