Developing strategic supplier networks: An institutional perspective

TY - JOUR

T1 - Developing strategic supplier networks

T2 - An institutional perspective

AU - Deligonul, Seyda

AU - Elg, Ulf

AU - Cavusgil, Erin

AU - Ghauri, Pervez N.

PY - 2013/4

Y1 - 2013/4

N2 - 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.

AB - 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.

KW - Socialization

KW - Global strategy

KW - Supplier relationships

KW - Supplier network

KW - Institutional theory

KW - IKEA

KW - MARKET-DRIVEN

KW - ORGANIZATIONAL-CHANGE

KW - INDUSTRIAL NETWORKS

KW - CHANNELS

KW - FIRMS

KW - LEGITIMACY

KW - BEHAVIOR

U2 - 10.1016/j.jbusres.2011.12.003

DO - 10.1016/j.jbusres.2011.12.003

M3 - Article

SN - 0148-2963

VL - 66

SP - 506

EP - 515

JO - Journal of Business Research

JF - Journal of Business Research

IS - 4

M1 - N/A

ER -