Competitive intelligence as a factor of the innovation capability in Mexican companies: A structural equations modeling approach
Keywords:
Competitive intelligence, innovation capability, structural equations modelingAbstract
In today's world markets, where rivalry is increasingly intense, companies face
pressure to deliver better results in a shorter time. The continual technological change produces
more efficient equipment, processes and products, new business relationships due to emerging
and unexpected substitute products, as well as changing consumer preferences. In this
constantly changing environment, companies need useful information to develop strategies,
make decisions and implement them throughout the organization to increase their
competitiveness and market share. This is not easy or straightforward, it begins at the
company's strategy level and ends with the creation, development, and deployment of the
technological capabilities necessary to provide agile and flexible responses to customers, market
situations, and technological changes. The innovation capability of companies plays an
important role, as it is a critical strength, technology-based and strategic in nature, with the
purpose of creating and developing new products and improved processes. This is a continuous
source of competitive advantage, and a necessary element for companies that operate in highly
competitive environments and under growing rivalry, in order to improve technological
innovations and developments. This information is essential for decision-making and one way
to generate it is through methodologies, among which competitive intelligence stands out. This
article presents an investigation using a structural equation modeling methodology to evaluate
the relationships between competitive intelligence and innovation capability of Mexican
companies. The empirical results show that competitive intelligence has an important indirect
impact on three main functions of innovation capability: creation of new concepts, innovation
and technological development, and development/improvement of ideas for products, processes,
and equipment. The indirect effect is through knowledge management as a mediating factor.
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