Cross‐cultural competitive intelligence strategies

Abstract

PurposeCompetitive intelligence (CI) is a promising tool in the strategic planning arsenal of top managers. As companies expand globally, it is imperative that CI be conducted across national boundaries and cultures. The practice of CI in various international markets is clearly impacted by the cultural context of gathering and analyzing information. Therefore, one of the key ingredients to successfully conducting CI globally is the ability to understand the local culture and business practices, and then integrate this knowledge within contemporary CI strategies. This paper aims to address these issues.Design/methodology/approachThis study analyses CI practices in the developed markets of Europe and Japan, as well as the emerging markets of China, Russia, South Africa, Latin America, and the Middle East by using extant literature, primary as well as secondary sources.FindingsOwning to the complexity of cross‐cultural CI practices, often companies fail in their entry into foreign markets. This is due to misjudgment and poor understanding of the countries' cultural, social, and political environment. As cultural factors have a major influence on the collection, analysis and outcome of any CI project, firms doing international business must have a cross culturally aware CI program, which can be established with the help of a five‐step process as described in the paper.Research limitations/implicationsThis paper provides a snapshot of comparative CI practices from across the globe, and contrasts developed and emerging CI practices. This is a qualitative review‐based paper, and hence does not have any empirical corroboration. Most the understanding is gleaned from the extant literature as well as our in‐depth interviews with 12 CI consultants in various global markets.Practical implicationsGlobal managers need CI in order to succeed in foreign markets. Most of times, these managers use the same CI practices that are being used in their home markets. This paper provides a good approach through which they could develop a “cross‐culturally aware” CI program in their company.Originality/valueCultural factors play a major role in CI practices of firms across the globe. This research compares and contrasts CI practices in various cultures and markets, and provides some key guidelines and approaches for global managers in order to conduct successful CI in a variety of cultures. This research would be very valuable to global companies as it provides timely and practical solutions.