Abstract
Marketing strategy begins with customer and competitive intelligence. However, in sharp contrast to customer intelligence, there is little research on how competitive intelligence (CI) is actually generated within an organization. The absence of this knowledge makes it difficult to identify ways to improve the CI generation process. Drawing on both depth interviews with full-time personnel who conduct competitive intelligence and academic literature in related fields, the authors derive a novel conceptual framework that describes three interdependent phases of the competitive intelligence generation process: (1) organizing for competitive intelligence, (2) searching for information, and (3) sense-making. Dimensions of efficacy at each phase are also identified, and they are posited to be influenced by factors pertaining to: (1) the intelligence network, (2) the business environment, (3) the information environment, and (4) analyst characteristics. This framework departs from the existing literature by identifying core components of the competitive intelligence generation process, highlighting its iterative nature, and identifying variables germane to its success. The emergent framework's implications for managing the competitive intelligence generation process are discussed and future research directions are suggested.
Similar content being viewed by others
References
Aguilar, Francis (1967), Scanning the Business Environment, New York: MacMillian.
Alba, Joseph W., and Hutchinson, Wesley (1987), “Dimensions of Consumer Expertise,” Journal of Consumer Research, vol. 12, March, pp. 411–54.
Argyris, Chris (1977), “Organizational Learning and Management Information Systems,” Accounting, Organizations and Society, vol. 2, pp. 113–23.
Bettman, James R. (1979), An Information Processing Theory of Consumer Choice. Reading, MA: Addison-Wesley Publishing Co.
Brass, D. J. (1984), “Being at the Right Place: A Structural Analysis of Individual Influence in an Organization,” Administrative Science Quarterly, vol. 29, pp. 518–39.
Brucks, Merrie (1985), “The Effects of Product Class Knowledge on Information Search Behavior,” Journal of Consumer Research, vol. 12, June, pp. 1–16.
Chi, Harry, L., Glaser, Robert, and Rees, Ernest (1982), “Expertise in Problem Solving,” In Robert J. Sternberg (ed.), Advances in the Psychology of Human Intelligence, vol. 1, Hillsdale, NJ: Lawrence Erlbaum, pp. 7–75.
—, Spillach, George J., and Voss, James F. (1979), “Acquisition of Domain-Related Knowledge,” Journal of Verbal Learning and Verbal Behavior, vol. 18, June, pp. 257–73.
Colmenares, Don (1992), “Managing the Intelligence Operation,” Proceedings of the 8th Annual International Conference. Society of Competitive Intelligence Professionals.
Crocker, Jennifer (1981), “Judgment of Covariation by Social Perceivers,” Psychological Bulletin, vol. 90, pp. 272–92.
Culnan, Mary J. (1983), “Environmental Scanning: The Effects of Task Complexity and Source Credibility on Information Gathering Behavior,” Decision Sciences, vol. 14, pp. 194–206.
Cyert, Richard, and March, James (1963), Organizations, New York: Wiley.
Daft, Richard L., and Weick, Karl E. (1984), “Toward and Model of Organizations as Interpretive Systems,” Academy of Management Review, vol. 9, pp. 284–95.
Day, George (1990), Market-Driven Strategy, New York: The Free Press.
— (1991), “Learning About Markets,” Marketing Science Institute Report #91–117, Cambridge, MA: Marketing Science Institute.
—, and Nedungadi, Prakesh (1994), “Managerial Representations of Competitive Advantage,” Journal of Marketing, vol. 58, April, pp. 31–44.
Deshpande, Rohit, and Zaltman, Gerald (1982), “Factors Affecting the Use of Market Research Information: A Path Analysis,” Journal of Marketing Research, vol. 19, February, pp. 14–31.
Dickson, Peter R. (1992), “Toward a General Theory of Competitive Rationality,” Journal of Marketing, vol. 56, January, pp. 69–83.
—, Urbany, Joel, and Lehmann, Donald (1994), Competitive Decision Making, Charleston, South Carolina Conference.
Dion, K. L., Baron, R. S., and Miller, N. (1970), “Why Do Groups Make Riskier Decisions Than Individuals?” In Leonard Berkowitz (ed.), Advances in Experimental Social Psychology, vol. 5, New York: Academic Press.
Drumwright, Minette (1994), “Socially Responsible Organizational Buying: Environmental Concern as a Noneconomic Buying Criterion,” Journal of Marketing, vol. 58, July, pp. 1–19.
Eisenhardt, Kathleen M. (1989), “Building Theories From Case Study Research,” Academy of Management Review, vol. 14, no. 4, pp. 532–50.
—, and King, William (1977), “Environmental Scanning for Corporate Planning,” Business Horizons, August, pp. 61–71.
Fahey, Liam, King, William and Narayanan, Vadake K. (1981), “Environmental Scanning and Forecasting in Strategic Planning,” Long Range Planning, vol. 14, February, pp. 32–9.
Fiske, Susan T., Kinder, D. R., and Larter, W. M. (1983), “The Novice and the Expert: Knowledge-Based Strategies in Political Cognition,” Journal of Experimental Social Psychology, vol. 19, pp. 381–400.
—, and Taylor, Shelley E. (1984), Social Cognition. Reading, MA: Addison-Wesley.
Frazier, Gary, and Summers, John O. (1984), “Interfirm Influence Strategies and Their Application within Distribution Channels,” Journal of Marketing, vol. 48, Summer, pp. 43–56.
Frenzen, Jonathan, and Nakamoto, Kent (1993), “Structure, Motivation and the Flow of Market Information,” Journal of Consumer Research, vol. 20, September, pp. 360–75.
Fuld, Leonard (1991), “A Recipe for Business Intelligence Success,” The Journal of Business Strategy, January-February, pp. 12–7.
Gelb, Betsy D., Saxton, Mary Jane, Zinkhan, George M., et al. (1991), “Competitive Intelligence: Insights from Executives,” Business Horizons, January-February, pp. 43–7.
Ghoshal, Sumantra, and Westney, D. Eleanor (1991), “Organizing Competitor Analysis Systems,” Strategic Management Journal, vol. 12, pp. 17–31.
Glaser, Barney, and Strauss, Anselm (1967), The Discovery of Grounded Theory. Chicago: Aldine.
Granovetter, M. (1973), “The Strength of Weak Ties,” American Journal of Sociology, vol. 6, pp. 1360–80.
— (1982), “The Strength of Weak Ties: A Network of Theory Revisited,” In P. V. Marsden and N. Lin (eds.), Social Structure and Network Analysis, Beverly Hills, CA: Sage, pp. 105–30.
Herring, Jan P. (1990), “Senior Management Must Champion Business Intelligence Programs,” The Journal of Business Strategy, September-October, pp. 48–52.
Jain, Subhash (1984), “Environmental Scanning in U.S. Corporations,” Long Range Planning, vol. 17, April, pp. 117–28.
Jaworski, Bernard J., and Kohli, Ajay K. (1993), “Market Orientation: Antecedents and Consequences,” Journal of Marketing, vol. 57, July, pp. 53–70.
Kahaner, Larry (1997), Competitive Intelligence, New York: New York: Touchstone.
Keegan, Warren J. (1974), “Multinational Scanning: A Study of the Information Sources Utilized by Headquarter Executives in Multinational Companies,” Administrative Science Quarterly, vol. 19, pp. 411–21.
Kefalas, A., and Schoderbeck, P. P. (1973), “Scanning the Business Environment: Some Empirical Results,” Decision Sciences, vol. 4, pp. 63–74.
Kohli, Ajay K., and Jaworski, Bernard J. (1990), “Market Orientation: The Construct, Research Propositions, and Managerial Implications,” Journal of Marketing, vol. 54, April, pp. 1–18.
Kotler, Philip (1994), Marketing Management, Englewood Cliffs, NJ: Prentice Hall.
Kotter, John P. (1982), The General Managers. New York: Free Press.
Lenz, R. T., and Engledow, J. L. (1986), “Environmental Analysis Units and Strategic Decision Making: A Field Study of Selected ‘Leading Edge’ Corporations,” Strategic Management Journal, vol. 7, pp. 69–89.
Levitt, Barbara, and March, James G. (1988), “Organizational Learning”, Annual Review of Sociology, vol. 14, pp. 319–40.
Marsden, V. P. (1990), “Network Data and Measurement,” Annual Review of Sociology, vol. 15, pp. 435–63.
Menon, Anil, and Varadarajan, P. Rajan (1992), “A Model of Marketing Knowledge Use Within Firms,” Journal of Marketing, vol. 56, October, pp. 53–71.
Moorman, Christine, Zaltman, Gerald, and Deshpande, Rohit (1992), “Relationships Between Providers and Users of Market Research: The Dynamics of Trust Within and Between Organizations,” Journal of Marketing Research, vol. 29, August, pp. 314–28.
Narver, John C., and Slater, Stanley F. (1990), “The Effect of a Market Orientation on Business Profitability,” Journal of Marketing, vol. 54, October, pp. 20–35.
Porter, Michael (1980), Competitive Strategy. New York: Free Press.
Prescott, John E., and Smith, Daniel C. (1990), “A Framework for the Design and Implementation of Competitive Intelligence Systems,” In Charles C. Snot (ed.), Strategy, Organization Design and Human Resource Management, Greenwich, CT: JAI Press.
Punj, Girish N., and Staelin, Richard (1983), “A Model of Consumer Information Search Behavior for New Automobiles,” Journal of Consumer Research, vol. 9, March, pp. 366–80.
Smith, Edward E., and Medin, Douglas L. (1981), Categories and Concepts. Cambridge, MA: Harvard University Press.
Strauss, Anselm, and Corbin, Juliet (1990), Basics of Qualitative Research. Newbury Park, CA: Sage Publications.
Stubbart, Charles (1982), “Are Environmental Scanning Units Effective?” Long Range Planning, vol. 15, June, pp. 139–45.
Thomas, Philip S. (1980), “Environment Scanning: The State of the Art,” Long Range Planning, vol. 13, February, pp. 20–25.
Thomas, James B., and McDaniel, R. R., Jr. (1990), “Interpreting Strategic Issues: Effects of Strategy and the Information-Processing Structure of Top Management Teams,” Academy of Management Journal, vol. 33, pp. 286–306.
Voss, James F., Vesonder, Gregg T., and Spillach, George J. (1980), “Text Generation and Recall by High-Knowledge and Low Knowledge Individuals,” Journal of Verbal Learning and Verbal Behavior, vol. 19, December, pp. 651–67.
Wilensky, H. L. (1967), Organizational Intelligence, New York: Basic Books.
Zeithaml, Valarie, Berry, Leonard, and Parasuraman, A. (1988), “Communication and Control Processes in the Delivery of Service Quality,” Journal of Marketing, vol. 52, April, pp. 35–48.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Jaworski, B.J., Macinnis, D.J. & Kohli, A.K. Generating Competitive Intelligence in Organizations. Journal of Market-Focused Management 5, 279–307 (2002). https://doi.org/10.1023/B:JMFM.0000008071.19917.36
Issue Date:
DOI: https://doi.org/10.1023/B:JMFM.0000008071.19917.36