Annals of the University of Oradea: Economic Science (Jul 2015)
THE IMPACT OF THE EXTERNALITIES GENERATED BY COMPETITIVE INTELLIGENCE
Abstract
The goal of the paper named “The impact of the externalities generated by Competitive Intelligence” is to describe and understand how this activity works and behaves in a competitive environment, and what are the real cost of obtaining durable competitive advantages through a process such as Competitive Intelligence. This activity creates high added value on the market and the proper use of it can have a strong influence on increasing the competitiveness on the global economic environment and, therefore, increasing the efficiency inside those environments. On the other hand, externalities play a significant part in the economic welfare and, currently, in a globalized world, must be taken into consideration in order to obtain sustainable growth of the economy. As any other economic activity, Competitive Intelligence is also causing both positive and negative externalities. A thorough analysis of those externalities effects has to be made in order to understand how this process really works, and this paper aims to be the starting point of that analysis. Of course, further studies have to deepen each impact and obtain relevant results that will add up and draw more specific conclusions. This study’s conclusions, however, will reveal if this activity can work properly in every type of economy, regardless of its state of development. Since it represents a way to improve global competitiveness and, therefore, the market’s performance, the impact Competitive Intelligence is making on the whole economic system is a main parameter for establishing its real use. All in one, by being one of the most innovative ways to obtain competitive advantages through qualitative methods of analysis, the implementation of this process into the organizational culture of firms might change the way competitors choose to respond to one another’s actions. This research has taken into consideration both the macroeconomic and the microeconomic environment, using both empirical and theoretical items. Also, it was conducted in a qualitative manner, since the Competitive Intelligence process is made exclusively through qualitative analysis methods.
