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?
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.
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.
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.
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.
