Unlocking market information use in small firms: exploring the nexus of market orientation, ownership and small firm market performance

Abstract

Purpose This paper investigates the intricate dynamics of market information use (MIU) in small firms. First, the influence of market orientation (MO) on MIU is examined. Then, the mediating roles of instrumental and symbolic uses of market information and the moderating role of firm ownership are scrutinized to connect small firms' MO to small firm market performance (SFMP).

Design/methodology/approach This study adopts the resource-based view (RBV) of the firm, follows a community-engaged action research approach and draws on primary and secondary data from a population of 150 small food and drink producers, of which 79 were usable, in the UK.

Findings This research dissects the contrasting impacts of instrumental and symbolic uses of market information on SFMP. Importantly, this study reveals that only instrumental MIU mediates the positive linkage between MO and SFMP, and that link is strengthened when firms are family-owned.

Originality/value This study contributes to a deeper understanding of the internal factors influencing market information dynamics in small firms and their subsequent impact on SFMP. It also extends theoretical understanding of how small firms’ unique resources, i.e. MIU, conditioned by ownership structure, drive performance in resource-constrained contexts.