PurposeThis study focuses on the use of information sources by contractually-integrated retail entrepreneurs. The research question is as follows: how can the use of information sources by contractually-integrated retail entrepreneurs be classified using the dimensions of "external/internal" and "formal/informal"? In addition to analyzing the use of information sources, this study sheds light on the relation between the information sources used by retail entrepreneurs and retail entrepreneurs' effectiveness. Design/methodology/approach An Internet survey study was conducted among K-retailers from K-alliance. K-retailers are independent retail entrepreneurs who own and manage their retail businesses, and who invest considerable personal and financial resources in these enterprises. The total number of questionnaires sent out was 1170. Of these, 226 were satisfactorily completed for use in the analysis.
FindingsThe study reveals that the majority of contractually-integrated K-retailers rely on external information sources when making decision at the store level. Internal information sources are used by only a small minority of K-retailers. In addition, the use of formal information sources seems more likely to increase the level of sales than does the use of informal sources.
Research limitations/implicationsWith regard to future research avenues, there is a need for a more comprehensive framework that takes into account the contextual factors and the structural characteristics of retailing organizations. In addition, the perceived reliability of information sources should be considered in assessing the use of various information sources.
Practical implicationsThis study contends that the effectiveness of the contractually-integrated retail entrepreneurs is related to individual retailers' ability to take advantage of formal information sources.
Originality/valueThis study provides a new point of view regarding perspective on the use of information sources by contractually-integrated retail entrepreneurs. This study also illustrates the relation between the use of information sources and retail entrepreneurs' effectiveness.