The role of structural capital on competitive intelligence
| DOI | https://doi.org/10.1108/02635570910930136 |
| Published date | 13 March 2009 |
| Pages | 262-280 |
| Date | 13 March 2009 |
| Author | Abouzar Zangoueinezhad,Asghar Moshabaki |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
The role of structural capital
on competitive intelligence
Abouzar Zangoueinezhad and Asghar Moshabaki
Faculty of Economics and Management,
Tarbiat Modares University of Iran, Tehran, Iran
Abstract
Purpose – This paper aims to explore the role of structural-organizational capital (or intelligence) in
gathering, producing and transmitting competitive intelligence (CI) to enhance organization
competitive advantage.
Design/methodology/approach – A questionnaire-oriented survey covering 200 Iranian
companies as samples was conducted to collect data for the study.
Findings – The findings indicate that the information systems (as the structural capital) and the
content factors (as the organizational capital) of the structural-organizational intelligence (SOI) are
significantly related in attaining CI. The study also provides empirical evidence that attaining CI is
positively related to organization competitive advantage.
Research limitations/implications – First, the companies chosen for the study were mainly large
companies. Thus, the results may not be applicable to smaller companies; second, this survey was
limited to one country (Iran); third, 40 percent of the respondents were from state companies, which
because of using state budget and being active at the monopolistic markets inside the country might
be a negative effect on the amount of using SOI.
Practical implications – Future studies might be extended to analyzing the relationship among
other factors of intellectual capital and CI and should seek to utilize multiple respondents from
multinational companies to enhance the research findings.
Originality/value – The paper provides some of the very first insights into development of
structural capital concept and its effects on organization. Previous studies were independent of
structural-organizational capital (intelligence). This study aims to fill that gap by studying
downstream impact of SOI application on both the admission of CI information and organization
competitive advantage.
Keywords Competitive advantage, Intelligence,Iran
Paper type Research paper
Introduction
In recent years, competitive intelligence (CI) has become significant in management
discipline and strategic management. The goal of CI is to combine, develop and present a
comprehensive perspective to attain persistent competitive advantage (Bose, 2008;
Khalifa et al., 2008). CI is not just a market research (Bose, 2008; Pelsmacker et al., 2005)
or business scanning, rather it is a process of knowing what the competition is up to and
saying one step ahead of them, by gathering information about competitors and, ideally,
applying it to short and long-term strategic planning (Wright et al., 2002; Dishman and
Pearson, 2003; Jourdan et al., 2008). In fact, CI as a strategic business tool has long been
proposed in an effort to increase a company’s competitiveness (Pelsmacker et al., 2005).
One of the newest sources of competitive advantage is the structural-organizational
intelligence (SOI), which in this study we use it synonymously for structural-organizational
capital. Structural-organizational capital includes all non-human reserves of knowledge in
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
IMDS
109,2
262
Received 16 May 2008
Revised 22 August 2008
Accepted 7 October 2008
Industrial Management & Data
Systems
Vol. 109 No. 2, 2009
pp. 262-280
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570910930136
the organization embracing databases, organizational charts, executive instructions of the
processes, strategies, administrative programs, and suchlike items whose significance for
the organization is higher than its material value (Roos et al., 1997). According to Roos and
Roos (1997) and Roos et al. (1997), it takes account of organizational capital like intellectual
capital, creativity and innovation, processes, and cultural capital, renewal capital,
development like patent right, and educational efforts. Chen et al. (2004) believe that
structural-organizational capital aims at the system, structures, and the current procedures
of the business of an establishment. In the other words, the structural-organizational capital
can be classified as organizational culture, organizational learning, operating processes,
and information systems.
SOI (capital), as flexible information infrastructures and efficient inter-organizational
communications tool, has transformed the way that firms gather, produce and transmit
CI. SOI provides obstacle to competitors to go through market, operational linkage,
business process improvement (e-business) such as e-selling, revenue increasing, cost
decreasing, and quality promotion (Maja, 2001). The notion of the intelligence
organization is fashionable today, and an interest here is to postulate a set of
characteristics as a metaphor that can be used to identify the nature of the intelligent
organization within behavioral and related decision-making contexts (Yolles, 2005).
As a CI resource, SOI is an internal, inter-industry and international cooperation
communications tool and it also shortcuts the production cycle and increases
organization capacity (Dyk and Conradie, 2007). Firms are able to draw on SOI to attain
knowledge of customer preferences through interactive organizational information
systems (Paiva and Goncalo, 2008; Lee and Chang, 2007). Strategic information systems
reveal information that facilitates continuous forecast of sales, resulting in competitive
advantage in terms of better production planning and less inventory stockpiles (Maja
and Zabkar, 2001). It allows manufacturer to improve supplier selection and learn about
competitors’ process technologies (Korany, 2007). Top management is also able to access
critical external knowledge, market research and economic trends to allow more
effective strategic planning (Baars and Kemper, 2008).
Although there are an expanding number of studies concerning the use of strategic
information systems (that is SOI) for CI activities, none have addressed its
organizational impact in an empirical study. In the area of CI research, several
empirical studies have explored the relationship between usage of CI and corporate
performance (Mei and Nie, 2008; Feng and Chen, 2007). However, the conducted studies
were independent of strategic information systems (that is SOI usage) (Trim, 2004;
Li et al., 2008; Wee, 2001).
This study aims to fill that gap by studying downstream impact of SOI usage on
both CI and organization competitive advantage. Specifically, this research seeks to
examine the relationship between SOI usage and the admission of CI information as
well as the relationship between admission of CI information through SOI and
organization competitive advantage. The results provide some insights on the impact
of SOI on the admission of CI information and its subsequent impact on organization
competitive advantage.
Discussion and exploration
One of the major features in present period is ever-increasing alterations of mankind
knowledge in various arenas, such as, social, economical, industrial, political, and
The role of
structural capital
263
To continue reading
Request your trial