Organizational Market Information Processes: Cultural Antecedents and New Product Outcomes

Abstract

Organizational research suggests that the way information is used is likely to be a function of the presence of organizational systems or processes, in addition to individual manager activities. The author suggests that firms vary their emphasis on certain organizational market information processes, such as information acquisition, information transmission, conceptual use of information, and instrumental use of information. The author argues that the emphasis is determined, in part, by the congruence, or fit, among an organization's cultural norms and values and theorizes that the presence of these organizational information processes affects new product outcomes. Survey results indicate that clans dominate the other cultures in predicting organizational market information processes, suggesting that information processes are fundamentally “people processes” that involve commitment and trust among organizational members. The results have important implications for balancing internal and external orientations within firms. The results also indicate that the information utilization processes, especially those that are conceptual in nature, are strong predictors of new product performance, timeliness, and creativity, indicating that competitive advantage is tied to information utilization activities in firms.