Framing multi-stakeholder value propositions: A wicked problemlens

Abstract

Balancing various stakeholder (often contradictory) expectations creates tensions when developing value propositions for a new firm. Customers, funders, owners, and society-atlarge often expect different value outcomes from a firm. They therefore have different motivations for being involved in the firm. These differences in value expectations are more strongly expressed in technology-based ventures, which often rely heavily on access to heterogeneous external resources such as capital, specialised knowledge, distribution, and service. In this paper, we use a wicked problem lens to explore specific challenges for companies to mediate seemingly contradictory propositions. We use two dimensions of wicked problems involving complexity and complicatedness, and conduct a secondary analysis of seven technology venture case studies from Australia and New Zealand. We then categorise the configuration types of these firms' stakeholder value propositions in the context of their scale-up process. We contribute to the value proposition and business model development research streams by suggesting that the challenge of mediating value propositions that conflict can manifest itself in four types of configurations: Easy, complicated, complex and wicked. Complicated and complex propositions are thorny, but with structures and processes in place, they can be adequately addressed. On the other hand, wicked propositions consist of many unknowns and require firms to collaborate with stakeholders to derive outcomes that align company scaling objective with stakeholder value propositions.