IKEA's global expansion into the Chinese market. We use the institutional competency-based perspective to develop a theoretical explanation of IKEA's phased-in and learning-oriented entry into China. Specifically, our approach explains how IKEA's traditional competency base is adapting to match the institutional demands of the Chinese context. The focus of our theory-based analysis is on the development of the Competency Adaptation Framework for IKEA's successful expansion in the Chinese market. In conclusion, the outcomes of IKEA's learning are outlined and discussed in terms of IKEA's concrete plans and actions in the Chinese context.