A transnational perspective on knowledge sharing: lessons learned from IKEA's entry into Russia, China and Japan

Abstract

When adopting the view of the multinational corporation (MNC) as a transnational corporation, subsidiaries become strategic partners. It is important to recognize that within the MNC knowledge may originate also from subsidiaries and thus flow in different directions. The aim of the article is to understand the role of multiple knowledge flows when international retail firms enter new markets. A qualitative case study of IKEA is reported which focuses on lessons learnt from entering Russia, China and Japan. The discussion centres on forward, reverse and lateral knowledge flows within the IKEA world. Taking a transnational perspective stresses the need to understand multiple knowledge flows in order to secure both differentiation and integration.

Keywords:

• case study
• China
• IKEA
• Japan
• knowledge sharing
• retail internationalisation
• Russia

Acknowledgements

The author would like to thank the following: Handelsbanken's research foundations, SSAAPS, SI and HUR for funding this study; the staff of IKEA in China, Japan, Russia and Sweden for their help and contributions; Professor Steve Burt and Professor John Dawson, as well as the participants at the CIMaR 2007 conference for their valuable comments.

Notes

1. Within the frame of reference both ‘knowledge sharing’ and ‘knowledge transfer’ are used and discussed interchangeably. As it is not clear if there is a difference, both terms will be used. A clear example of this is when Foss (2006, 4) writes ‘ […] process of knowledge sharing (transfer)’. The basic idea with knowledge sharing is to share knowledge between two (or several) units (cf. Argote and Ingram 2000).

2. Or rather re-enter since IKEA through a joint venture more or less by coincidence entered Japan in the early 1980s but after a couple of years decided to withdraw from the Japanese market. The first IKEA store was opened on 24 April 2006 in Funabashi, Tokyo.