This study investigates competitive intelligence (CI)-related practices in companies, including process, scope and organizational structure. As these aspects have not been sufficiently discussed in the literature, the study objective is to determine (1) the type of CI process being employed, (2) whether the CI scope is limited to competitor analysis or spans a broader business environment and (3) whether the CI process and scope vary depending on organizational CI.
An interview was conducted at two types of Japanese companies: one established a CI department to implement CI, whereas the other did not establish a CI department and conducted CI in an ad hoc manner. Multicase studies were performed to examine companies with different organizational structures.
The CI scopes included a broad range of factors (e.g. technology, customers, markets, suppliers, economy, society, politics, legislation and regulation), and not only competitor analysis. An established CI department did not guarantee a well-organized CI process. Furthermore, the lack of such a department did not preclude systematic CI processes or activities.
The authors classified the CI in the companies the authors inspected as either systematic (organized CI) or ad hoc (unorganized CI) methods. The advantages and disadvantages of both are discussed. The authors found the promotion mechanisms in company-wide CI process, which can cause intelligence transfers from CI to absorptive capacity processes.
