Harleen Sahni and Nupur Chopra
Globalization and its impacts on economies, societies and cultures has been a hot topic of research and discussion in the past few years. Recent times are witnessing the upsurge…
Abstract
Globalization and its impacts on economies, societies and cultures has been a hot topic of research and discussion in the past few years. Recent times are witnessing the upsurge of another doctrine in the international arena – the practice of isolationism, a policy majorly related to political affairs but extendable to business, sustainability, green behaviour and various other spheres.
Globalization has resulted in various kinds of disordering and reordering of business objectives and practices. Modern day consumers have new needs and lifestyle orientations. The flip side is that increased global operations have precipitated newer challenges for Corporate Social Responsibility (CSR). But for managing globalization, isolationism is not the answer (Altman, 2007). Isolationism cannot be expected to have reciprocative effects of globalization. In fact, it may be in dispute with interests of many social stakeholders.
Responsible businesses have reoriented their CSR initiatives towards environmental and social stewardship. Sustainable Development Goals (SDGs) are the more recent strategic tools that provide a more focussed mandate to address sustainability issues emerging from increased production, consumption and disposal. In the times of vulnerabilities and disruption, there is an increasing emphasis on developing CSR as a horizontal enabler of SDGs.
Fashion & textile industry is the second most polluting industry globally. Fast fashion is having catastrophic impacts on the environment. Due to the massive size and magnitude of the global fashion & textile industry (USD 920 billion in 2018 and projected to grow to USD 1,230 billion by 2024), it becomes important to examine dimensions of CSR, in reference to SDGs in this sector. The fashion & textile industry is one of the most globally integrated. Sourcing, production, supply chain management, market development and retailing are all dependent on integration and collaboration amongst various business entities and regulatory bodies across national boundaries. Isolationism may result in disorientations in the enabling environments of this industry.
As sustainability is going to be the most important directive in coming future, the study aims to examine the cohesiveness between the current CSR initiatives of the fashion & textile sector and the prescribed SDGs. The study will further investigate if the instantaneous momentum of isolationism could cultivate multifaceted challenges for the horizontal integration of CSR in SDGs; and if yes, what will be the nature of these challenges?
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Mette Andersen and Tage Skjoett‐Larsen
The paper aims to present a conceptual framework for analysing CSR practices in global supply chains. It also seeks to demonstrate how a pioneering Swedish company, IKEA…
Abstract
Purpose
The paper aims to present a conceptual framework for analysing CSR practices in global supply chains. It also seeks to demonstrate how a pioneering Swedish company, IKEA, implements and manages CSR practices at its suppliers.
Design/methodology/approach
A case analysis of IKEA illustrates the implementation and management of CSR practices in supply chains. The focus is on internal and external integration of CSR practices in the supply chain. IKEA holds a leading position in its supply chain and is a global brand‐owner. Personal interviews are performed with employees from one of the company's trading areas.
Findings
Practising CSR in supply chains requires that CSR is embedded within the entire organisation, including subsidiaries abroad and offshore suppliers. It includes employee training and sharing of experience, training of key personnel at the supplier level, positive incentives for suppliers in the form of long‐term contracts and enlarged purchasing orders, and regular auditing of suppliers' performance.
Research limitations/implications
The paper focuses on CSR practices in a specific company's supply chain. Therefore, the findings cannot be generalised to other companies. Also, the practices have been studied from the perspective of the focal company.
Practical implications
The CSR practices of IKEA can serve as inspiration for other companies that are considering adopting corporate codes of conduct.
Originality/value
The paper presents a company that has a long tradition for working with environmental and social issues. The paper demonstrates how the actual management of CSR practices is determined by context‐dependent factors.
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Sustainability has been receiving increasing attention in recent times, due to increasing pressures from consumers and stakeholders. Based on few selected indicators, we suggest a…
Abstract
Purpose
Sustainability has been receiving increasing attention in recent times, due to increasing pressures from consumers and stakeholders. Based on few selected indicators, we suggest a method for calculating and forecasting the degree of sustainability supply chain considering the case of the IKEA Group.
Design/methodology/approach
In order to predict the sustainability of IKEA’s supply chain, utilizing IWAY fulfillment scores, this research uses the concept and theory of grey prediction models and moving probability-based Markov models.
Findings
According to the findings of prediction, we observe that the level of supply chain sustainability is declining for the case in the forecast year 2022. The results are perceived as per the outcomes of the first-order, one-variable-based grey prediction model (GM (1, 1) model) and the grey moving probability state Markov model-based error correction.
Research limitations/implications
Operationalizing sustainability, we consider the contribution a company’s supply chain toward the advancement of human rights, ethical labor practices, environmental improvement and anti-corruption principles into the account of supply-chain sustainability.
Practical implications
In order to understand the future trends in the supply chain sustainability performances of the firms and make corrective actions, managers may take a note on the results of prediction and they can subsequently work on the policy implications.
Originality/value
We build an advanced prediction model for forecasting the level of sustainability performances for a case firm using the indicator of human rights, ethical labor practices, environmental improvement and anti-corruption principles.
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Sara Hajmohammad, Robert D. Klassen and Stephan Vachon
Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder…
Abstract
Purpose
Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder reactions. Procurement managers at these firms can pursue multiple strategies to address this risk with suppliers, including acceptance, monitoring-based mitigation, avoidance and collaboration-based mitigation. This study aims to investigate how perceived risk, supplier dependence and financial slack resources contribute to the strategic preferences of these managers.
Design/methodology/approach
A vignette-based experiment with procurement managers is used to examine the factors affecting the managers’ strategic preferences in managing supplier sustainability risk.
Findings
The empirical results revealed that the procurement managers’ preference for avoidance or collaboration strategies was stronger when they perceived higher risk, but their preference varied based on the degree of supplier dependence. Specifically, when they perceived a high level of risk, procurement managers were more inclined toward a monitoring strategy with dependent suppliers and preferred an avoidance strategy when they dealt with independent ones. Financial slack was also an influential factor: managers with more slack at their disposal preferred to collaborate with suppliers to address the risk; on the other hand, limited slack shifted their preference toward an acceptance strategy, regardless of the level of risk.
Originality/value
This study helps to develop a more nuanced picture of how procurement managers make challenging and complex trade-offs when responding to supplier sustainability risk.
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A proactive stakeholder approach by a multinational firm is explored as regards to the ways to choose and influence key political, social and business actors in a market. The…
Abstract
A proactive stakeholder approach by a multinational firm is explored as regards to the ways to choose and influence key political, social and business actors in a market. The stakeholders are assessed in terms of their power, legitimacy and urgency of action as well as degree of their support of the firm's market entry. The study is based on the case study of IKEA entering Russia and China, composed of 44 in-depth interviews with managers and suppliers. The results suggest that during its market entry, a firm chooses those local stakeholders that can provide it with the most support and activates them with participative roles. This approach allows it to successfully alter the market context and create the win-win situation for itself and local actors. The study suggests a novel stakeholder classification into reactive (resistant), passive, reactive (supportive) and proactive types, contributing to stakeholder and marketing strategy research.
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– The purpose of this paper is to explore the nature of brand contract in B2B from two perspectives: the theological and pragmatic.
Abstract
Purpose
The purpose of this paper is to explore the nature of brand contract in B2B from two perspectives: the theological and pragmatic.
Design/methodology/approach
A review of the branding literature challenges the dominant notion of the brand covenant as a firm driven, unilateral promise, referred to as a theological contract. The study adds to this the pragmatic perspective of a social contract, as deployed by the social sciences and IMP literatures. A tentative framework of a dialectical contract is developed through drawing on three cases of Chinese suppliers for the focal firm, IKEA.
Findings
First, both types of contract are identified in the firm’s practices. Second, the specific goals and roles of managers and suppliers in each contract are defined. The theological contract is used by managers to strengthen suppliers’ beliefs in the company’s vision and mission, while the pragmatic one is employed by both parties for the implementation of the brand’s norms and brand equity. Third, a new framework for and the definition of a dual, dialectical brand contract in B2B are developed.
Practical implications
Managers are advised to mediate between the theological pledge of their brand and its pragmatic implementation.
Originality/value
The paper challenges the dominant theological discourse in extant branding literature and puts forward a dialectical approach as a new proposition.
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Pervez N. Ghauri, Veronika Tarnovskaya and Ulf Elg
The purpose of this paper is to explore how a global supplier network can support and contribute to a market driving strategy. Theoretically, the paper contributes by integrating…
Abstract
Purpose
The purpose of this paper is to explore how a global supplier network can support and contribute to a market driving strategy. Theoretically, the paper contributes by integrating the market driving strategy and the network approach. IKEA is considered one of the leading market driving firms. The paper studies its activities in establishing supplier networks in Russia and Poland.
Design/methodology/approach
This is an exploratory study of four suppliers of IKEA in Poland and Russia. Data are collected through 11 in‐depth interviews with IKEA's corporate and middle level managers and with managers and technicians from its suppliers in Russia and Poland. Results are drawn through matrix coding techniques and pattern matching.
Findings
Findings confirm IKEA's market driving strategy and how it has been able to restructure the market and successfully develop an efficient supplier network as a part of its market driving strategy.
Originality/value
Market driving approach has been suggested as a more pro‐active form of market orientation. It is characterised by an ability of the firm to shape the market conditions, to influence customers and offer completely new value propositions through its unique business process.
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Bo Enquist and Samuel Petros Sebhatu
The purpose of this book chapter is to examine how sustainable developmental goal (SDG) implementation for sustainability transformation can be driven by the business practice of…
Abstract
The purpose of this book chapter is to examine how sustainable developmental goal (SDG) implementation for sustainability transformation can be driven by the business practice of a multinational enterprise (MNE). It concerns sustainability transformation that takes place in complex environments with the engagement of different types of stakeholders from various organizations and domains. The chapter focuses on inclusive stakeholder orientation to move from a firm-centric to a societal perspective grounded in an ethical, macro-oriented, and network philosophy. The transformation is embedded in the global transformation agenda, the UN 2030 agenda, with its 17 SDGs. In this chapter, the authors assess MNEs’ role in implementing the SDGs by conceptualizing sustainability transformation practice in a business context of IKEA grounded in circular economy and circular society thinking. Implementing the SDGs strengthens the “challenge-driven transformative change.” Based on the theoretical and conceptual framework, the authors have constructed a matrix and contextualized the case of IKEA. It results in a descriptive analysis of MNE SDG implementation for sustainability transformation. The chapter has contributed a general model for a sustainability transformation practice in a business context embedded in circular economy and circular society thinking, which can utilize for challenge-driven transformative change. The new model has been redesigned for its new purpose. The model is constructed based on a new theoretical and conceptual framework and from the context of IKEA as a MNE acting as a globally integrated enterprise with a circular and societal transformation focus.
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Bo Edvardsson, Bo Enquist and Michael Hay
The purpose of this paper is to present a model for values‐based service brands grounded in values‐based service management. In undertaking this task, the paper addresses two…
Abstract
Purpose
The purpose of this paper is to present a model for values‐based service brands grounded in values‐based service management. In undertaking this task, the paper addresses two research questions: “What is the role of values in creating customer value and corporate identity?” and “How can values and corporate identity be communicated to customers and thus contribute to customer‐perceived service value?”.
Design/methodology/approach
Based on five narratives from a value‐driven company, IKEA, the paper proposes a model of values‐based service brands in action. The model is based on interpretations of how IKEA manages and communicates values in practising values‐based service management.
Findings
The study distinguishes four types of “values” in the example of IKEA: economic, social, environmental, and communication‐based. These are incorporated into the model.
Originality/value
This is the first study of the role of values‐based service brands in creating value in use for customers.
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Veronika V. Tarnovskaya and Leslie de Chernatony
This paper aims to explore the mechanism of brand internalisation when a brand transcends national borders. It focuses on the ways international and local managers interpret the…
Abstract
Purpose
This paper aims to explore the mechanism of brand internalisation when a brand transcends national borders. It focuses on the ways international and local managers interpret the brand, develop brand understanding and enact it through communication with other colleagues.
Design/methodology/approach
The research is based on a case study of IKEA in Russia and China during 2003‐2004.
Findings
The processes of brand conceptualising, comprehending and activating are identified, characterised by a weakening collective sense making amongst employees locally. Brand activating represents a discontinuity stage of brand internalisation when a shared brand understanding by employees becomes increasingly difficult to achieve. As such managers should broaden their brand contexts to include cultural elements and cues, involve local staff as well as adopt roles which facilitate collective sense‐making processes.
Research limitations/implications
New research should explore local employees' brand experiences throughout their brand internalisation. It should also delve deeper into the ways they enact their brand in relationships with other local stakeholders.
Practical implications
The study argues that international managers need greater awareness of theirs' and local employees' roles in brand internalisation. Managers need to create common frameworks for sense making and work towards partnership relationships with local stakeholders.
Originality/value
This is an original paper of value to global retailers and other branded organisations.