International Relationship Marketing: Stakeholders Selection Remains a Weakness in Emerging Markets

Abstract

Emerging markets represent an important growth opportunity that is often overlooked. However, the internationalization process within highly different cultural and geographical contexts becomes more complex and requires in depth information of local market characteristics, impacting stakeholder selection.

Relying on a Relationship Marketing approach, the purpose of this research is to gain an understanding of how to obtain strategic information about emerging markets and the role of stakeholders that companies strategically involve.

In the first research phase, an exploratory CAWI survey was conducted to understand emerging markets' relationship orientations in a particular industry: specifically the global kitchen furniture industry, characterized by strong orientations toward product design and service. All 56 Italian companies registered to the main furniture association were contacted, with a 70% response rate. The second research phase was qualitative, particularly suitable to extend a theory in different cultural contexts. Twelve top managers from eight companies of the first sample were interviewed, using a semi-structured survey protocol. Based on this mixed methodology, a pattern of strategically selected relationships for companies in an internationalization phase is developed.

While a Relationship Marketing approach suggests the creation of a holistic stakeholder strategy, empirical research demonstrates that companies at the beginning take into consideration different priorities, keeping a low number of interactions with few stakeholders because relationship management is time consuming and expensive.  As such, they select only a few partners, each one for specific objectives, and sometimes in an ad hoc fashion. Further research is needed to extend results to service companies.