THE IMPACT OF COMPETITIVE INTELLIGENCE (CI) MANAGEMENT ON THE COMPETITIVENESS AND PERFORMANCE OF RETAIL COMPANIES IN INDONESIA

  • Marwan Jafar University of Selangor, Bestari Jaya, MALAYSIA

Abstract

The main purpose of the present research is to come up with a CI management model which is culturally sensitive and adaptive to the Indonesia setting. As it has been seen from the previous studies that CI management has assisted several organization, industries and companies to improve their level of performances and competitiveness, it is also logical to conclude that, it could do same for the local retail companies in Indonesia so that, they could compete adequately and effectively with the international retail companies. The research method used in the research is a qualitative case study (case-study) method in the field of economics, especially business management discipline. This method is used with the underlying assumption that decision makers in retail company management make rational choice in implementing competitive intelligence. The retail industries in Jakarta basically have considered various aspects of the implementation of Competitive Intelligence (CI) that includes marketing intelligence, technological intelligence, strategic intelligence and social intelligence. These four elements of CI have been recognized and managed by retailer, but its executing of the all aspect of CI tends to be minimal optimization. For instance, this research also found the strong validity of these four aspects of CI, namely marketing intelligence, technological intelligence, strategic intelligence and social intelligence have significantly affected the retail’s competitiveness and performance. This indicates that there is an increase of needs of the management of retail companies in Jakarta to improve the competitiveness and performance of the company. The conclusion of this research show that his competitiveness of companies is an important aspect of business development, it has generally been sufficiently taken into consideration by retail companies. But still requires careful attention by management. The study of the aspects measured turned out to have some validity as follows: Competitive Intelligence affects Competitiveness 0,55 and Performance 0,92, and Competitiveness affects Performance 0,79. This indicates that the most major retails in Jakarta have a high level of confidence on the Competitive Intelligence to improve its competitiveness and performance management. Also, an examination of the performance, as indicated by factors such as gross profit margin, net profit margin, ROI, ROA and ROE are fully affected by the company's ability to understand Competitive Intelligence. And interestingly, too, the order of the validity of research results to the performance competitiveness is not very significant, especially in the retail research at Indonesia. Although other factors that exist in competitiveness has not been fully studied, only limited to the fifth power of Porter's competitiveness. Competitive Intelligence significantly affects the competitiveness and performance of the retail industries, and it is shows indirect impact on corporate performance through competitiveness. Both of Competitive Intelligence and Competitiveness show little significant impact on the retail’s performance. However, the competitiveness shows a significant impact on the retail’s performance.

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Published
2020-12-29
How to Cite
JAFAR, Marwan. THE IMPACT OF COMPETITIVE INTELLIGENCE (CI) MANAGEMENT ON THE COMPETITIVENESS AND PERFORMANCE OF RETAIL COMPANIES IN INDONESIA. Journal of Social Science Advanced Research, [S.l.], v. 1, n. 2, p. 138-159, dec. 2020. ISSN 2735-1874. Available at: <https://myjms.mohe.gov.my/index.php/jossar/article/view/11782>. Date accessed: 15 june 2025.
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Articles