The international expansion of businesses today invites the analysis of organizational mechanisms that allow these businesses to thrive in spite of the known challenges of doing business in a foreign culture or market. Specifically, the extent to which firms replicate their existing business models relative to the perceived need for local adaptation is topical. This paper is a commentary on the brilliant work of Anna Jonsson and Nicolai Foss, who outline a model of flexible replication, drawing from a longitudinal study of IKEA, the famous Swedish home furnishing company. Their study concludes with four propositions for further investigation. For the purpose of developing robust managerial applications, they recommend comparative case studies based on the four propositions. We provide a basis for questioning one of the key propositions, and offer an alternative proposition in an attempt to build a stronger foundation for further inquiry into the mechanisms of flexible replication.
Published in the Jindal Journal of Business Research in 2013, Vol. 2, No, 1. Pages 1-8.
Jindal Journal of Business Research