IDEAS home Printed from https://ideas.repec.org/a/eee/ijrema/v26y2009i4p314-323.html
   My bibliography  Save this article

The impact of formal processes for market information acquisition and utilization on the performance of Chinese new ventures

Author

Listed:
  • Song, Michael
  • Di Benedetto, C. Anthony
  • Parry, Mark E.

Abstract

The authors examine the performance impact of formal market information processes. Specifically, a theoretical model is developed that hypothesizes that formal processes for market information acquisition and utilization have direct and positive main effects on new venture success and is then tested using a sample of 222 new ventures located in China. Findings indicate that new venture success is positively correlated with the use of formal processes for market information acquisition and use. Moreover, the relative importance of formal processes to the acquisition and use of market information depends on whether the new venture serves an emerging or established market. In particular, the impact of formal processes for information acquisition is higher among new ventures that serve emerging markets. In contrast, the impact of formal processes for information use is higher among new ventures that serve established markets. We present managerial implications of our results. For example, a new venture with a strong market orientation can respond quickly to emerging marketplace needs, and can even seize the advantage from incumbents. If it is in an emerging market, however, the new venture management team should strive to excel at information acquisition; in an established market, it is important for the management team to excel at information utilization.

Suggested Citation

  • Song, Michael & Di Benedetto, C. Anthony & Parry, Mark E., 2009. "The impact of formal processes for market information acquisition and utilization on the performance of Chinese new ventures," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 314-323.
    • Handle: RePEc:eee:ijrema:v:26:y:2009:i:4:p:314-323
    DOI: 10.1016/j.ijresmar.2009.08.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167811609000676
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijresmar.2009.08.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kurtis G. Fuellhart & Amy K. Glasmeier, 2003. "Acquisition, assessment and use of business information by small- and medium-sized businesses: a demand perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(3), pages 229-252, July.
    2. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    3. Barbara Dyer & X Michael Song, 1997. "The Impact of Strategy on Conflict: A Cross- National Comparative Study of U.S. and Japanese firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(3), pages 467-493, September.
    4. McCann, Joseph E., 1991. "Patterns of growth, competitive technology, and financial strategies in young ventures," Journal of Business Venturing, Elsevier, vol. 6(3), pages 189-208, May.
    5. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    6. Yadong Luo, 2003. "Industrial dynamics and managerial networking in an emerging market: the case of China," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1315-1327, December.
    7. Noel Capon & John U. Farley & Scott Hoenig, 1990. "Determinants of Financial Performance: A Meta-Analysis," Management Science, INFORMS, vol. 36(10), pages 1143-1159, October.
    8. Jinhong Xie & X. Michael Song & Anne Stringfellow, 1998. "Interfunctional Conflict, Conflict Resolution Styles, and New Product Success: A Four-Culture Comparison," Management Science, INFORMS, vol. 44(12-Part-2), pages 192-206, December.
    9. Coviello, Nicole E. & Brodie, Roderick J. & Munro, Hugh J., 2000. "An investigation of marketing practice by firm size," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 523-545.
    10. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2008. "Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 383-400, April.
    11. Liu, Sandra S. & Luo, Xueming & Shi, Yi-Zheng, 2003. "Market-oriented organizations in an emerging economy: A study of missing links," Journal of Business Research, Elsevier, vol. 56(6), pages 481-491, June.
    12. Abbie Griffin & John R. Hauser, 1992. "Patterns of Communication Among Marketing, Engineering and Manufacturing---A Comparison Between Two New Product Teams," Management Science, INFORMS, vol. 38(3), pages 360-373, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ejikeme Emmanuel Isichei & Ike Nnia & Agbaeze Kalu Emmauel & Anthony Igwe & Chukwu Benjamin Ibe & Godwin Iyuwuna Dodd Peterside, 2023. "Linking Competitive Intelligence, Learning Orientation and Export Performance of SMEs," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. Schrammel, Tine, 2013. "Bridging the Institutional Void: An Analytical Concept to Develop Valuable Cluster Services," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(2), pages 114-132.
    3. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    4. Zhang, Junfeng & Wu, Wei-ping, 2013. "Social capital and new product development outcomes: The mediating role of sensing capability in Chinese high-tech firms," Journal of World Business, Elsevier, vol. 48(4), pages 539-548.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jianghua Zhou & Rui Wu & Jizhen Li, 2019. "More ties the merrier? Different social ties and firm innovation performance," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 445-471, June.
    2. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    3. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.
    4. Li, Yuan & Wei, Zelong & Zhao, Jie & Zhang, Chenlu & Liu, Yi, 2013. "Ambidextrous organizational learning, environmental munificence and new product performance: Moderating effect of managerial ties in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 95-105.
    5. Jun Lin & Steven Si, 2010. "Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 561-581, September.
    6. Yang, Wei & Meyer, Klaus E., 2020. "How do local and foreign firms compete? Competitive actions in an emerging economy," International Business Review, Elsevier, vol. 29(3).
    7. Jian Du & Chao Zhou, 2019. "Does guanxi matter in the foreign expansion of Chinese manufacturing firms? The mediator role of linking and leveraging," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 473-497, June.
    8. Yuan Li & Haowen Chen & Yi Liu & Mike Peng, 2014. "Managerial ties, organizational learning, and opportunity capture: A social capital perspective," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 271-291, March.
    9. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.
    10. Lee, Tingko, 2019. "Management ties and firm performance: Influence of family governance," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 105-118.
    11. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    12. Gang Wang & Xu Jiang & Chang-Hong Yuan & Ya-Qun Yi, 2013. "Managerial ties and firm performance in an emerging economy: Tests of the mediating and moderating effects," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 537-559, June.
    13. White, George O. & Hemphill, Thomas A. & Joplin, Janice R.W. & Marsh, Laurence A., 2014. "Wholly owned foreign subsidiary relation-based strategies in volatile environments," International Business Review, Elsevier, vol. 23(1), pages 303-312.
    14. Jianjun Yang & Huafang Liu & Shanxing Gao & Yuan Li, 2012. "Technological innovation of firms in China: Past, present, and future," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 819-840, September.
    15. Cheng, Louis T.W. & Leung, T.Y., 2016. "Government protection, political connection and management turnover in China," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 160-176.
    16. Liwen Wang & Jin Jason Lu & Kevin Zhou, 2023. "Technological Capability Strength/Asymmetry and Supply Chain Process Innovation: The Contingent Roles of Institutional Environments in China," Post-Print hal-03954124, HAL.
    17. Lu, Tingyu & Zhuang, Mengzhou & Zhuang, Guijun, 2021. "When does guanxi hurt interfirm cooperation? The moderating effects of institutional development and IT infrastructure capability," Journal of Business Research, Elsevier, vol. 125(C), pages 177-186.
    18. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    19. George O. White & Jean J. Boddewyn & Tazeeb Rajwani & Thomas A. Hemphill, 2018. "Regulator Vulnerabilities to Political Pressures and Political Tie Intensity: The Moderating Effects of Regulatory and Political Distance," Management International Review, Springer, vol. 58(5), pages 743-769, October.
    20. Ciravegna, Luciano & Majano, Sara B. & Zhan, Ge, 2014. "The inception of internationalization of small and medium enterprises: The role of activeness and networks," Journal of Business Research, Elsevier, vol. 67(6), pages 1081-1089.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijrema:v:26:y:2009:i:4:p:314-323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-research-in-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.