Increasing Value Proposition, Engaging Stakeholders for Innovation

Research literature recognizes the importance of a firm's ability to identify and develop a compelling customer value proposition (CVP) as the foundation of its business model (Miller and Swaddling, 2002). This requires the leadership of the firm to possess the ‘soft skills' to engage with key stakeholders, develop trust, navigate risk and uncertainty within their task environment, and use knowledge management and organizational learning. Opportunity screening is also essential to successful commercialization, typically involving the leadership team possessing entrepreneurial cognition and the application of biases and heuristics to guide decision-making. This chapter examines the role of company leadership within innovative small firms (ISFs) in identifying and co-creating value with key stakeholders in the commercialization of innovations. Research literature is discussed, and survey data and case studies are used to provide context and relevant examples.