Dynamic Interactions Between Competitive Intelligence Maturity, Absorptive Capacity and Competitive Advantage

Abstract

This paper aims at discussing the dynamic interactions and complex relationships between competitive intelligence maturity, absorptive capacity as a knowledge management process, to enhance a firm's competitive advantage. Competitive intelligence maturity is considered as an evolving process of information transformation into a strategic and valuable resource that is the basis of the competitive advantage generation. Moreover, absorptive capacity could optimize this process for better knowledge creation or knowledge management. Based on resource-based theory, dynamic capability theory and knowledge-based theory, we focus on prior literature streams such as competitive intelligence maturity, absorptive capacity and competitive advantage which could be interconnected through deductive and inductive research methodology. This iterative conceptualization approach led to the formation of testable propositions that could allow for a better understanding of the relationship between the three main streams, that in research, has been considered as independent themes for decades. This research proposes a framework that supports a dynamic relationship between competitive intelligence maturity levels and absorptive capacity dimensions to create and maintain the competitive advantage.