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Abstract

The purpose of this study is to test relationship between entrepreneur’s proactivity and effectiveness of market information use to address the question of why some entrepreneurs use market information better than others. Results of our conceptual model, tested on SMEs from the United States and Slovenia, indicate that entrepreneurs who are more proactive are more responsive to new information than others; which has a positive influence on SMEs innovation performance, product innovation in specifics. Implications for practitioners and future research avenues are discussed.

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