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Upgrading in global value-chains: a case study of technology-learning among IKEA-suppliers in China and Southeast Asia

Ivarsson, I., Alvstam, C. G.·2011·Journal of Economic Geography

DOI 10.1093/jeg/lbq009

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Abstract

This article analyses technology upgrading in global value-chains, by using unique data from the Swedish-based home-furnishing retailer IKEA and 23 of its suppliers in China and Southeast Asia. We show how these suppliers use IKEA’s technological support to improve their operational and duplicative capabilities, and, more importantly, their adaptive and innovative capabilities. Theoretically, this suggests that typologies of governance structures need to include a ‘developmental’ category, where buyer-driven value-chains are coordinated by powerful retailers with a global sourcing organization designed to facilitate close, local and long-term interaction, resulting in an efficient sourcing of low-cost, finished products, as well as technological upgrading among suppliers.

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“Empirical evidence regarding vertical effects include Ivarssony and Alvstam (2011) findings showing that local IKEA suppliers use their buyer’s technological support to improve their operational and duplicative capabilities, as well as their adaptive and innovative capabilities.”
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“…mastering advanced technologies; product upgrading about moving into more sophisticated product lines; functional upgrading about engaging in more value-added functions; and inter-sectoral upgrading about moving into new but often related industries (Gereffi et al., 2011; Ivarsson & Alvstam, 2011).”
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Authors: Ivarsson, I., & Alvstam, C. G.
Affiliations: University of Gothenburg (SE)
Venue: Journal of Economic Geography
Publisher: Oxford University Press (OUP)
Published: 2010-04-28
Volume: 11
Issue: 4
Pages: 731-752
ISSN: 1468-2702 (ISSN-L)
1468-2710
DOI: 10.1093/jeg/lbq009
OpenAlex: W2010775983
Cited by: 140
References: 17
Citations by year: 2026: 3 · 2025: 4 · 2024: 7 · 2023: 8 · 2022: 17 · 2021: 26 · 2020: 12 · 2019: 10 · 2018: 14 · 2017: 8 · 2016: 7 · 2015: 7 · 2014: 7 · 2013: 3 · 2012: 5
FWCI: 9.23
Type: journal article
Language: en
Open access: closed
Locations: Journal of Economic Geography (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Funders: Vetenskapsrådet
Topics: Social Sciences › Business, Management and Accounting › Strategy and Management › Global trade, sustainability, and social impact
Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
Social Sciences › Development › Software Engineering and Design Patterns
Keywords: technological upgrading, global value chains, IKEA, supplier relationships, buyer-supplier relations, adaptive skills, innovation ability, home furnishing industry, China, Southeast Asia

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Upgrading in global value-chains: a case study of technology-learning among IKEA-suppliers in China and Southeast Asia

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