Competitive intelligence as a factor of the innovation capability in Mexican companies: A structural equations modeling approach


  • Eduardo Rafael Poblano-Ojinaga


Competitive intelligence, innovation capability, structural equations modeling


In today's world markets, where rivalry is increasingly intense, companies facepressure to deliver better results in a shorter time. The continual technological change producesmore efficient equipment, processes and products, new business relationships due to emergingand unexpected substitute products, as well as changing consumer preferences. In thisconstantly changing environment, companies need useful information to develop strategies,make decisions and implement them throughout the organization to increase theircompetitiveness and market share. This is not easy or straightforward, it begins at thecompany's strategy level and ends with the creation, development, and deployment of thetechnological capabilities necessary to provide agile and flexible responses to customers, marketsituations, and technological changes. The innovation capability of companies plays animportant role, as it is a critical strength, technology-based and strategic in nature, with thepurpose of creating and developing new products and improved processes. This is a continuoussource of competitive advantage, and a necessary element for companies that operate in highlycompetitive environments and under growing rivalry, in order to improve technologicalinnovations and developments. This information is essential for decision-making and one wayto generate it is through methodologies, among which competitive intelligence stands out. Thisarticle presents an investigation using a structural equation modeling methodology to evaluatethe relationships between competitive intelligence and innovation capability of Mexicancompanies. The empirical results show that competitive intelligence has an important indirectimpact on three main functions of innovation capability: creation of new concepts, innovationand 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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