The Role of Market Embeddedness in Market Scanning and Marketing Competence

Abstract

This study uses the social network paradigm to examine how small business network relationships influence the flow of local business information, and whether the ability to obtain relevant, timely and accurate information leads to increased levels of marketing competence. One hundred nineteen retail store owners were surveyed to look at the role of network relationships in market scanning. The study found that retailers who had strong network relationships characterized by high levels of social capital perceived information from these networks to be more relevant, accurate and timely. Although marketing competence was related to performance, obtaining quality information about the market did not lead to the development of distinctive capabilities. More attention to networking and market research skills may help small retailers create and sustain a competitive advantage.