Do market information procedures improve venture performance?
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 6, Issue 11
Abstract
Some researchers claim that entrepreneurs do not need official procedure to collect and use market information; others suggest that the use of official market information procedure is positively connected to firm performance. In this paper, we create a theory that new venture performance is an increasing work of (1) the firm's level of customer interaction and (2) the use of official procedure for collecting and utilizing market information. We also create a theory that this link will be stronger among new ventures serving emergent markets .We test these hypotheses using data collected from 112 new ventures located in the West of Iran. Our findings show that, in any case of market condition, official procedure for the accumulation of market information are positively connected with the use of official procedure for market information employment and this relationship is stronger among firms serving recognized markets. In addition, new venture performance is positively connected with the use of official procedure for utilizing market information and this relationship is also stronger in recognized markets. We also find that, in emergent markets, new venture performance is a positive work of the use of official procedure for collecting market information. As opposed to expectations, we find that, in any case of market condition, the level of customer interaction has a negative relationship with the use of official procedure for market information employment and no important relationship with performance.
Authors and Affiliations
Fatemeh kahrarian| Department of management, Science and Research Branch, Islamic Azad University, Khouzestan, Iran University of chamran , university of Kurdistan, Fakhraddin maroofi| Department of management, Science and Research Branch, Islamic Azad University, Khouzestan, Iran University of chamran , university of Kurdistan, Faracholalah rahimi| Department of management, Science and Research Branch, Islamic Azad University, Khouzestan, Iran University of chamran , university of Kurdistan, email: rahimi2053@yahoo.com
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