Exploring Competitive Intelligence Effectiveness on SMEs Performance: The Meditating Influence of Entrepreneurial Orientation

Banji Rildwan Olaleye; Tochukwu Thankgod Nwosu; Joseph Nembo Lekunze; Tshediso Joseph Sekhampu; Folasade Funmi Olorunsola

doi:10.34021/ve.2024.07.03(2)

Authors

Banji Rildwan Olaleye North-West University Business School, Potchefstroom, South Africa Department of Business Administration, Federal University Oye-Ekiti, Nigeria https://orcid.org/0000-0001-6193-7479
Tochukwu Thankgod Nwosu Department of Business Management, Girne American University, North-Cyprus, Turkey https://orcid.org/0009-0009-9501-2568
Joseph Nembo Lekunze North-West University Business School, Potchefstroom, South Africa https://orcid.org/0000-0001-7917-4908
Tshediso Joseph Sekhampu North-West University Business School, Potchefstroom, South Africa https://orcid.org/0000-0001-7887-5585
Folasade Funmi Olorunsola Department of Accountancy, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria https://orcid.org/0009-0000-4144-6541

DOI:

https://doi.org/10.34021/ve.2024.07.03(2)

Keywords:

competitive intelligence, entrepreneurial orientation, PLS-SEM, SME performance

Abstract

The small and medium-sized enterprise (SME) sector is the backbone of the economies of most large countries, driving employment and economic growth. Competitive intelligence (CI) is a major concern for academics and practitioners, as it affects company strategy. In the current uncertain global climate, CI is crucial, as it fosters the development of new ideas and innovations. Given that more established companies typically hold this association, the overarching goal of this study was to explore how smaller companies' entrepreneurial drive interacts with their use of CI to boost performance, thereby adding to the existing body of knowledge. We obtained information from 504 small business owners or managers, and tested the suggested heuristic model via descriptive statistics and partial least squares structural equation modelling (PLS-SEM). The results indicated that entrepreneurial orientation (EO) plays a significant role in mediating the impact of CI on SMEs' performance. We confirmed that CI has a direct effect on SMEs' performance, as does the nexus between CI and EO. However, EO mediates this connection. On the basis of the results of this research, SME managers should maintain a thriving entrepreneurial mindset while developing novel strategic approaches to increase innovation and productivity. Furthermore, we provide valuable recommendations for future research, and we urge policymakers to launch entrepreneurship programmes to help SMEs develop an entrepreneurial drive and a conceptual model that positions EO as a strong indicator of CI and SME performance.

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References

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