Competitive Intelligence Embeddedness: Drivers and Performance Consequences

We define competitive intelligence (CI) embedded as a capability. Different types of Web-based information sources impact CI embeddedness. CI embeddedness is also influenced by different information uses. CI embeddedness impacts firms' performance through customer satisfaction. The proliferation of Web-based information sources and social media draw firms' attention to these channels as sources of competitive intelligence (CI). To date, research has focused mainly on information collection techniques rather than on CI uses and its influence on firm performance. We define CI embeddedness as the extent to which management and employees incorporate CI in daily routines, so that actionable knowledge is transferred throughout the organization. A survey of 124 decision makers reveals positive impact of Web CI sources as well as alliances with information providers on CI embeddedness. Furthermore, while CI embeddedness shows no direct influence on firms’ performance, it has a mediated effect on performance through customer satisfaction.