Market Information Scanning Activities and New Venture Success: A Comparison of New Service and Manufacturing Companies
(with Michael P. Peter)
Recent technological developments create the need for new ventures to monitor the market environment. The various techniques used to acquire market information differ depending on the venture but are related to the ultimate success of the new venture. This exploratory research investigates market information scanning practices in a sample of 120 new ventures. Types, methods, and sources of market information are compared in service and manufacturing ventures, and relationships between these practices and growth are assessed. Results of X2 tests show selective differences between service and manufacturers as a whole and when growth is considered. Multiple regression analysis showed manufacturers experiencing growth acquired information about competitors' sales and market share and depended on personal contacts and networks. Scanning activities were not highly related to growth in service firms.