An Empirically-based Model of Competitor Intelligence Use

Abstract Top managers of industrial wholesale organizations ( N =172) were surveyed to identify factors associated with implementation of competitor intelligence (CI) activity. Results of multivariate analysis generally supported a hypothesized model of CI linking environmental and organizational characteristics and perceptions of CI to level of CI activity. Level of competition was positively related to CI use, while the number of competitors was associated with lower use of CI. External diversity (number of clients) was positively associated with CI, while internal diversity (number of products) was associated with lower CI. There was a complex set of curvilinear relationships between organizational resources and use of CI; organization size exhibited an inverted U-shaped relationship, while marketing intensity exhibited a standard U-shaped relationship. Managers' positive perceptions of CI value and accessibility were associated with greater use of CI. Greater availability of CI information and greater allocation of organizational resources to CI activity were associated with greater use of information obtained through CI. Several factors had both direct and indirect relationships with CI use.

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