The impact of market information use on entrepreneurial performance: insights from the UK food industry

Abstract

PurposeThis paper explores the nuanced relationship between individual and firm performance through the lens of market information use, in the specific context of small businesses, shedding light on the specificity of information use and impact of information use on both types of performance.Design/methodology/approachA mixture of subjective and objective data from a sample of small food producers engaged in an action research project with a major UK supermarket was used to test hypotheses developed from the information management, marketing and small business literature.FindingsThe results suggest that the effective use of market information has a significant impact on the performance of both the individual and the organization but independently of each other. The result provides evidence of the potential “disconnection” between individual and organizational levels of performance and the tension that exists in small businesses between operational and strategic decision-making and the use of market information therein.Research limitations/implicationsWhile the author's study benefits from access to individual decision-makers and objective organizational performance data, the study is not without its limitations. Chief among these is the small sample size. Moreover, while there are clear benefits to working with a homogeneous sample of small food producers supplying the same key customer in the same market, generalizing to small food businesses operating in other distributions channels and small businesses in other sectors is also difficult.Practical implicationsWhen analyzing the performance of marketing managers, owner-managers should pay attention to the incentives for them to invest time and effort in the effective use of market information as the disconnection between individual and firm performance can have negative implications for their personal development and the overall firm performance.Originality/valueThis study explores a missing link in the extant body of small business literature, i.e., the role played by key individuals with responsibility for the marketing function within small businesses and the relationship between small businesses' approach to the use of market information and performance at a functional level and the overall firm performance.