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Upgrading in global value-chains: a case study of technology-learning among IKEA-suppliers in China and Southeast Asia
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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“Such a relational form of network structure tends to favor inter-firm cooperation and credible commitment (e.g., IKEA and its suppliers in Ivarsson & Alvstam, 2011 and tuna canning firms in Havice & Campling, 2017).”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Ivarsson & Alvstam, 2011
In the citing paper
“There appears to be consensus in the literature that strong linkages within the GVC -frequently referred to as embeddedness of actors in the network (Henderson et al., 2002) -are conducive to transferring various types of knowledge, including production processes, sourcing practices, technological knowledge, and innovation capabilities (Golini et al., 2016;Golini & Gualandris, 2018;Ivarsson & Alv”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Ivarsson & Alvstam, 2011
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“Also, at the firm level, Ivarsson and Alvstam (2011) found that IKEA’s suppliers use IKEA’s technological support to improve their operational, dupli-cative, and adaptive and innovative capabilities.”
Sand in the gears: A case of a Japanese MNE in Poland
Schlunze, R. D., Dorożyński, T., & Wang, X. (2026) · Asian Business & Management · doi:10.1057/s41291-026-00345-9
“…how embeddedness evolves through experiential learning, co-location of activities, and interaction with local actors, often enabling subsidiaries to move beyond simple adaptation toward more complex roles in global value chains (Ivarsson & Alvstam, 2010 , 2011 , 2013; Ivarsson et al., 2017).”
Metadata
- 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
- 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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