Effects ok ikea's entry into a furniture production cluster

  • Vasco Eiriz Universidade do Minho, Portugal.
  • Diana Carvalho Universidade do Minho, Portugal.

Abstract

The entry of a multinational into a cluster, a geographic agglomeration in a given place or region of predominantly small and medium enterprises specialized in a given industry or related industries, impacts the incumbent in the cluster. Aiming to identify the main effects of a multinational entry on the firms’ strategy in a cluster, it was analyzed the entry of IKEA, a Swedish multinational, into the cluster of furniture production in Paços de Ferreira and Paredes, in Portugal. In this study, the data collection technique to access primary data was a survey. The sample has small enterprises, which is similar to the structure of firms in the studied cluster. Results show that more than half the sample thinks that the entry of the multinational had not affected them. However, the firms that acknowledge a significant impact, assess that impact as negative. The competitiveness factors that have improved more significantly after IKEA’s entry were new product development and exporting strategies. The main responses of incumbent firms to the multinational entry were internationalization and the development of generic strategies of differentiation and focus based on differentiation.

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Author Biography

Vasco Eiriz, Universidade do Minho, Portugal.
Professor da Universidade do Minho (Braga, Portugal). É PhD in Management da University of Manchester (Reino Unido) com uma tese intitulada "A Network and Relationship Approach to Strategic Marketing in Competitively Volatile Sectors"; Mestre em Gestão de Empresas na Área de Especialização em Marketing (Universidade do Minho, Portugal) e Licenciado em Gestão, com opção de Gestão Económico-Financeira (Instituto Superior de Gestão, Portugal). Possui artigos publicados em revistas como Industrial and Corporate Change; European Journal of Marketing; International Business Review; Transformations in Business & Economics; Journal of Transnational Management; Strategic Direction; Innovation: Management, Policy & Practice; Growth and Change; Service Industries Journal; International Entrepreneurship and Management Journal; e International Journal of Globalisation and Small Business.

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Published
2016-04-30
How to Cite
Eiriz, V., & Carvalho, D. (2016). Effects ok ikea’s entry into a furniture production cluster. Revista Produção E Desenvolvimento, 2(1), 90-102. https://doi.org/10.32358/rpd.2016.v2.127
Section
Productive Systems