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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.

This qualitative study explores how multinational enterprises (MNEs) approach sustainable innovation through the lens of innovation theory and doughnut economics. The study proposes a conceptual framework to evaluate the practices of businesses and the findings illustrate how sustainable innovation occurs within two MNEs. Based on interviews with professionals of two Swedish MNEs, responsible for sustainability, the study examines how sustainable innovations lead to the redesign of core business pillars and transforms the operating market for the MNE. Overall, this study makes a theoretical contribution by formulating an application of Raworth’s (2017) doughnut model to business strategy. It also provides practical insight into the dynamics of sustainable innovation, which aims to inform and inspire further progress in sustainable development by businesses and academia.

What if companies try to combine the IKEA and Trophy winner effects? The purpose of this study is to understand the similarities and differences between both effects. This is not only theoretically but also practically important for the way that companies interact with their customers.

Successful work – invested either to create or to obtain a product – increases the customers’ valuation of the product. This phenomenon known as the IKEA or Trophy winner effect. This study directly compares both effects using experiments with two different products (paper planes and 3D puzzles). Moreover, this study tests whether they reinforce each other.

The Trophy winner effect looms larger than the IKEA effect for inexpensive items. For slightly more expensive products, this study finds a Trophy loser effect. Positive emotions of trophy winners drive the results for inexpensive products, whereas negative emotions of trophy losers drive the results for slightly more expensive products.

The relevance of the IKEA and Trophy effects is influenced by the type of product. Customers’ labor invested in the product itself is of greater importance the more expensive the product is. As soon as customers interpret the interaction with other customers as competition, the effect on valuation can be substantial even for inexpensive products. Future studies could try to replicate our results with different product categories.

Although the IKEA and Trophy effects are no new phenomena in consumer psychology and behavioral economics, they have not been compared to each other or combined yet. The results are useful for researchers and practitioners alike. They yield implications for product customization and customer empowerment.

The purpose of this research is to present a model for values‐based sustainable service business grounded in the concept of values‐based service quality.

Based on a literature review and interpretations of five narratives from a values‐driven company, IKEA, the paper proposes a model of values‐based service quality for sustainable service business.

The study distinguishes four dimensions of values‐based service quality and five dimensions of sustainability. These are all incorporated in the proposed model.

This is a fundamental study of the role of values‐based service quality in creating sustainable service business based on value‐in‐use for customers and the desirable values of corporate culture with which products and services are associated.

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.

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.

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.

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

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

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.

Marketing and Strategy.

BA level.

The case deals with IKEA’s unique service experience, and the company’s plans to expand into India. The question that is dealt with primarily is, “Can IKEA successfully introduce and adapt its service experience to the Indian market”. IKEA’s service experience is critically explored, as well as the concept of “service” in India.

After studying the case, it is expected that students will have a better understanding of what is a “service experience”, as well as how it can give a company a competitive advantage. It is also expected that students will have a better understanding of the retail market and consumer behavior in India.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

The aim of this paper is to examine the relationship between corporate branding and market driving. This is achieved by focusing on key dimensions of brand identity such as brand values and staff behaviours, while acknowledging the role of vision and organisational culture. The links between these brand constituents and the actual activities of the firm in a market are explored through interactions with stakeholders.

This research is based on an in‐depth case study of IKEA at a corporate level and its local market activities in Russia. The single‐case approach is used to generate insights into how corporate branding is related to market driving practices and to identify the mechanisms of market driving in the Russian market.

The corporate brand provides a further source of the “leap” in customer value recognised as a requirement for a market driving approach. Through a case study of IKEA in Russia it is shown that the core values of the brand guide both the behaviour and activities of internal stakeholders and the relationships with external stakeholders, and the interactions between the corporate “global” brand values and local market level activities are explored.

The paper provides insights on the role of a corporate brand as a driving force of market driving from a broad stakeholder perspective.

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?”.

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.

The study distinguishes four types of “values” in the example of IKEA: economic, social, environmental, and communication‐based. These are incorporated into the model.

This is the first study of the role of values‐based service brands in creating value in use for customers.

The purpose of this paper is to analyse the marketing strategy in China of the furnishing retailer IKEA in the context of standardisation and adaptation of marketing activities. IKEA's strategy in China is compared to its corporate strategy throughout the rest of the world.

The four P classifications are used as a framework to compare the central marketing strategies of IKEA with marketing strategies used in China. The paper builds on both primary and secondary data. Interviews with senior managers at IKEA are conducted and studies on business and retailing in China are used.

The marketing strategies used by IKEA in China are found to be different from the standardised strategies it uses throughout the rest of the world. Several of the changed strategies are central to the business concept of IKEA.

The present paper shows the challenges for a standardised marketing concept and its implications.

The paper provides, in the context of the standardisation and adaptation of marketing activities, a more nuanced and up‐to‐date picture of the strategies used by IKEA compared to previous studies.

The purpose of this paper is to discuss and problematise how leadership and employees, or “employeeship”, are constructed within IKEA, a global firm often associated with national identity, and connected to distinct values and a leadership ideal. From a critical management perspective, the authors' intent was to study whether there were hierarchies and polarisations in constructions of leadership and, if so, how they were manifested.

The empirical material consists of 17 interviews with Swedish and non-Swedish managers at the senior management level and internal documents.

The analysis of the empirical material supports the finding that employees are constructed in superior vs subordinate positions based on beliefs about nationality (ethnicity), wherein the construction of Swedishness is ranked above other nationalities. Based on these constructions, two different dimensions of a leader emerge. The first dimension is one of leading and supporting, which involves personal development and is regarded as something positive. The second dimension involves being a manager, which is perceived as conservative, dreary and unappealing.

The study illustrates how leaders in a global firm construct hierarchies and polarisation in the daily work.