Competitive Intelligence Practices and Firm Performance

Ching Seng Yap 1  and Md Zabid Abdul Rashid 2
  • 1 Assistant Professor, Graduate School of Business, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia
  • 2 Professor, and President & Vice Chancellor, Universiti Tun Abdul Razak, Kuala Lumpur, Malaysia


This study examines the level of competitive intelligence practices undertaken by Malaysian publiclisted companies, and the relationship between competitive intelligence and firm performance. Data was collected from 123 companies across various industry categories. The study finds that competitive intelligence has been practiced at an early stage and in a moderate level among Malaysian companies. The top three intelligence sectors rated by the sampled companies are customers, competitors and the economy. Competitive intelligence is mostly used in making strategic decisions regarding capacity expansion, new product development, and strategic alliance. Competitive intelligence practice relates positively to firm performance. Companies with a formal versus informal competitive intelligence unit achieve higher firm performance as measured by organizational growth and profitability. The article includes implications and recommendations for future studies.

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