The role of networks and matching in market entry to emerging retail markets

Abstract

Purpose

The purpose is to investigate how a retailer identifies critical network actors and gains their support when entering an emerging market. and to examine the role of a firm's relationships with different types of actors on the new market.

Design/methodology/approach

The study is of an exploratory nature, and based on an inductive and qualitative research method. A case study of IKEA's entry into Russia and China was conducted.

Findings

It is argued that IKEA's entry into China and Russia was successful because of its dynamic utilization of matching and networking capabilities. The study explains how the support of relationships with, for example, political actors, interest groups and media supported the entry and the development of a positive consumer image.

Research limitations/implications

This is a qualitative, in depth study and future research is needed in order to test the generalizability of the proposed framework and models.

Practical implications

The paper shows how retail managers can generate the support of different types of actors and relationships when entering new markets.

Originality/value

Traditionally consumer product firms' entry to new markets is regarded as a function of dealing with environmental, cultural and legal differences, and adapting products and strategies accordingly. This paper extends understanding by showing that matching and networking capabilities to mobilize resources, actors and activities on global, macro and micro levels are also critical components. It also relates the firm's business relationships with relationships to socio‐political actors on the new market.

Citation

Elg, U., Ghauri, P.N. and Tarnovskaya, V. (2008), "The role of networks and matching in market entry to emerging retail markets", International Marketing Review, Vol. 25 No. 6, pp. 674-699. https://doi.org/10.1108/02651330810915583