Principal Topic

A survey of the literature on information reveals gaps in the process of information acquisition and strategy use. The gaps are of a theoretical nature, due to the lack of a unifying conceptual framework for the process, and of a practical nature by the areas that require empirical research to further the understanding of the different steps in the registration of the information from the environment.

We propose a framework that attempts to shed light on this process. It links six steps in the entrepreneur’s information acquisition: sources of information, such as data, market signals and cues (1), information networks (2), information filters such as cognitive biases and the entrepreneur’s ability to absorb information (3) the small organization’s information treatment per se (4) and its input into strategic management (5). Also parts of the framework are informational boundary spanners and technological gatekeepers (6) who bypass the small organization’s usual contacts with the marketplace. Prevalent signals, cues and data are processed within the information treatment phase (4) by the entrepreneur’s and his organization’s sense making ability to provide acceptable constructs of reality by integrating the environment’s equivocality into knowledge creation and decision processes. This is the core concept of information acquisition and use as a source of entrepreneurial opportunity.

Method

We test the general validity of our model using a case study of 52 high growth SMEs located in Quebec. More specifically we try to fill one of the model’s empirical gaps, namely the registration process of information embedded in weak signals and market cues based on our observation of the organization of “high growth” SMEs. The process of perceiving an equivocal stimulus such as a cue or a weak signal, evaluating it, discussing it and coming to a resolution is the main focus of our research.

Results and Implications

Weak signals and market cues are sources of real time information that the entrepreneurial organization can use on a day-to-day basis. Reinforced by strong signals from personal and business networks in a complex organization and transformed into information by an experienced and communicative management, they shape perceptions of the environment, help uncover opportunities and provide essential inputs into organizational sense making through a double loop process. This improvisation is a necessary ingredient for systematic organizational adaptation and change. This brings forth the question of how small organizations learn about their environment using networks with strong and weak ties to overcome inherent resource limitations.

CONTACT: Ivan P. Vaghely, Université du Québec à Trois Rivières, Institut de recherche sur les PME, 3351 boul. Des Forges, C.P. 500, Trois Rivières (Québec), G9A 5H7, Canada; (T) 819- 376-5011 x 4026; (F) 819-376-5138; vaghely.ivan@uqam.ca