Social media analytics, competitive intelligence, and dynamic capabilities in manufacturing SMEs

Abstract

Dynamic capability is an emerging field for firms facing a turbulent environment. Previous studies highlight that firms with little dynamic capabilities to enhance organizational performance face many survival challenges. This study proposes how small and medium enterprises (SMEs) can enhance their dynamic capabilities through learning mechanisms such as social media analytics and competitive intelligence processes that include the planning, collection, analysis, and dissemination of information. Specifically, this study focuses on the effects of social media analytics on four phases of competitive intelligence to improve the dynamic capabilities within manufacturing SMEs. Social media analytics are better used in certain large companies but less acknowledged in SMEs. However, limited empirical studies have used the dynamic capabilities approach and examined the causal links between social media analytics and competitive intelligence processes. A survey was conducted among 140 manufacturing SMEs in Quebec to obtain a better understanding of this relationship. Accordingly, a closed-structured questionnaire was distributed to the SMEs’ chief executive officers and managers. The data collected were analyzed using structural equation modeling. Our research findings show that social media analytics positively affect four phases of competitive intelligence, especially the phases of collection and analysis.