Starting a new venture is precarious enough, but doing so internationally is especially challenging. Research from the University of Vaasa suggests that social media can be a useful tool as it allows entrepreneurs to learn about foreign markets in a quick and easy way.

This is especially so when combined with so-called ambidextrous learning, which capitalizes on both exploitative and exploratory learning.

Types of learning

Exploitative learning is when current market information already owned by a firm is used, while exploratory learning is when the company engages in learning new opportunities and risks in the market.

“A company can use social media for exploitative learning, but also for exploratory learning to survive in foreign markets. The company can also switch between these two approaches, according to the situation and company strategy. The use of social media has a positive impact on ambidextrous learning,” the author explains.

The paper explains how platforms like LinkedIn can be invaluable, as can lesser-known tools, such as Tagboard, AgoraPulse, and Buzzsumo, in finding out about potential customers, competitors, and the state of the market in general. The author believes that this significantly lessens any risks and challenges involved in entering foreign markets, and the minimal costs associated with such learning makes it accessible to most firms.

Ambidextrous learning can help firms to combine new external knowledge with existing knowledge and prevent inefficiency and short-sightedness. It can also help firms to achieve sustainable competitive advantage.