Start-ups initiating business relationships: process and asymmetry

Abstract

Purpose: To develop an understanding of how start-ups initiate business relationships and to identify the subprocesses that characterise business-relationship initiations in a start-up context. Design/methodology/approach: The paper builds on business relationship-initiation models, develops a theoretical framework of relationship initiation and its subprocesses and, in a multiplecase study, applies this framework to seven relationship initiations by start-ups. Findings: The key findings of this study describe the process of business-relationship initiation by start-ups, which comprises six subprocesses. Our detailed and structured initiation-process analyses show how the initiation process occurs in a start-up context and how start-ups develop their relationships. Our analyses also reveal typical patterns and critical issues, such as asymmetry, that characterise start-ups' business-relationship initiations, particularly with bigger players. Theoretical implications: This paper develops a model of the relationship-initiation process, uses it in a start-up context and identifies the critical characteristics, including asymmetry, of start-up initiations; these contributions address both the literature on start-ups and the literature on relationship initiation and development. Originality/value: This paper is the first to focus on how start-ups initiate business relationships; previous studies of business-relationship initiation have focused on mature firms. Using the industrial marketing and purchasing approach, the paper contributes to shifting the focus from interactions between resource entities to relationship-initiation processes in the context of startups.

Shaping business through and within networks: evolving from a traditional to a digital firm

“…Therefore, start-ups need to learn about contexts, other actors, and actors' interests and goals. To be able to operate, start-ups need to interact to acquire resources, link activities, and gain knowledge from other actors (Aaboen & Aarikka-Steenroos, 2017). An established firm has learned about the peculiarities of a context, as well as its and other firms' roles and interests.…”

“…Both start-ups and well-established firms need to understand how the business landscape operates and evolves (Mouzas & Ford, 2012). In an evolving business landscape, firms search for different kinds of partners with whom to develop new relationships or seek to take advantage of relationships that may have existed prior to the establishment of the firm (Aaboen & Aarikka-Steenroos, 2017;Havenvid & Rocca, 2017). Relating with other actors in a business landscape unfolds through the connection of resources and activities but also to some degree through the alignment of interests (Corsaro & Snehota, 2011).…”

“…Through prior relationships, the founder may provide a platform for the development of the firm (Aaboen & Aarikka-Steenroos, 2017;Havenvid & Rocca, 2017). The individual network of the founder can be decisive in terms of the resources that can be accessed and the kinds of interfaces that can be established (Håkansson et al, 2009).…”

“…This alignment affects the role the start-up can develop and play in a network (Johansson & Mattson, 2002). Depending on this alignment, the start-up can develop a position that other actors will perceive as more or less important (Aaboen & Aarikka-Steenroos, 2017). Interactions and relationships with others develop according to the emerging position in the network.…”

What are Important Technologies for Sustainable Development in the Trucking Industries of Emerging Markets? Differences between Organizational and Individual Buyers

“…At the individual level, Zaltman and Wallendorf [47] specified the similarities between organizational buyer behavior and consumer behavior as the cultural effects on purchasing behavior, norms governing purchasing behavior, and the role of others' expectations on purchasing behavior. Additionally, in the process of making a purchase, both organizations and individuals gather information about alternatives [48], process this information, learn about available products, determine which alternative matches the perceived needs most closely, and carry through by making a purchase.…”