Competitive intelligence and firm's performance in emerging markets: an exploratory study in India

Abstract

Purpose -This paper aims to explore the impact of competitive intelligence (CI) practices on the firm's performance in the emerging market context of India. The paper seeks to answer the following questions: do CI activities have an impact on the market performance of Indian firms? If so, what are the macro and micro environmental drivers of CI for Indian firms? How are CI activities organized within Indian firms? How is the usage and dissemination of CI taking place within Indian firms? Design/methodology/approach -The study used a stratified sample developed from a variety of mailing lists focusing on Indian firms. The study employed a cross-sectional, survey-based methodology. Findings -The study identifies two key aspects: Indian firms that exhibit higher levels of CI activities indeed achieve better financial performance results; and the current level of CI activities in Indian firms is at a moderate level, thereby suggesting an opportunity for using and implementing more sophisticated CI techniques. Practical implications -The findings of this study should assist local and foreign managers in having a more informed understanding of CI activities in the Indian marketplace. Additionally, these findings provide directives to managers regarding the untapped opportunities and potential that CI can offer in a highly volatile and rapidly changing market scenario. Originality/value -This is the first study that empirically investigates the relationship between the level of CI activities and firm performance in an emerging market context. It is also the first study of its kind that explores the current state of CI practices in the Indian market.

Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

“…An interesting result found by Adidam et al (2012) [1] who stated that Indian firms which exhibit higher level of competitive intelligent activities achieve better financial performance than the moderate or lower level, thereby suggesting an opportunity for performing more sophisticated competitive intelligent techniques.…”

The practice turn within strategy: Competitive intelligence as integrating practice

“…Competitive intelligence has evolved from being traditionally associated with knowledge management and market research (Adidam, Banerjee & Shukla 2012:243;Pellissier & Kruger 2011) to a more generalised discipline that focuses on gathering and analysing intelligence necessary for strategic planning (Adidam et al 2012:243;Porter 1985). It has furthermore attracted interest for its commercial application as well as its importance as an academic field (Adidam et al 2012;Calof & Wright 2008).…”

Competitive Intelligence Location in Small and Medium-Sized Enterprises

“…In order for competitive intelligence to be effective, it must be correctly located within the enterprise (Adidam, Banerjee & Shukla, 2012). There has been disagreement on where competitive intelligence should be located within the enterprise.…”

“…To adapt and survive in this kind of business environment, enterprises must implement competitive intelligence (CI) (Adidam, Banerjee & Shukla, 2012). CI produces actionable intelligence that provides help in decision-making and provides competitive advantage to enterprises (Ponis & Christou, 2013).…”