Exploratory Research Into Competitive Intelligence Practices of Small Local Businesses

Abstract

Small businesses are similar to larger businesses in that they should be able to gather information about their competitors, market, and customers. However, they also have unique circumstances (lack of resources, closer community connections, etc) that require different methods of acquiring that information. While previous studies have addressed the extent to which small enterprises conduct competitive intelligence (Groom & David 2001), and their perceptions on the practice itself (Tarraf & Molz 2006), there presently exists a gap in the literature on how small businesses tend to approach those competitive intelligence practices. To understand how local businesses gather data and information and utilize it to inform their business strategies and develop a competitive advantage, the study includes a case study approach with four well-established businesses, along with a survey of additional small businesses located in a town within the United States. It was found that these businesses generally conduct internal forms of data collection and, surprisingly, utilize suppliers/trade shows as important information sources, as well as nearby businesses within the same and different industries. The findings of this study may assist policymakers, local business support organizations, or business owners themselves in sustaining the longevity of small local businesses.