ABSTRACT

In a globalised world economy, supplier chains have promoted a phenomenon of so-called ‘commoditization’ (Friedman, 2005, p. 344), whereby all processes became standardised (and often digitalised), and available to many players. Although this can lead to lower prices and convenience, the dark side of the phenomenon is that there is scope for manipulation and exploitation. In the case of IKEA, the process of ‘commoditization’ emphasises better quality at lower prices, with sustainable environmental and social standards. IKEA has thus created a business case for the new globalised economy, in which costs are cut without sacrificing quality or stringent social and environmental standards (Konzelmann et al., 2005).