Activating Stakeholders: An Approach by MNCs in Emerging Markets

Abstract

A proactive stakeholder approach by a multinational firm is explored as regards to the ways to choose and influence key political, social and business actors in a market. The stakeholders are assessed in terms of their power, legitimacy and urgency of action as well as degree of their support of the firm's market entry. The study is based on the case study of IKEA entering Russia and China, composed of 44 in-depth interviews with managers and suppliers. The results suggest that during its market entry, a firm chooses those local stakeholders that can provide it with the most support and activates them with participative roles. This approach allows it to successfully alter the market context and create the win-win situation for itself and local actors. The study suggests a novel stakeholder classification into reactive (resistant), passive, reactive (supportive) and proactive types, contributing to stakeholder and marketing strategy research.