The effect of competitive intelligence (CI) on the organisational performance of the institutions of higher learning in Malaysia : moderated by organisational factors

Abstract

ABSTRACT

Competitive Intelligence (CI) plays an essential role in enhancing the performance of Malaysian Institutions of Higher Learning (IHLs) by providing strategic insights that support effective decision-making. These insights are essential for developing organisational strategies and plans that foster high performance. Both profit-driven and non-profit organisations, including academic institutions, utilize CI to achieve sustainable profitability, financial self-sufficiency, competitive advantage, and improved overall performance. By equipping institutions with a clear understanding of the competitive landscape, CI promotes adaptability and ensures strategic alignment with evolving market demands and organizational objectives. Malaysian IHLs face significant challenges, including curriculum misalignment with industry needs, low research quality, insufficient funding, financial instability, and difficulties in achieving internationalisation. CI addresses these issues by enabling benchmarking against global standards, refining institutional strategies, and improving decision-making processes. Despite its potential, the effective adoption of CI is often constrained by outdated methodologies, inadequate data collection and analysis processes, and organisational barriers such as culture, structure, and limited awareness. This study examines the impact of CI on the organisational performance of Malaysian IHLs, with organisational factors serving as moderating variables. The theoretical foundation of this research is rooted in resource-based theory and knowledge-based theory. Data was collected from a sample of 92 respondents across 594 identified Malaysian IHLs. The findings indicate a significant positive relationship between CI and the organizational performance of IHLs, even in the absence of supportive organisational factors, namely process, structure, awareness, and culture. The findings emphasised the role of CI in generating distinctive resources that enhance institutional performance. This study contributes to the extension of resource-based and knowledge-based theories by exploring the influence of CI on the organisational performance of IHLs. Furthermore, it provides practical guidelines for Malaysian IHLs to identify and improve their performance indicators, ultimately fostering a more competitive and sustainable higher education sector.