The proliferation of Web-based information sources and social media draw firms' attention to these channels as sources of competitive intelligence (CI). To date, research has focused mainly on information collection techniques rather than on CI uses and its influence on firm performance. We define CI embeddedness as the extent to which management and employees incorporate CI in daily routines, so that actionable knowledge is transferred throughout the organization. A survey of 124 decision makers reveals positive impact of Web CI sources as well as alliances with information providers on CI embeddedness. Furthermore, while CI embeddedness shows no direct influence on firms' performance, it has a mediated effect on performance through customer satisfaction.

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

Dynamic capabilities are central to firms' strategic decision-making and have received increasing attention in recent years due, in part, to the development of the information society. This research explores how web-based and human information sources interact and advance the development of dynamic capabilities. We use a mixed-methods approach executed in two studies. Study 1 reports insights gleaned from in-depth interviews with 12 senior managers. Study 2 provides the findings from a survey completed by 139 senior managers. The analysis indicates that the use of web-based and human information sources facilitates all dynamic capabilities types – sensing, seizing, and reconfiguring. Furthermore, sensing mediates the effects of the information sources on seizing and reconfiguring. This research highlights the strategic potential of using business information sources to advance dynamic capabilities while differentiating between the most commonly used information sources and inspecting their individual and synergistic effects on the advancement of dynamic capabilities.

No abstract