Shaping Startup Culture in Croatia: The Role of Internal Marketing in Fostering Growth

Abstract

Background: The startup scene in Croatia has been accelerating in development in the last decade, partly due to the available European Union funds. Organisational culture is one of the main prerequisites for the growth and development of successful startups. Internal marketing is often crucial to reshaping positive organisational culture and fostering innovative employee behaviour. Objectives: The purpose of this article was to investigate a main characteristic of the startup culture in the Republic of Croatia in order to recommend actions and activities of internal marketing that can help companies achieve their goals faster by engaging and motivating their employees and fostering a positive culture change. Methods/Approach: Survey research was conducted on a sample of employees of Croatian startups. The main informant approach was used to collect the answers. Results: The analysis reveals that as startups grow, they enhance gender diversity and opportunities for idea sharing yet face challenges in maintaining autonomy and constructive feedback. Additionally, mentoring, as one of the venues of internal marketing within startups, significantly bolsters adherence to company principles and fosters a culture of constructive problem-solving, highlighting the critical role of mentorship in shaping a positive organisational environment. Conclusions: Results show that startups in the Republic of Croatia still have an opportunity to develop further and improve employee-focused culture and to apply several internal marketing activities in order to engage and retain their employees, such as internal communication, professional development, employee benefits, employee recognition and employee engagement.