Strategic management model with lens of knowledge management and competitive intelligence. A review approach
| Published date | 13 February 2017 |
| DOI | https://doi.org/10.1108/VJIKMS-06-2016-0035 |
| Date | 13 February 2017 |
| Pages | 55-93 |
| Author | Muhammad Shujahat,Saddam Hussain,Sammar Javed,Muhammad Imran Malik,Ramayah Thurasamy,Junaid Ali |
| Subject Matter | Information & knowledge management,Knowledge management,Knowledge management systems |
Strategic management model with
lens of knowledge management
and competitive intelligence
A review approach
Muhammad Shujahat and Saddam Hussain
Department of Management Sciences,
COMSATS Institute of Information Technology, Attock, Pakistan
Sammar Javed
University of Hudderseld Business School, Hudderseld, UK
Muhammad Imran Malik
Department of Management Sciences,
COMSATS Institute of Information Technology, Attock, Pakistan
Ramayah Thurasamy
School of Management, Universiti Sains Malaysia, Minden, Malaysia, and
Junaid Ali
Department of Management Sciences,
COMSATS Institute of Information Technology, Attock, Pakistan
Abstract
Purpose –The purpose of this study is primarily to discuss the synergic and separate use of knowledge and
intelligence, via knowledge management and competitive intelligence, in each stage of strategic management
process. Next, this paper aims to discuss the implications of each stage of strategic management process for
knowledge management and competitive intelligence and vice versa.
Design/methodology/approach –A systematic literature review was performed within time frame of
2000-2016. Extracted information from reviewed studies was synthesized and integrated in strategic
management model of Fred David.
Findings –A strategic management model with lens of knowledge management and competitive
intelligence is proposed. Each stage of knowledge management process has implications for knowledge
management and competitive intelligence and vice versa. In addition, synergic and separate use of
knowledge and intelligence results in effective decision-making, leading to competitive advantage.
Research limitations/implications –Learning curve of knowledge management and competitive
intelligence and being limited to the use of Fred David model are among the many key limitations.
Practical implications –Experts of knowledge management, competitive intelligence and strategic
management can use this study to gain competitive advantage based on knowledge and information
resources. Organizations should have knowledge management function and competitive intelligence to
support the strategy formulation, implementation and evaluation.
Social implications –Readers can take a view for how they can manage their knowledge and information
resources from a strategic perspective.
Originality/value –This study proposes a strategic management model with lens of knowledge
management and competitive intelligence. The model discusses ways for synergic and separate use of
knowledge and intelligence in each stage of strategic management, leading to competitive advantage. In
The current issue and full text archive of this journal is available on Emerald Insight at:
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Strategic
management
model
55
Received 21 June 2016
Revised 29 September 2016
Accepted 17 October 2016
VINEJournal of Information and
KnowledgeManagement Systems
Vol.47 No. 1, 2017
pp.55-93
©Emerald Publishing Limited
2059-5891
DOI 10.1108/VJIKMS-06-2016-0035
addition, it discusses the holistic and integrated implications of knowledge management and competitive
intelligence for each stage of strategic management process and vice versa.
Keywords Strategy, Competitive advantage, Strategic planning, Knowledge management,
Strategic management, Competitive intelligence
Paper type Literature review
Introduction
The dynamic, turbulent and complex business environment has compelled the present-day
organizations to use the accurate information and knowledge of their internal and external
environments in making strategic, operational and tactical decisions. Decision made through
this way can result in competitive advantage based on information and knowledge
resources. This is why the twenty-rst century is called “Knowledge Century” or
“Knowledge Era”. In this context of knowledge era, Peter Drucker, the father of management
theory, has rightly described that neither capital nor human, not even the natural resources,
will be the means of production. Instead it is and will be the knowledge. In addition, Grant
(1996) presented the theory of knowledge-based view of rms. This theory contends that
knowledge is the most strategic source of organization for competitive edge, because it
cannot be imitated easily. It also states that a rm that uses its knowledge assets more
effectively would outperform those who do not do so.
Thus, knowledge is considered to be a source of competitive advantage for an
organization. Business is managed and competitive advantage is gained through a process
called strategic management. One of the models of strategic management process
or strategic management is Fred David’s model. According to Fred David’s strategic model,
strategic management process comprises three stages, namely, strategy formulation,
strategy implementation and strategy evaluation (Figure 1). It drives all the activities of an
organization. Strategy formulation, also familiar as strategic planning, involves the
following steps: development of vision and mission statements, audit of internal and external
environment, long-term objectives and generation, evaluation and selection of strategies
(David, 2007).
The second stage of the strategic management process is commonly known as strategy
implementation. In this stage, business strategy is actually implemented. It involves
activities such as establishing annual objectives, devising policies for each business
function, allocating resources, etc. for achievement of organizational objectives (David,
2007).
The nal stage of the strategic management process is strategy evaluation. This stage is
aimed at changing or taking corrective actions in strategy and measuring and evaluating the
performance. To achieve these purposes, it involves updating key internal and external
evaluation matrices continuously, formed in strategic planning stage, and identication of
other internal and external factors emerged. In addition, it involves comparing actual
performance with planned. If key internal and external factors change during the continuous
assessment of environments or new factors are identied, and/ or during comparison of
standard performance with actual performance, actual performance is found less than the
standard performance. Then, this calls for corrective actions to be taken in this stage of the
strategic management process (David, 2007).
As cited above that purpose of the strategic management process/management is to gain
competitive advantage, strategic management achieves this purpose by formulation of an
effective business strategy. This business strategy, in turn, is dependent on internal and
external environments of an organization. Related to the concept of external environment of
an organization, strategic management literature often discusses a concept called
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competitive intelligence. Comprehensively called competitive intelligence, it is an ethical and
systematic process, program and function of gathering, analyzing and managing
information about the external environment (Nasri and Zarai, 2013). This information can be
used for making decisions at any level, leading to competitive advantage (Weiss, 2002;Bose,
2008;Nasri, 2012;Nasri and Zarai, 2013). External environment is composed of opportunities
and threats (David, 2007). Competitive intelligence manages the information of external
environment and is proactive in nature. So, it can be used to assess the current and potential
external environment, as well as threats and opportunities (Bartes, 2015a,2015b;
Tanascovici and Hagiu, 2013;Taib et al., 2008;Nasri, 2012;Momeni et al., 2012;Ghannay and
Zeineb, 2012;Weiss, 2002).
Related to concept of internal environment of an organization, there is a concept referred
to as knowledge management in literature. Comprehensively, knowledge management is a
process, cycle and discipline of knowledge acquisition, knowledge creation, knowledge
sharing and knowledge application. This knowledge via knowledge management can be
used to make effective decisions at any level. These effective decisions provide competitive
edge based on knowledge (Momeni et al., 2012;Ghannay and Zeineb, 2012). It is evident that
knowledge management improves the predictability in state of uncertainty (Carneiro, 2000;
Muthusamy, 2008). But, it is comparatively less proactive than the competitive intelligence
and manages and has focus on internal knowledge mainly (Momeni et al., 2012;Ghannay and
Zeineb, 2012;Taib et al. 2008). This argument helps to reach the conclusion that knowledge
management can be used to assess current and potential internal environment of an
organization. As internal environment is mainly composed of strengths and weaknesses,
Strategy Strategy Strategy
formulation implementation evaluation
Long term objecves Generaon,
selecon, and
evaluaon of
strategies
Strategy
Implementaon
Measure & evaluate
Performance
Developing or
updang vision &
mission statements
Assessment of
internal environment
Assessment of
internal environment
Source: Adopted from David (2007)
Figure 1.
Fred David strategic
management model
57
Strategic
management
model
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