The impact of formal processes for market information acquisition and utilization on the performance of Chinese new ventures

We examine the impact on new venture success of formal processes for market information acquisition and use. We tested our model with a sample of 222 Chinese new ventures. We find that new venture success is positively related to the use of formal processes for market information acquisition and use. The relative importance of formal processes depends on whether the new venture serves an emerging or established market. The impact of formal processes for information acquisition is higher for emerging markets, while the impact of formal processes for information use is higher for established markets.