International start-ups rely on more than rudimentary resource allocation as they inherently require collaborative efforts for effective monetization. Entrepreneurial use of social and business networks to improve the chances of success is not something new and is part of the process of pushing innovation. Research by Evers, et. al (2012) brings forward a model of how stakeholders interact in international marketing development.
The model requires the shifting from market oriented to stakeholder oriented developmental trajectories. By using the power of stakeholders it is possible to better understand the market, business performance, and overall effectiveness through enhanced knowledge management and innovative solutions. Working in collaboration with key market stakeholders can raise the possibilities of developing stronger market penetration.
The type of stakeholder groups are as follows:
Neutral Stakeholders: Companies and industry experts that have their own goals but often share knowledge with each other for individual development. General knowledge is converted to specific firm use. It is considered single loop learning.
Cooperative Stakeholders: Cooperative stakeholders that work together for general improvement and know enough of each other to be effective. They are separate entities that have their own goals but will collaborate when it is beneficial. It is considered secondary loop learning.
Allied Stakeholders: Allied stakeholders are highly motivated businesses and industry stakeholders that work together to create new products, services and opportunities. They are engage in triple-loop learning that leads to regenerative possibilities.
Each stakeholder group has different information to offer that contributes to the developmental process. Many markets are made of neutral stakeholders that try and understand their market from various non-aligned parties that provide relevant information. When companies begin to collaborate around market problems they are able to focus the genre more closely on business needs.
As companies make a significant commitment with each other and share tight resources that deliver products/services they are engaged in allied activities that raise innovative knowledge. We can see this exist when companies team with suppliers to develop better supply chain platforms for international delivery or Internet entities that work tightly with other virtual suppliers to create more effective campaigns.
International marketing development doesn’t work in a vacuum and requires interested stakeholders to work together to create something new. Knowledge diffusion and innovation occurs when companies bring their current capabilities to collaborate with other companies to develop higher level outputs. The more focused companies are on defined outcomes the more likely they are able to orientate their efforts.
Evers, N. et. al. (2012). Stakeholders and marketing capabilities in international new ventures: evidence from Ireland, Sweden, and Denmark. Journal of International Marketing, 20 (4).