Outline of the Presentation Strategic Uncertainty, Competitive - PowerPoint PPT Presentation

Outline of the Presentation Strategic Uncertainty, Competitive Intelligence Practices and Firm Performance 1. Introduction 2. Review of the Literature 3. Research Hypotheses 4. Methods by 5. Results and Discussion Ching Seng Yap, Md Zabid Abdul Rashid, & Dewi Amat Sapuan 6. Implications and Conclusion 2 November 2013 @ 10.30 a.m. ICKM 2013: International Conference on 1 1 ICKM 2013: International Conference on 2 2 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 1

1. Introduction 1. Introduction, cont. o Businesses compete in an increasingly competitive o Definition of CI marketplace: n A method for identifying the intelligence requirement, n Globalisation; systematically collecting relevant information on n ICTs advancement; competitors, and processing the information into actionable knowledge (Jaworski & Wee, 1992). n Turbulent business environments. n Information about the present and future behaviour of o Emergence of competitive intelligence (CI) in competitors, suppliers, customers, technologies, business field as one of the management tools. government, market and general business environment o The roles of CI in strategic management. (Vedder & Guynes, 2000). o Best practitioners: Motorola, IBM, Xerox, Eastman Kodak, Lexis-Nexis, Procter & Gamble. ICKM 2013: International Conference on 3 3 ICKM 2013: International Conference on 4 4 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 2

1. Introduction, cont. 1. Introduction, cont. Problem Statement o Research Objectives o Businesses today face an increasingly competitive global § Identify the strategic role of competitive intelligence. n market; § Examine the links between strategic uncertainty and firm Most studies on CI are largely descriptive in nature n performance. (Saayman et al., 2008); § Examine the mediating effect of competitive intelligence Few academic studies have examined empirically the n practices on the relationship between strategic uncertainty relationship between the antecedents and consequences of and firm performance. CI (Attaway, 1999); The current evidence of the value and impact of CI is n anecdotal or consists of indirect assessment (McGonagle & Vella, 2002; Saayman et al., 2008). ICKM 2013: International Conference on 5 5 ICKM 2013: International Conference on 6 6 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 3

2. Review of the Literature 2. Review of the Literature, cont. o Descriptive Studies Theoretical Perspective o 1. Asia – China (Tao & Prescott, 2000, Japan (Sugasawa, 2004), 1. Contingency Theory – emphasises the best fit or match Korea (Kim & Kim, 2004), India (Adidam et al., 2012). between internal functions and organisational 2. Europe – UK (Wright et al., 2004), Russia (Ignatov, 2004), France (Salles, 2006), Germany (Michaeli, 2004), Spain environments in order to achieve outstanding performance (Millan & Comai, 2004), Sweden (Hedin, 2004), Finland (Burns & Stalker, 1961; Cyert & March, 1963; Lawrence (Hirvensalo, 2004; Pirttimäki, 2007), Greece (Priporas et al., & Lorsch, 1967; Thompson, 1967). 2005). 3. North America – USA (Prescott & Smith, 1989; Ghoshal & 2. Resource-based Theory – views resources such as Westney, 1991; Prescott & Bhardwaj, 1995; Vedder et al., distinctive competencies and dynamic capabilities which 1999; Lackman et al., 2000), Canada (Calof & Brouard, 2004). may yield sustainable competitive advantage and hence 4. Africa – South Africa (Muller, 1999; Du Toit, 2003; Viviers & superior performance for the organisation (Barney, 1991; Muller, 2004; Viviers et al., 2005). Peteraf, 1993; Wernerfelt, 1984). ICKM 2013: International Conference on 7 7 ICKM 2013: International Conference on 8 8 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 4

2. Review of the Literature, cont. 3. Research Hypotheses Empirical Studies H 1 : The greater the perceived strategic uncertainty, the higher o the level of competitive intelligence practices, specifically v Relationship between Strategic Uncertainty and CI the higher amount of competitive intelligence is acquired (Ebrahimi, 2000; Lozada & Calantone, 1996; McGee & and the greater extent of competitive intelligence is used in Sawyer, 2003). strategic decision making. v Relationship between CI and Firm Performance (Daft et H 2 : The higher the level of competitive intelligence al, 1988; Analoui & Karami, 2002; Zahra et al., 2002; practices, the higher the level of firm performance. Qiu, 2008). H 3 : Competitive intelligence positively mediates the relationship between perceived strategic uncertainty and firm performance. ICKM 2013: International Conference on 9 9 ICKM 2013: International Conference on 10 10 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 5

4. Methods 4. Methods, cont. Variables & Measurement Research Design o o 1. Strategic role of CI (Ghoshal & Westney, 1991; Prescott Cross-sectional study with organisation as the unit of n & Smith, 1989) analysis. Supporting strategic decision making; identifying early warning and Data Collection Method – Mail Questionnaire Survey. n n blind spots; performing industrial benchmarking; supporting strategic Population & Sampling Procedures o planning and implementation, supporting competitor assessment and tracking, and performing counterintelligence Population – All businesses with CI Practices in Malaysia. n Using 5-point importance scale . v Sampling Frame – All the companies listed on Bursa n 2. CI Practices Malaysia (Main Board, Second Board & MESDAQ). CI Acquisition (10 types of CI) (Aguilar, 1967; Choo, 1993). n A total of 900 companies, excluding subsidiary and holding n CI Use (on 11 strategic decisions) (Mintzberg et al., 1976; Hickson et n companies. al., 1986). Using 5-point importance and frequency scale. v ICKM 2013: International Conference on 11 11 ICKM 2013: International Conference on 12 12 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 6

4. Methods, cont. 4. Methods, cont. Variables & Measurement, cont. Data Analysis Techniques o o 3. Perceived Strategic Uncertainty (Duncan, 1972; Daft et Descriptive Analysis, Partial Least Square, and Linear n al., 1988) Regression Analysis. Strategic importance (5-point importance scale). Pilot Test n o Complexity (5-point high-low scale) n Conducted on 20 managers and executives. n Variability (5-point high-low scale) n To test the reliability of the instrument. n 4. Firm Performance (Govindarajan, 1984; Dess & To obtain preliminary outcome. n Robinson, 1984). 3 dimensions: Accounting, Market, Organisational Learning. n Using 5-point importance and performance scale. v ICKM 2013: International Conference on 13 13 ICKM 2013: International Conference on 14 14 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 7

5. Results and Discussion 5. Results and Discussion, cont. o Response Rate o Sample Characteristics (n=123) n Of 900 companies, 123 companies returned usable Table ¡1. ¡Sample ¡Characteristics ¡(n=123) ¡ ¡ Frequency ¡ Percentage ¡ questionnaires. Industry ¡ ¡ ¡ ¡ ¡Consumer ¡products ¡ 20 ¡ 16.3 ¡ n Response rate – 14%. ¡ ¡Industrial ¡products ¡ 16 ¡ 13.0 ¡ ¡ ¡Construction ¡ 11 ¡ 8.9 ¡ o Representativeness of the Sample ¡ ¡Trading/Services ¡ 24 ¡ 19.5 ¡ ¡ ¡Finance ¡ 15 ¡ 12.2 ¡ n Compare sample with population (Kerlinger & Lee, 2000). ¡ ¡Technology ¡ 10 ¡ 8.1 ¡ ¡ ¡Properties ¡ 13 ¡ 10.6 ¡ ¡ ¡Plantation ¡ ¡ ¡ 9 ¡ 7.3 ¡ n Differences range ±6% in industry sector. ¡ ¡Others ¡ 5 ¡ 4.1 ¡ Size ¡(No. ¡of ¡employee) ¡ ¡ ¡ o Nonresponse Bias ¡ ¡Below ¡200 ¡ 20 ¡ 16.3 ¡ ¡ ¡200 ¡– ¡499 ¡ 28 ¡ 22.7 ¡ n Wave analysis (Rogelberg & Stanton, 2007). ¡ ¡500 ¡– ¡999 ¡ 20 ¡ 16.3 ¡ ¡ ¡1,000 ¡– ¡2,999 ¡ 28 ¡ 22.7 ¡ ¡ ¡3,000 ¡and ¡above ¡ 27 ¡ 22.0 ¡ n No significant difference between early and late respondents. Position ¡ ¡ ¡ ¡ ¡CEO/MD ¡ 35 ¡ 28.5 ¡ ¡ ¡VP/GM/Director/COO ¡ 46 ¡ 37.4 ¡ ¡ ¡Departmental ¡manager ¡ 42 ¡ 34.1 ¡ ICKM 2013: International Conference on 15 15 ICKM 2013: International Conference on 16 16 Knowledge Management @ Montreal, Canada Knowledge Management @ Montreal, Canada 8