The Export of National Varieties of Capitalism: The Cases of Wal-Mart and Ikea

Abstract

Using the cases of Wal-Mart and IKEA, this paper takes a productive systems approach to examine ‘varieties of capitalism’ from the perspective of the ways by which production and market relations are structured and prioritized. It considers the nature of these relations and their interaction within the domestic economy and the ways that firms and national systems interact with each other in the global economy. It examines the processes by which trading standards are transported via supply chain relationships, which ultimately become embedded in products and recognized by consumers at various stages. In this analysis, the cases of Wal-Mart and IKEA provide insight into the ways by which national systems extend themselves globally, their contrasting effects on the business environments in host localities, and the impact of the resulting supply chain relations on organizational performance.

Keywords: varieties of capitalism, supply chain relations, employment relations, globalisation, retail sector, IKEA, Wal-Mart

JEL Classification: J80, L10, L20, L81, M14, M50