Competitive intelligence practices in Japanese companies: multicase studies
| DOI | https://doi.org/10.1108/AJIM-05-2021-0133 |
| Published date | 21 January 2022 |
| Date | 21 January 2022 |
| Pages | 631-649 |
| Subject Matter | Library & information science,Information behaviour & retrieval,Information & knowledge management,Information management & governance,Information management |
| Author | Ichiro Tsuchimoto,Yuya Kajikawa |
Competitive intelligence practices
in Japanese companies:
multicase studies
Ichiro Tsuchimoto
Graduate School of Innovation Management, School of Environment and Society,
Tokyo Institute of Technology, Tokyo, Japan and
Plastic Waste Management Institute, Tokyo, Japan, and
Yuya Kajikawa
School of Environment and Society, Tokyo Institute of Technology, Tokyo, Japan
Abstract
Purpose –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.
Design/methodology/approach –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.
Findings –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.
Originality/value –The authors classified the CI in the companiesthe 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.
Keywords Competitive intelligence, Decision-making, Absorptive capacity
Paper type Research paper
1. Introduction
Competitive intelligence (CI) is a crucial function that enhances corporate information
analysis and supports accurate decision-making in intensely competitive, and increasingly
uncertain, business environments. A comprehensive framework on CI was provided by
Bergeron and Hiller (2002). It included terminology and definitions, the evolution of CI, the CI
process, analytical techniques, CI systems, key actors in CI, CI organization and
implementation, CI et hics and CI education an d training. As CI has increa sed in
importance, it has seen increased research interest and industry adoption. It has been
implemented in sports (van den Berg et al., 2020), health care (Freyn and Farley, 2020),
universities (Garcia-Alsina et al., 2013,2016) and small and medium enterprises (Cai and Jia,
2010). It has especially grown in foreign direct investment activities (Tao, 2010).
Competitive
intelligence
practices
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This study was conducted as a part of the project “Empirical Analysis of Innovation Ecosystems in
Advancement of the internet of Things (IoT),”which was undertaken at the Research Institute of
Economy, Trade and Industry (RIETI). The authors would like to express their gratitude to Yukio
Sugasawa of the Japan Society of CI for introducing the companies to be surveyed. This research
receives no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
The authors declare that there is no conflict of interest.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/2050-3806.htm
Received 9 May 2021
Revised 22 August 2021
Accepted 18 December 2021
Aslib Journal of Information
Management
Vol. 74 No. 4, 2022
pp. 631-649
© Emerald Publishing Limited
2050-3806
DOI 10.1108/AJIM-05-2021-0133
Some CI methodologies are patent analysis (Yoon and Kim, 2011;Wang et al., 2014;Zhang
et al., 2014;Yan and Luo, 2017;Sandal et al., 2017;Milanez et al.,2017), patent overlay mapping
(Kay et al., 2014) and a company’s position mapping via social media analysis (He et al., 2013;
Kim et al., 2016). Furthermore, colink analyses of companies are useful for CI information
collection (Vaughan et al., 2006).
Effectiveness of CI depends not only on infometric methodology, but also on the CI process
and organizational issue. While IT tools are vital in the CI process, person-focused
communication, in combination with CI tools, is required for enhanced decision-making
(Marin and Poulter, 2004;Zheng et al., 2012;Donohue and Murphy, 2016). CI will remain
relevant and valued in an artificial intelligence (AI)-enabled world (Hoffman and Freyn, 2019).
CI tools support knowledge sharing among employees, both horizontally and vertically
(Almeida et al., 2016). Moreover, organizational decision models and CI tools enhance
knowledge workers’intelligences and insights, but implicit and explicit information (e.g.
patent) must be included (Heinrichs and Lim, 2005).
The organizational position of CI department becomes an important research topic.
Researchers have looked at whether to establish a CI department and how it would relate to
other divisions. According to Bergeron and Hiller (2002), 66% of large American companies
in the USA conduct formal CI activities. Calof (2017) surveyed Canadian CI practitioners and
found that 61% of Canadian companies have a formal centralized CI department. Small and
medium companies, however, conduct CI without a formal CI department (Priporas, 2019;
Koseoglu et al., 2019;Calof, 2020). Yap and Rashid (2011a,b) found that over half of listed
Malaysian companies have a formal CI department. They also found that those companies
were, relative to other companies, significantly more profitable and grew more. Jin and Ju
(2014) confirmed the importance of a corporate library and information center for CI experts.
Wang et al. (2010) studied the relationship between CI and the outsourcing of information
gathering in China. They concluded that outsourcing information gathering to external
organizations is an effective method for CI.
On the other hand, a few researchers studied the factors that interfere with an organization
effectively utilizing its CI results. Powell and Bradford (2000) identified that conflicts occur
between business units and the CI department over the handling of CI results because
business units often evaluate the results. Pirttila (1998), in a case study of a multinational
corporation, noted the harmful tendency of the professional CI department to ignore actual
work methods followed at the workplace (i.e. in business departments). Analysis of these
interfering factors is necessary to explore different ways to ensure effective use of CI results.
Other studies elaborated on the effective use of CI results. Organizational culture has a
significant, positive affect on CI (Asghari et al., 2020), and environmental and organizational
characteristics affect CI effort, which, in turn, affects CI use (Salguero et al., 2019). Further,
synergy of knowledge management and CI results is important in effective decision-making
(Shujahat et al., 2017;Chandan, 2017).
2. Literature review
The definition of CI entails different interpretations and utilities depending on the audience
(Lopes-Robles et al., 2020), and CI processes used in organizations and their effectiveness
remain unclear. Many companies conduct CI without realizing what activities are CI (Dinu,
2018). A typical CI process is a cycle composed of planning and direction, information
collection, analysis and production and dissemination (Herring, 2001), although other
representations of the CI process components exist as well (Bergeron and Hiller, 2002;Bose,
2008;Saayman et al., 2008;Heppes and du Toit, 2009;Isberg, 2010;Strauss and Du Toit, 2010).
According to Bernhardt (1994), nonpublic information collected by human intelligence during
the CI process is vital to its result, whereas public information comprises up to 80% of all
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