Ikea's Entry Mode
RETAIL INTERNATIONALIZATION AND THE ROLE OF KNOWLEDGE SHARING – THE CASE OF IKEAs EXPANSION INTO THE RUSSIAN MARKET
Anna Jonsson
School of Economics and Management Department of Business Administration Lund University e-mail: anna.jonsson@fek.lu.se
Abstract
Research on the internationalisation process and retail internationalisation acknowledges the relevance of knowledge management and organizational learning, even though there is a lack of discussion about the specific constructs and approaches. The central role of knowledge sharing in the internationalisation process is rarely stressed. The aim of this paper therefore is to stress the importance of a more critical discussion about knowledge in theories about internatioanlisaiton and to develop a tentative framework for knowledge and knowledge sharing based upon previous literature about knowledge sharing and the internationalization process (Johanson & Vahlne, 1977, 1990). The theoretical approach is then used to discuss and analyse the case of IKEA’s entry to the Russian market. The purpose of this research should be regarded as explorative - in order to increase our understanding on whether and how general internationalisation theories can be applied within retailing and on the role of knowledge and knowledge sharing. Keywords: knowledge; knowledge sharing; the internationalization process model; retail internationalization; IKEA; Russia Suggested track: Knowledge sharing within and across organizations and cultures
1 Introduction
The retail sector has become more and more international in its outlook and operations (McGoldrick, 2002). Furthermore, internationalization of retailers is often argued to be particularly challenging and complex, especially when compared to manufacturing. Retailers normally need to develop and manage a set of stores on the new market, and thus cannot use a traditional exporting strategy. This will involve the recruitment and education of staff, development of property,
Anna Jonsson
School of Economics and Management Department of Business Administration Lund University e-mail: anna.jonsson@fek.lu.se
Abstract
Research on the internationalisation process and retail internationalisation acknowledges the relevance of knowledge management and organizational learning, even though there is a lack of discussion about the specific constructs and approaches. The central role of knowledge sharing in the internationalisation process is rarely stressed. The aim of this paper therefore is to stress the importance of a more critical discussion about knowledge in theories about internatioanlisaiton and to develop a tentative framework for knowledge and knowledge sharing based upon previous literature about knowledge sharing and the internationalization process (Johanson & Vahlne, 1977, 1990). The theoretical approach is then used to discuss and analyse the case of IKEA’s entry to the Russian market. The purpose of this research should be regarded as explorative - in order to increase our understanding on whether and how general internationalisation theories can be applied within retailing and on the role of knowledge and knowledge sharing. Keywords: knowledge; knowledge sharing; the internationalization process model; retail internationalization; IKEA; Russia Suggested track: Knowledge sharing within and across organizations and cultures
1 Introduction
The retail sector has become more and more international in its outlook and operations (McGoldrick, 2002). Furthermore, internationalization of retailers is often argued to be particularly challenging and complex, especially when compared to manufacturing. Retailers normally need to develop and manage a set of stores on the new market, and thus cannot use a traditional exporting strategy. This will involve the recruitment and education of staff, development of property,
References: http://www.ikea-group.ikea.com/corporate, 2005-01-22.