This paper seeks to show that information acquired by owners of small firms from certain sources helps the firms to be competitive.
Data for this study were collected by mail from small business owners in three rural counties in West Texas.
Knowledge acquired by owners of small firms from colleagues, salespeople, trade publication family members, seminars, and social contacts is significantly associated with perceived competitiveness. Only three of these sources – colleagues, family members and seminars, have a positive effect on perceived competitiveness. The results suggest the importance of tacit and explicit knowledge for decision making and provide a framework for knowledge acquisition in small firms.
The data for this study were collected from a few rural counties in Texas, more research is required to enhance the generalization of the findings of this study. Future research is to extend this study should examine specific knowledge components associated with marketing effectiveness that are acquired from seminars, family members, and colleagues by small business owners.
The practical implications for this study include the need for small business owners to increase their knowledge acquisition efforts especially from sources such as colleagues, family members and seminars if they want to be competitive.
This study clearly extends the understanding regarding the importance of tacit knowledge as a source of a firm's competitiveness.
