Agricultural Economics and Development

Agricultural Economics and Development

The Effect of Managers’ Competitive Intelligence on Performance in Agricultural Processing Industries in Lorestan Province of Iran

Document Type : Original Article

Authors
Ahmad Yaghoubi Farani 1
khadijeh Godarzi 2
1 Ph.D., Associate Professor, Department of Agricultural Extension and Education, Faculty of Agriculture, Bu-Ali Sina University, Hamedan, Iran. Second Affiliation: Department of Agricultural Extension and Education, Faculty of Agriculture, University College of Agriculture & Natural Resources, University of Tehran, Karaj, Iran.
2 Msc in Agricultural Extension and Education. BU Ali Sina University, Hamedan
10.30490/aead.2024.357729.1417
Abstract
Introduction: In today's competitive business environment, gaining a competitive edge and achieving greater success compared to competitors is very important for business owners and enterprises. Managers are constantly seeking ways to identify the competitive environment and analyze the conditions of competitors and the market to achieve higher levels of performance. Among the effective strategies for enhancing the organization's capacity to more accurately analyze the conditions of competitors and the market situation, gain competitive advantage, new markets and emerging business opportunities, is the utilization of competitive intelligence. Competitive intelligence, as a process of receiving and analyzing information related to the external environment of the organization and the activities of competitors, suppliers, customers, new technologies, markets, products and services can influence the programs, decision-making and operations of the organization and significantly impact its performance and success. Over the past few decades, agricultural production units and the food industry have faced pressures from increasing population and food demand, climate changes, energy shortages, and the necessity to consider sustainability criteria. This situation has continually exposed them to variable and uncertain environmental conditions. This highlights the need to change policies and approaches of these units to better adapt to the competitive production and trade environment and changing environmental conditions using competitive intelligence tools and techniques. Among the agricultural production units, processing and supplementary industries play a crucial role in producing and processing diverse food products, improving the storage capacity of food, preventing agricultural production waste, increasing productivity and value added in agriculture, creating employment, and achieving food security. Therefore, they hold a strategic position in agricultural development. Considering the growing capacities in the food industry and processing units in the agricultural sector in Lorestan province of Iran, this study aimed at examining the competitive intelligence among managers of small-scale processing and supplementary agricultural units and as well as elucidating and analyzing how the competitive intelligence dimensions impact the performance of the mentioned units.
Materials and Methods: In this study, the dimensions of competitive intelligence among the managers of agricultural processing industries and their relationship with the performance of their businesses were examined. Thus, this study could be considered as descriptive-correlational research conducted through survey studies. The statistical population of the study included managers of active agricultural processing and supplementary industries in Lorestan province (201 people). Based on Cochran's sample size determination formula, 132 people were determined as the sample size, which was increased to 140 people for greater assurance. These managers were randomly selected as the research sample and surveyed for this study. The independent variables examined in this study were competitor intelligence, market intelligence, technological intelligence, organizational structural intelligence, and social-strategic intelligence.
Results and Discussion: The study results indicated that the managers had a relative understanding of each of competitive dimensions. The average score in all five dimensions of competitive intelligence was above average. If competitive intelligence was assumed to encompass information related to the status of competitors, customers, suppliers, technologies, environments, and potential business relations, the managers in this study could be considered as individuals with moderate to high levels of knowledge and information in areas related to competitors, technology, market, customers, and the social business environment. This level of competitive intelligence can aid them in proper evaluation and strategic decision-making, which is likely to improve business unit performance. The research model's evaluation showed that the model, including the five competitive intelligence dimensions (technological intelligence, market intelligence, competitor intelligence, social-strategic intelligence, and organizational structural intelligence), had relatively good overall fit, explaining 49 percent of the variance in the performance of the processing industries.
Conclusion and Suggestions: Based on the results of the research, it can be said that managers' intelligent understanding of market conditions and changes, and related variables such as customers, producers, and suppliers, play a key role in business success. Undoubtedly, unions and associations related to these enterprises can play a fundamental role in comprehensively enhancing the capacity and level of competitive intelligence among managers in the province, thus improving the quantitative and qualitative performance of these units. Training and empowering managers about the dimensions of competitive intelligence for entering scientific business management processes and understanding that gaining a competitive advantage is not just about understanding competitors and market conditions. It should also include awareness of social environment conditions and opportunities, the ability to innovate in both soft and hard technologies, creating efficient strategies, and exploiting opportunities for organizational structural renewal. These should always be a focus for managers, enabling them to gain valuable opportunities for competitive advantage, performance improvement, and market leadership.
Keywords
Competitive Intelligence
Competitors Intelligence
Market Intelligence
Performance
Agro-processing Industries

Subjects

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