The impact of competitive intelligence and IS support in changing small business organizations

Abstract

The voluminous body of literature on the management of change, including sub‐areas such as Business Process Reengineering (BPR), Total Quality Management (TQM), and product improvement, implicitly or explicitly propose that company strategic intelligence is a pre‐requisite for change, and that effective information systems (IS) support is a critical requirement for implementing change. While these two hypotheses are exceedingly important, the existing literature contains no empirical evidence supporting them. A field test of how effectively small business organizations are identifying strategic problems and opportunities, how effectively they implement business changes, and use IS technology to do so, was undertaken to empirically test their relationships. Despite the relatively small sample size, the results provide clear evidence about the importance of competitive intelligence and IS support for effectively implementing change in small business organizations. The items used for measuring the main constructs provide further insights into how managers should go about acquiring competitive intelligence and managing IS technology to effectively support business improvements.