Competitive intelligence: a research model tested on Portuguese firms

Abstract

PurposeThe aim of this paper is to evaluate the practices of economic intelligence used by Portuguese firms and to identify the attributes that may increase the probability of their adoption.Design/methodology/approachA questionnaire was designed and addressed to the CEOs of Portuguese firms. The authors used the mixed logit method to select a number of significant variables that influence the use of economic intelligence by firms in the sample.FindingsFrom the results, the authors concluded that firm size, information and environmental scanning connected to the markets, social networks, economic diplomacy and public policies, namely clusters and industrial policies in the context of competitive intelligence, were some of the attributes relevant in this study. It is concluded that the probability of firms adopting competitive intelligence practices lies in two spheres: in orientations of business policy and strategy and in public policies that improve business context in the perspective of competitive intelligence.Research limitations/implicationsThe different categories of attributes that explain the existence of economic intelligence practices are relatively limited when compared with studies made outside Portugal. This derives from specific factors tied to Portuguese entrepreneurial culture.Originality/valueThis paper contributes to the literature on this area of research. One of the innovations introduced here was the design of a conceptual model proposal integrating business and public policy approaches connected to the competitive intelligence and, consequently, the capacity to formulate entrepreneurial strategies and public policies geared for the adoption of competitive intelligence procedures.

Towards a universal definition of competitive intelligence

“…• An activity of the strategic management of information that aims to allow decision-makers to forestall the market trends and moves of competitors, identify and evaluate threats and opportunities that emerge in the business environment, and circumscribe actions of attack or defence that are more appropriate to the development strategy of the enterprise. (Magrinho, Franco & Silva 2011).…”

The impact of firm size on competitive intelligence activities

“…Franco et al (2011), in their examination of CI activities among Portuguese firms, arrived at a similar conclusion:…”

A Comparison of Theory and Practice in Market Intelligence Gathering for Australian Micro-Businesses and SMEs

“…The term market intelligence is used to describe the holistic collection of internal and external business environmental data, by a business, that is to be used to make decisions on the viability of the current business market (Franco et al 2011). This definition is also reflected in Calof and Wright's (2008) definition of Competitive intelligence "...involves the collection of information, internal, external and from competitors, but also from customers, suppliers, technologies, environments, and potential business competitors, customer and governments" thus demonstrating the confusion within the academic environment on the definition of terms.…”

“…There were many phrases that were used interchangably within the literature to describe the process of 'market intelligence', these included business intelligence, competitive intelligence, environmental scanning, economic intelligence, territorial intelligence and market research (Franco et al 2011, Chen 2010, Kahaner 1998and Bose 2008.…”