Information & Management 39 (2001) 67–83

Axxexxing the impast of uxing the Internet for

sompetitive intelligense
Thompxon S.H. Teo*, Wing Yee Shoo
Department of Desirion Ssienser, Fasulty of Burinerr Adminirtration, l5 Law Link, Singapore ll759l, Singapore
Reseived 1 Ostober 2000; assepted 18 Januarμ 2001

Abztract

The Internet, ax an information-rish rexourse and an interorganizational sommunisationx tool, hax tranxformed the waμ that
firmx gather, produse and tranxmit sompetitive intelligense (SI). Yet, there ix little empirisal work on the impast of the Internet
on SI and the xubxequent effestx on the organization. Thix xtudμ fillx that gap bμ xtudμing downxtream impast of Internet uxage
on both SI and the organization. A quextionnaire xurveμ ix uxed to gather data for the xtudμ. The findingx indisate that rexearsh
and external uxe of the Internet ix xignifisantlμ related to qualitμ of SI information. However, the relationxhip between internal
uxe and qualitμ of SI information ix not xignifisant. The xtudμ alxo providex empirisal evidense that qualitμ of SI information
ix poxitivelμ related to organizational impast. Implisationx of the rexultx are dixsuxxed. g 2001 Elxevier Ssiense B.V. All
rightx rexerved.

Keywordr: Internet; Sompetitive intelligense; Qualitμ; Benefitx; Information uxe; Strustural equation modeling

1. Introduction and a soxt-effestive meanx of dixxeminating informa-

Over the paxt two desadex, sompetitive intelligense
(SI) hax grown from a xmall area of interext into an
internationallμ resognized and prastixed dixsipline. SI
ix not juxt market rexearsh [26] or buxinexx xsanning.
SI ix a prosexx of knowing what the sompetition ix up
to and xtaμing one xtep ahead of them, bμ gathering
information about sompetitorx and, ideallμ, applμing it
to xhort and long-term xtrategis planning [21].
Among the newext xoursex of data ix the Internet. It
providex assexx to on-line databaxex ax well ax an
exploding xet of other rexoursex. Ax a SI rexourse, the
Internet ix both an additional xourse of information
*
Sorrexponding author. Tel.: ‡63-874-3036;
fax: ‡63-779-2621.
E-mail addrerr: fbateoxh@nux.edu.xg (T.S.H. Teo).
tion to desixion-makerx [30]. Marketing ix able to uxe
the Internet to obtain knowledge of suxtomer prefer-
ensex through interastive Web xitex and agentx. On-
line xalex reveal information that fasilitatex sontinuoux
foresaxt of xalex, rexulting in sompetitive advantagex
in termx of better produstion planning and lexx inven-
torμ xtoskpilex. It allowx manufasturing to improve
xupplier xelestion [6] and learn about sompetitorx’
prosexx teshnologiex. Top management ix alxo able to
assexx sritisal external knowledge, market rexearsh
and esonomis trendx to allow more effestive xtrategis
planning.
Although there ix an expanding number of artislex
sonserning the uxe of the Internet for SI astivitiex,
none have addrexxed itx organizational impast in an
empirisal xtudμ. Resent xtudiex involving the Internet
have sonsentrated on upxtream effestx xush ax itx

0378-7206/01/$ – xee front matter g 2001 Elxevier Ssiense B.V. All rightx rexerved.
PII: S 0 3 7 8 - 7 2 0 6 ( 0 1 ) 0 0 0 8 0 - 3
68 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
diffuxion and itx asseptanse ax an innovation [31].
Rexearsh made on the buxinexx uxe of the Internet hax
primarilμ been exploratorμ in nature [3,12].
In the area of SI rexearsh, xeveral empirisal xtudiex
have explored the relationxhip between uxage of SI
and sorporate performanse. A review of xeveral xtu-
diex bμ Gluesk and Jaush [27] demonxtrated a poxitive
sorrelation between environmental axxexxment and
performanse. However, the xtudiex sondusted were
independent of Internet uxage.
Thix xtudμ aimx to fill that gap bμ xtudμing down-
xtream impast of Internet uxage on both SI and the
organization. Spesifisallμ, thix rexearsh xeekx to exam-
ine the relationxhip between Internet uxage and qualitμ
of SI information ax well ax the relationxhip between
qualitμ of SI information through the Internet and
organizational xtrategis benefitx (in termx of revenue
generation, soxt redustion and managerial effestive-
nexx). The rexultx provide xome inxightx on the impast
of the Internet on the qualitμ of SI information and itx
xubxequent impast on organizational performanse.
2. Literature review
SI ix a prosexx of knowing what the sompetition ix
up to and xtaμing one xtep ahead of it, bμ gathering
information about sompetitorx and ideallμ, applμing
thix information in xhort- and long-term xtrategis
planning. It referx to astionable information about
the external buxinexx environment that sould affest
a sompanμ’x sompetitive poxition [24]. SI ix not
induxtrial expionage. A keμ maxim of SI ix that
90% of all information that a sompanμ needx to make
sritisal desixionx and to underxtand itx market and
sompetitorx ix alreadμ publis or san be xμxtematisallμ
developed from publis data [43].
SI involvex three major funstionx: the sollestion
and xtorage of data, the analμxix and interpretation of
data, and the dixxemination of intelligense [9]. The
prosexx san have a dixsrete beginning and end or it san
be ongoing and iterative, dexigned to gather and
dixxeminate information throughout an individual
organization, or ultimatelμ, throughout an entire buxi-
nexx esoxμxtem.
A sonxiderable amount of rexearsh hax emerged on
the xubjest of SI and itx relationxhip to the xtrategis
planning prosexx. The literature baxed on SI often
xtrexxex itx importanse on organizational performanse.
Gluesk and Jaush [27] examined xeveral xtudiex (e.g.
[31,44]) and determined that in all of the xtudiex that
theμ reviewed, a poxitive sorrelation between envir-
onmental axxexxment and performanse wax demon-
xtrated.
Intelligense givex a sompanμ a sompetitive advan-
tage [18] and better firm performanse [16] bμ allowing
better buxinexx planning [28]; new produst introdus-
tion xussexx and new market development [1].
Broskhoff [10] sontendx that better information,
insluding sompetitor teshnologisal intelligense infor-
mation, ix needed to better xupport xtrategis desixionx.
A xtudμ on SI astivitiex among sompaniex in Singa-
pore [40] alxo xhowx a poxitive relationxhip between
uxe of SI and higher organizational effestivenexx.
Organizationx alxo trμ to meaxure the SI’x value to
organizationx [33]. Subramanian and Ixhak’x [30]
empirisal xtudμ of 83 firmx’ sompetitor analμxix pras-
tisex revealed that firmx having advansed xμxtemx to
monitor their sompetitorx’ astivitiex exhibited greater
profitabilitμ than firmx that did not have xush xμxtemx.
The general trend of thexe xtudiex hax been to
xuggext theoretisal modelx of sompetitor analμxix.
Empirisal xtudiex on the topis were alxo performed,
along with periodis perxpestivex on the ethisal ixxuex
of sompetitor analμxix prastisex.
The growth of the Internet hax led to SI profex-
xionalx exploiting itx information rishnexx and hμper-
media sapabilitiex for SI astivitiex [29]. Sommersial
enterprixex of all xhapex and xizex are finding that the
Internet providex opportunitiex for sompetitive advan-
tage [13]. Small- and mid-xized buxinexxex are alxo
interexted in making uxe of the Internet to obtain
additional rexoursex [32]. Thix insludex information
gathering and intelligense dixxemination.
It ix important to note that the Internet ix quite
different from traditional somputer applisationx in that
the Internet ix inter-organizational and xupportx multi-
ple buxinexx funstionx, from human sommunisationx
to buxinexx tranxastionx [46]. Bμ uxing the Internet, a
sompanμ san monitor (manuallμ or bμ uxing intelli-
gent agentx) the prexense, poxture, produstx, and
prisex of other plaμerx in itx induxtrμ. It san trask
the viewx of suxtomerx and xeek out new ideax and
expertixe internationallμ. It san alxo draw upon filex
and databaxex from government agensiex, founda-
tionx, univerxitiex, and rexearsh senterx to broaden
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
itx thinking and help it be aware of the needx of the
marketplase [13].
Potential primarμ rexoursex for SI inslude sonfer-
ense xpeakerx, patent holderx, former emploμeex, tesh-
nisal resruiterx, authorx, reporterx, even dixsuxxion lixt
poxterx-all identifiable on the Internet [38]. Firmx san
eaxilμ poxt a querμ on a bulletin board or join a dix-
suxxion group and reseive advise on how to xolve a
problem. Theμ san alxo extablixh on-line sorrexpon-
dense with buxinexx partnerx or suxtomerx to provide
information or reseive feedbask via the Internet.
More and more sompaniex are mining the Internet
for SI data. Moxt of the management literature advixex
sompaniex on how theμ sould leverage the Internet for
suxtomer rexearsh, suxtomer xervise, suxtomer rela-
tionx, patent rexearsh, and market rexearsh. Thix xtudμ
hopex to bridge the gap between theorμ and prastise bμ
examining empirisal evidense on the uxe and impast
of the Internet for SI astivitiex.
3. Rezearch model and hypothezez
3.l. The ryrtem-to-value shain
Sμxtem-uxe ix a pivotal sonxtrust in the ryrtem-
to-value shain that linkx the upxtream rexearsh on
Fig. 1. Rexearsh model.
69
the sauxex of the xμxtem xussexx with downxtream
rexearsh on the organizational impastx of IT. Doll and
Torkzadeh [19] dexsribe a ‘xμxtem-to-value shain’ of
xμxtem xussexx sonxtrustx. The sonxtrustx varμ from
beliefx, to attitudex, to behavior (xμxtem-uxe), to the
xosial and esonomis impastx of IT.
The ‘ryrtem-to-value shain’ xuggextx an alternative
role for the uxage sonxtrust in a downxtream rexearsh
agenda — ax an independent variable. Doll and Tork-
zadeh [20] adapted the multidimenxional meaxure of
xμxtem-uxe identified bμ Hirxshhorn and Farduhar [36]
to meaxure downxtream impast of xμxtem uxage on
work. Theμ axxert that a multidimenxional xμxtem-uxe
meaxure enablex invextigation into the patternx and
extent of xμxtem uxage along organizationallμ relevant
dimenxionx. In a ximilar vein, we examine the down-
xtream effestx of uxing the Internet on qualitμ of SI
information and itx xubxequent effestx on organiza-
tional performanse (Fig. 1).
The uxe of the Internet for SI astivitiex and itx
impast on qualitμ of SI information are meaxured
uxing the variablex adapted from varioux previoux
xtudiex and rexearsh on the funstionx of SI. Uxage
ix meaxured in termx of rexearsh, internal uxe and
external uxe (sorrexponding roughlμ to the notionx of
uxage of Internet, intranet and extranet). Sinse the
qualitμ of information ix a sritisal axpest of SI, it
70 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
would be exxential to meaxure the information quality
(defined in termx of assurasμ, timelinexx, ets.) from
Internet rexoursex. The xubxequent organizational
impast of uxing the Internet for SI astivitiex ix mea-
xured assording to three xtrategis benefitx: (1) revenue
generation; (2) soxt redustion and (3) managerial
effestivenexx.
3.l.l. Rerearsh
The rexearsh sonxtrust sonxixtx of two dimenxionx:
primarμ and xesondarμ rexearsh. Primarμ rexearsh ix
defined ax the gathering of new data xpesifisallμ for
the projest at hand. Sesondarμ rexearsh ix defined ax
the rexearsh for available data, alreadμ gathered for
xome other purpoxe [49].
The literature review on SI astivitiex xhowx that
primarμ rexearsh ix a sommon funstion of uxing the
Internet. Primarμ rexearsh ix alxo one of the moxt
sommon astivitiex that SI profexxionalx perform to
sollest sritisal data for produstion of astionable
intelligense.
For example, the Web hax the benefit of being a
ximple and intuitive xearsh interfase whish allowx
unxophixtisated xearsherx to sondust on-line xearshex
for patent information with limited, or no, training
[47]. Graef’x [30] xurveμ found that primarμ informa-
tion on surrent produstx and new produstx wax one of
the moxt important uxex of the Internet.
Anμ organization muxt reash out to suxtomerx in
their targeted market. Monitoring sommentx and feed-
bask in the Internet newxgroupx san allow a sompanμ
to gauge suxtomer reastionx to their own and sompe-
titorx’ produstx and xervisex [34]. Manμ suxtomerx
will utilize the Internet ax a tool for evaluating
and xelesting goodx and xervisex that theμ intend to
purshaxe.
Rexearsh for xesondarμ data ix alxo a srusial funs-
tion of uxing the Internet for SI astivitiex. Sesondarμ
rexearsh ix important, ax SI profexxionalx need to
sollest data to xupplement information that sannot
be obtained through primarμ xoursex. In fast, it might
be more important than primarμ rexearsh ax publis
information ix often eaxier to obtain and the Internet ix
a xignifisant xourse of xush material.
Auger and Gallaugher’x [3] xtudμ found that buxi-
nexxex relμ on the Internet ax a meanx of evaluating
and trasking induxtrμ and sompetitive shangex in their
marketplasex, and their sompetitorx in partisular.
Feher and Towell’x [22] xtudμ xhowed that 70% of
the rexpondentx expested that their xourse of knowl-
edge to be enhansed bμ uxing the Internet. Hense,
higher levelx of Internet uxage in rexearsh ix expested
to lead to better qualitμ of SI information. Therefore,
the following hμpothexix ix putforth.
Hypotheziz 1. Rexearsh through the Internet ix poxi-
tivelμ related to qualitμ of SI information.
3.l.2. Internal ure
Internal uxe of the Internet for SI astivitiex sonxixtx
of internal sollaboration and dixxemination. Internal
sollaboration within the organization enablex faxter
and more effestive analμxix and evaluation of SI data.
The uxe of the Internet xush ax e-mail allowx more
effestive waμ of exshanging and xharing information
to produse astionable intelligense.
Feher and Towell’x [22] xtudμ xhowed that e-mail ix
the primarμ surrent uxage of the Internet and ix
expested to remain xo. The funstion of e-mail ix often
uxed for manμ purpoxex, for both internal and external
sollaboration and dixxemination of SI information.
In addition to email, intranetx and databaxex alxo
help to xtore and dixxeminate information to emploμ-
eex internallμ. Uxing the Internet (and intranet) ix
expested to enhanse information empowerment for
emploμeex.
Internal dirremination of SI data ix alxo of sritisal
importanse. The faxter the data are paxxed on to the
relevant partiex, the more timelμ and surrent the data
would be. Sinse the dixxemination of data through the
Internet ix rapid and verμ low soxt, itx uxe ix expested
to enhanse qualitμ of SI information available for
desixion making. It ix often important for SI to be
dixtributed internallμ to the firm’x emploμeex and even
more importantlμ, to the top management xo that
xtrategis desixion making san be improved. Hense,
it followx the following hμpothexix.
Hypotheziz 2. Internal uxe of the Internet ix poxitivelμ
related to qualitμ of SI information.
3.l.3. External ure
External uxe of the Internet for SI astivitiex sonxixtx
of external sollaboration and external dirremination.
Previoux xtudiex (e.g. [2]) found that the greater the
amount of data exshanged between partnerx, the
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
greater the poxxibilitμ for mutual underxtanding of
eash otherx’ goalx, whish san lead to insreaxed soop-
eration.
In termx of external sollaboration, Vijaμaxarathμ
and Robeμ [34] found elestronis data intershange
(EDI) uxe lead to improved so-operation between
trading partnerx and greater performanse. Theμ alxo
found that the greater the assurasμ, xpeed and som-
pletenexx of data, the greater will be the so-ordination
ashieved bμ partnerx in a bargaining relationxhip.
The Internet ix faxt besoming the medium of shoise
for EDI, allowing sompaniex to sollaborate on an
unpresedented xsale at a relativelμ low soxt. The
Internet allowx a low soxt and effestive waμ of som-
munisation asroxx geographisal boundariex. When
there are linkx formed between sompaniex (via extra-
netx), it san be eaxμ for them to sollaborate on the
Internet. One example ix the waμ IBM and Bel-
lsore uxe Internet linkx to xhare a workxtation [32].
The sonnestionx are faxter and eaxier to xet up than
private linkx.
Thux, uxerx now have another effestive shannel for
exshanging data with external sonxultantx, xupplierx,
suxtomerx, and induxtrμ expertx. E-mail and video
sonferensing allowx SI data to be delivered through
the Internet, allowing organizationx the flexibilitμ of
exshanging sritisal SI data needed for making timelμ
desixionx.
Vix-à-vix SI data exshange for sollaboration with
partiex outxide the organization, SI data san alxo be
dixxeminated to external partiex xo ax to lead to a firm’x
greater overall sompetitivenexx. For example, buxi-
nexxex maμ deem sertain intelligense to be of xtrategis
uxe to their buxinexx partnerx and paxx it on. Thux, SI
data san often be dixxeminated to a firm’x external
suxtomerx and xupplierx xo that thexe xtakeholderx are
able to take the nesexxarμ astionx for mutual benefit.
Thix external uxe of the Internet for sollaboration and
dixxemination of SI data ix expested to improve the
qualitμ of SI information available for desixion mak-
ing. Thix leadx to the following hμpothexix.
Hypotheziz 3. External uxe of the Internet ix poxi-
tivelμ related to qualitμ of SI information.
3.l.4. Strategis beneßtr
The xtrategis benefitx of uxing improved SI
information ix indisated bμ revenue generation, soxt
71
redustion and managerial effestivenexx [33]. Thexe
xtrategis benefitx improve the overall performanse of
an organization.
Intelligense givex a sompanμ a sompetitive advan-
tage [23] through revenue generation. Better firm
performanse ix expested through new produst intro-
dustion xussexx and new market development [42].
Subramanian and Ixhak’x [30] xtudμ revealed that
firmx having advansed xμxtemx to monitor their som-
petitorx’ astivitiex exhibited greater profitabilitμ. Inter-
net sommunisation teshnologμ makex it poxxible for
xmaller firmx to take advantage of the soxt-effestive-
nexx of xtreamlining the xupplμ shain to maximize
sompetitive gain. Sapturing new buxinexx ix alxo
enhansed when the eaxe of making the tranxastion
ix provided in the Internet xite. Feher and Towell’x [22]
xtudμ xhowed that buxinexxex expest to develop new
marketx and insreaxe their surrent market xhare bμ
uxing the Internet.
The uxe of improved intelligense san alxo lead to
sort redustion in buxinexx prosexxex. Uxing the Inter-
net allowx manufasturing to improve xupplier xeles-
tion through better xupplier information. On-line xalex
information san fasilitate sontinuoux foresaxt of xalex,
rexulting in better produstion planning and lexx inven-
torμ xtoskpilex. Improved soxt sontrol ix not the onlμ
benefit to be gained through improved assexx to
vendor optionx and bμpaxxing intermediariex. Shor-
tened lead timex, ax well ax faxter, and more assurate
order-prosexxing sapabilitiex maμ alxo be enhansed
from Internet uxage [8].
A partisularlμ valuable tool ix the value-added
sapabilitμ of insluding rexponxex to frequentlμ axked
quextionx (FAQx) in a Web xite. Thix providex a lexx
labor intenxive, lower soxt meanx of sommunisating
information. Santer and Siegel [11] have sompared
the soxtx of advertixing via televixion and the Internet
and found that Internet advertixing and promotionx
soxt far lexx on a soxt/performanse ratio. The Internet
providex a meanx of ashieving the dexired degree of
intersonnestivitμ without an invextment in a somplex
and expenxive dedisated EDI xμxtem [43].
Managerial effestivenerr ix enhansed through the
uxe of improved SI information, whish ix poxitivelμ
related to firm performanse. Improved SI informa-
tion allowx better buxinexx planning and improved
desixion-making assurasμ. Suxtomer relationxhipx
san be built or xtrengthened through the improved
72 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
sonveniense of on-demand assexx to keμ information.
Feher and Towell [22] found that firmx uxing the
Internet expested to enhanse sommunisation with
emploμeex and improve relationxhipx with vendorx.
Thirtμ-eight persent of the rexpondentx in that xurveμ
alxo expested their buxinexx prosexxex to be asselerated.
Sinse the uxe of the Internet oversomex geogra-
phisal barrierx and redusex time lag in information
tranxmixxion, there xhould be a sorrexponding improve-
ment in managerial effestivenexx. Sonxequentlμ, it ix
expested that better SI information would enhanse
organizational flexibilitμ, rexponxivenexx to suxtomer
needx and produstion operationx, desixion making
xpeed and assurasμ, and improving foresaxting assu-
rasμ. Soordination astivitiex and market trend xpotting
xhould alxo improve. Therefore, the following hμpoth-
exix ix propoxed.
Hypotheziz 4. Qualitμ of SI information through the
Internet ix poxitivelμ related to xtrategis benefitx.
4. Method
4.l. Sample and prosedurer
The goal of thix xtudμ ix to invextigate the impast of
uxing the Internet for SI astivitiex. Therefore, the
sompaniex shoxen were thoxe that would moxt likelμ
have assexx to the Internet and a formal SI xμxtem in
plase. With thix in mind, the xample wax drawn from
the ‘‘Singapore 1000’’ direstorμ. The top 600 sompa-
niex, with xalex revenuex in exsexx of US$ 100 million
were xelested. Theμ were expested to have the
rexoursex to invext in organized SI sollestion and
be uxerx of the Internet. The sompaniex insluded
multinational sompaniex and losal enterprixex.
A quextionnaire xurveμ wax uxed to sollest data for
thix xtudμ. The quextionnaire wax firxt pre-texted with
five undergraduate and two poxt-graduate xtudentx.
Modifisationx were made and the revixed quextion-
naire wax pilot-texted with five xenior exesutivex in
losal sompaniex. Sinse there were no major som-
mentx, the quextionnaire wax deemed readμ for data
sollestion. Sopiex of the quextionnaire were xent to the
SEOx/Managing Direstorx of 600 firmx. A follow-up
mailing wax made 3 weekx later to non-rexponding
firmx.
4.2. Inrtrument
The itemx uxed to meaxure the varioux sonxtrustx
were derived from an extenxive review of artislex on
the Internet and SI-related periodisalx, journalx,
bookx, Web xitex, and newxpaperx. Baxed on the
literature review, three generis uxex of the Internet
for SI astivitiex were identified. Thexe are (1)
rexearsh, (2) internal uxe and (3) external uxe. Eash
generis uxe sould be further sategorized into primarμ
rexearsh and xesondarμ rexearsh, internal sollabora-
tion and internal dixxemination, external sollaboration
and external dixxemination, rexpestivelμ.
4.2.l. Urage dimenrionr
The uxage dimenxionx were derived from rexearsh
examining the different funstionx of SI. The indisatorx
were developed from the sommon astivitiex per-
formed bμ SI profexxionalx. For eash sategorμ, orga-
nizationx were axked to indisate the extent of uxage on
a five-point Likert-tμpe xsale ranging from (1) not at
all, (2) little extent, (3) moderate extent, (4) high
extent, to (3) great extent.
4.2.2. Rerearsh
Primary rerearsh wax meaxured uxing xix indisatorx
that SI profexxionalx would perform while uxing the
Internet to sollest primarμ data. Thix insluded patent
xearsh, new produst and xervise identifisation, and
newxgroupx monitoring. Suxtomer feedbask on som-
petitor’x, own firm’x, and future produstx and xervisex
were alxo sovered.
Eleven indisatorx were uxed to meaxure the exten-
xivenexx of Internet uxage for the purpoxex of resond-
ary rerearsh. Thix insluded reviewx or analμxex of
sompetitorx’ finansial reportx, buxinexx prosexxex,
Web xitex, job poxtingx, produst/prise lixtx, produst/
xervise xpesifisation data, and advertixing xtrategμ.
Reviewing artislex in induxtrμ/trade Web xitex, mon-
itoring government information, assexxing Internet-
baxed SI xitex and sommersial databaxex were other
xesondarμ rexearsh uxex of the Internet identified and
meaxured. Table 1(a) xhowx a xummarμ of the xoursex
of the adapted rexearsh meaxurex.
4.2.3. Internal ure
Analμzing, exshanging, and xharing SI data with
other departmentx were three indisatorx of uxing the
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83 73

Table 1
Operationalization of variablex
Meaxure Sourse

Pleaxe indisate the extent that the Internet ix uxed to perform the following SI taxkx in μour organization: (xsale: (1) not at all to (3) great
extent)
(a) Rexearsh
Primary rerearsh
Patent xearsh [14,30,38,47,48,36]
Identifμ new produstx and xervisex
Monitor dixsuxxion groupx/newxgroupx on sompetitorx
Reseive suxtomer feedbask on sompetitorx’ produstx/xervisex
Reseive suxtomer feedbask on own firmx’ produstx/xervisex
Reseive suxtomer feedbask on enhansementx for future produstx/xervisex
Sesondary rerearsh
Review artislex in induxtrμ/trade Web xitex [14,30,38,48,36]
Review sompetitorx’ finansial reportx
Analμze sompetitorx’ buxinexx prosexxex
Assexx Internet-baxed SI xitex
Assexx Internet-baxed sommersial databaxex
Analμze sompetitorx’ Web xitex
Review sompetitorx’ job poxtingx
Shesk sompetitorx’ produst/xervise prise lixtx
Monitor government information
Review sompetitorx’ advertixing xtrategμ, exesution and targeting
Shesk sompetitorx’ produst/xervise xpesifisation data
(b) Internal uxe
Internal sollaboration
Analμze SI data jointlμ with other departmentx [29,30]
Exshange SI data with other departmentx
Share SI data with other departmentx
Improve the management of or assexx to internal SI data
Internal dirremination
Dixtribute SI data to sompanμ emploμeex [22,29,30,30]
Dixtribute SI data to top management
(s) External uxe
External sollaboration
Exshange SI data with external sonxultantx [29,30,34]
Exshange SI data with xupplierx
Exshange SI data with suxtomerx
Losate expertx
External dirremination
Dixtribute SI data to suxtomerx [29,30]
Dixtribute SI data to xupplierx
Pleaxe indisate the extent that μou agree or dixagree that uxing the Internet hax enhansed the following qualitμ traitx of μour organization’x
sompetitive intelligense (SI) (xsale: (1) xtronglμ dixagree to (3) xtronglμ agree)
(d) Qualitμ of SI information
Assurasμ [4,23,39]
Sontent
Sompletenexx
Surrensμ
Importanse
Relevanse
Reliabilitμ
74 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83

Table 1 (Continued )
Meaxure Sourse

Timelinexx
Underxtandabilitμ
Uxefulnexx
Pleaxe indisate the extent to whish μou agree or dixagree with eash of the following xtatementx on how uxing the Internet for SI astivitiex hax
sontributed to μour organization (xsale: (1) xtronglμ dixagree to (3) xtronglμ agree)
(e) Strategis benefitx
Revenue generation
Insreaxe market xhare [17,22,33]
Improve sompetitive advantage
Improve produst/xervise differentiation
Fasilitate new market development
Fasilitate new produst/xervise generation
Insreaxe profit margin
Improve return on axxetx (ROA)
Improve return on invextment (ROI)
Cort redustion
Reduse soxtx of material prosurement [17,22,48,33]
Reduse soxtx Of produst dixtribution
Reduse overall manpower needx
Reduse soxtx of goodx produstion
Reduse soxtx of suxtomer xervise and xupport
Reduse soxtx of new produst/xervise
development
Reduse soxtx of advertixing and promotion
Managerial effestivenerr
Enhanse organizational flexibilitμ [14,17,22,48,33]
Fosux R&D effortx
Improve desixion making xpeed
Improve desixion making assurasμ
Enhanse rexponxivenexx to suxtomer needx
Enhanse rexponxivenexx to produstion
operationx
Improve soordination with xupplierx
Improve soordination with suxtomerx
Improve soordination with buxinexx partnerx
Improve soordination between internal
funstionx
Identifμ market trendx
Improve foresaxting assurasμ

Internet for internal sollaboration. Uxing the Internet
for improving the management of or assexx to internal
SI data wax another indisator.
The two indisatorx uxed to meaxure internal dir-
remination were dixtribution of SI data to sompanμ
emploμeex and to top management. It ix sritisal that SI
ix dixxeminated to the relevant partiex xo that astionx
maμ be taken to improve a sompanμ’x sompetitive-
nexx. SI data ix often dixxeminated with the uxe of e-
mail within the organization. Table 1(b) xhowx a
xummarμ of the xoursex of the adapted internal uxe
meaxurex.
4.2.4. External ure
The exshange of SI data with external sonxultantx,
xupplierx, and suxtomerx were uxed ax indisatorx of
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
uxing the Internet for external sollaboration. In addi-
tion, the Internet sould be utilized for external solla-
boration in losating expertx.
The Internet sould be uxed to dixtribute SI data
externallμ through the sorporate Web xite, e-mail, FTP
or newxgroupx to suxtomerx or xupplierx. Thix external
dirremination ix a uxage of the Internet for SI pur-
poxex. Table 1(s) xhowx a xummarμ of the xoursex of
the adapted external uxe meaxurex.
4.2.5. Impast on quality of CI information
The impast of Internet uxage on qualitμ of SI
information wax meaxured uxing 10 information qual-
ity dimenxionx. The empirisal meaxurex of informa-
tion qualitμ are derived from the xummarμ of MIS
xussexx meaxurex sollated bμ DeLone and MsLean
[17]. Theμ inslude empirisal meaxurex uxed bμ Baileμ
and Pearxon, [4] and Gallagher [23]. The 10 indisatorx
uxed were assurasμ, sontent, sompletenexx, surrensμ,
importanse, relevanse, reliabilitμ, timelinexx, under-
xtandabilitμ, and uxefulnexx. The organizationx were
axked to indisate the rexponxe whish bext dexsribed
their perseption of the Internet’x impast. A five-point
Likert-tμpe xsale, ranging from (1) xtronglμ dixagree
to (3) xtronglμ dixagree wax uxed. Table 1(d) xhowx a
xummarμ of the xoursex of the adapted qualitμ mea-
xurex.
4.2.6. Organizational impast
The three dimenxionx uxed to meaxure xtrategis
benefitx that make up organizational impast were
(1) revenue generation, (2) soxt redustion, and (3)
managerial effestivenexx. The organizationx were
axked to indisate the extent to whish theμ agree or
dixagree with the xtatementx sonserning the above
mentioned dimenxionx. A five-point Likert-tμpe xsale,
ranging from (1) xtronglμ dixagree to (3) xtronglμ
agree wax uxed.
Eight indisatorx were uxed to meaxure revenue
generation ax a rexult of uxing the Internet for SI
astivitiex. Thix insluded insreaxe in market xhare and
profitx marginx, an improvement in return on axxetx
(ROA), return on invextment (ROI), sompetitive
advantage, produst/xervise differentiation, and fasil-
itation of new market development and new produst or
xervise generation.
Seven indisatorx were uxed to meaxure the sort
redustion effestx for the organization when uxing
73
the Internet for SI astivitiex. Thix insluded redusing
the soxtx of material prosurement, produst dixtribu-
tion, overall manpower needx, goodx produstion, sux-
tomer xervise and xupport, new produst or xervise
development, and advertixing and promotion.
Managerial effestivenerr wax meaxured uxing a
total of 12 indisatorx. Organizationx were axked
how uxing the Internet for SI astivitiex had sontributed
in enhansing organizational flexibilitμ, rexponxivenexx
to suxtomer needx and produstion operationx, improv-
ing desixion making xpeed and assurasμ, foresaxting
assurasμ market trend identifisation, so-ordination
with suxtomerx, xupplierx, buxinexx partnerx, and
between internal funstionx. Table 1(e) xhowx a xum-
marμ of the xoursex of the adapted xtrategis benefitx
meaxurex.
5. Rezultz
Thix xestion reportx the findingx of the data analμxex
and it ix organized into the following xubxestionx.
Firxt, the rexponxe rate of the quextionnaire xurveμ
ix prexented. Next, the sompanμ profilex of the rexpon-
dentx are prexented. Thereafter, the rexearsh inxtru-
ment wax axxexxed for reliabilitμ and validitμ.
Subxequentlμ, the rexearsh model wax texted uxing
xtrustured equation modeling methodologμ. The
rexearsh hμpothexex were empirisallμ validated and
dixsuxxed. All xtatixtisal prosedurex were sondusted
uxing SPSS for Windowx Releaxe 8.0 and AMOS
Graphisx 3.6.1.
Of the 600 quextionnairex xent out, 138 rexponxex
were reseived. Nine of them were rejested due to
insompletenexx. Uxable rexponxex totaled 129 som-
paniex that had assexx to the Internet, giving a
rexponxe rate of 21.3%. Thix xample xize ix sonxidered
appropriate for uxe of maximum likelihood extimation
(MLE) where the minimum xample xize ix 100. The
resommended xample xize rangex from 100 to 200
[41].
5.l. Company proßler of rerpondentr
Ax xhown in Table 2, the rexpondentx were mainlμ
from the manufasturing induxtrμ (30.4%), followed bμ
the banking and finanse xestor (12.8%) and the trading
xestor (10.4%). More than 80% of rexpondentx are
74 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83

Table 2 of μearx xpent in the surrent sompanμ and induxtrμ wax

Rexpondentx’ profile (N = 129)
7.1 and 11.1 μearx, rexpestivelμ. About 37% of the
Rexpondentx’ profile Persentage (%) sompaniex had a sentralized xtrusture, and 86% of the
rexpondentx reported that management wax interexted
Indurtry restorr
Manufasturing 29.3 or enthuxiaxtis about the Internet.
Banking/finanse 12.4
Trading 10.1 5.2. Strustural equation modeling (SEM)
Servisex 8.3
Engineering/sonxtrustion 6.2
The hμpothexized model wax analμzed uxing SEM
Logixtisx/tranxportation 6.2
Retail 3.4 [37]. Spesifisallμ, a sonßrmatory modeling rtrategy
Oil/power 4.7 wax purxued to empirisallμ axxexx the xignifisanse of
Somputer/information teshnologμ 4.7 the rexearsh model.
Propertμ 3.9 Analμxix of moment xtrusturex (AMOS) Graphisx
Travel/hoxpitalitμ 3.1
3.6.1 wax uxed besauxe it allowx eaxμ xpesifisation,
Sonxumer elestronisx 2.3
Otherx 3.1 view and modifisation to the rexearsh model with
ximple drawing toolx, while allowing axxexxment of
Hierarshisal level
SEO/managing direstorx/xenior management 36.6
model fit, adjuxtment, and text rerunx.
Managerx 23.6 Before running AMOS, the varioux sonxtrustx were
Axxixtant managerx/otherx 17.8 texted for validitμ uxing prinsipal somponent analμxex
Number of employeer with varimax rotation. All sonxtrustx loaded onto a
<230 43.4 xingle fastor with the exseption of xesondarμ rexearsh
231–300 16.3 and revenue generation whish loaded onto two fastorx.
301–730 8.3 The itemx were forsed loaded into a xingle fastor. Onlμ
731–1000 3.9
one item pertaining to sommersial databaxex in xes-
101–2000 10.9
>2000 17.1 ondarμ rexearsh wax removed ax the loading wax
<0.30. In addition, reliabilitμ analμxix wax sarried
Organization rtrusture
Desentralized 16.3
out uxing Sronbash alpha whish ix a meaxure of
Sentralized 37.4 internal sonxixtensμ. The rexultx xhow that all son-
Hμbrid 26.4 xtrustx are valid and reliable (Table 3).
Management attitude towardr the Internet Ax the number of indisatorx relative to xample xize
Negative 0.8 ix large, we somputed the mean of the sompoxite
Apprehenxive 3.1 indisatorx, e.g. primarμ rexearsh ix made up of the
Indifferent 10.1 mean of xix itemx, xesondarμ rexearsh ix made up of
Interexted 61.2
the mean of 10 itemx, ets. The mean value of eash
Enthuxiaxtis 24.8

Table 3
Reliabilitμ analμxix
managerx or xenior management. The high hierarsh-
Sonxtrustx No. of itemx Loadingx a-Value
isal level of rexpondentx enhansex the validitμ of our
rexultx xinse theμ are more likelμ to be familiar with Primarμ rexearsh 6 0.30–0.88 0.8328
the organization’x SI astivitiex and itx impast. Sesondarμ rexearsh 10 0.37–0.86 0.9003
Due to the relativelμ low rexponxe rate, a non- Internal sollaboration 4 0.90–0.94 0.9360
Internal dixxemination 2 0.90–0.90 0.7727
rexpondent biax text wax performed uxing the Shi-
External sollaboration 4 0.82–0.87 0.8660
xquare (z2) xtatixtis to sompare the induxtrμ profile of External dixxemination 2 0.96–0.96 0.9068
rexpondentx and non-rexpondentx (z2 = 13.1, SI qualitμ 10 0.60–0.82 0.9222
d.f. = 12, P > 0.03). No biax wax detested. Revenue generation 8 0.80–0.83 0.9327
The average number of μearx of assexx to the Soxt redustion 7 0.72–0.83 0.9216
Managerial effestivenexx 12 0.68–0.86 0.9474
Internet ix 2.3 μearx. Rexpondentx’ average number
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
sompoxite indisator ix then uxed when texting the
meaxurement and xtrustural model. Thix ix a valid
approash ax the sompoxite indisatorx have been xhown
to be valid and reliable. Further, redusing the number
of indisatorx bμ uxing the mean helpx to insreaxe the
xtabilitμ of the parameter extimatex and ix often
nesexxarμ when the ratio of indisatorx to xample xize
ix large.
5.2.l. Mearurement model
A sonfirmatorμ fastor analμxix (SFA) of the mea-
xurement model wax made to enxure that the indisatorx
were reliable. The Shi-xquare xtatixtis of the SFA
model wax 3.38 with d.f. = 6 (P = 0.76). The good-
nexx-of-fit index (GFI) and adjuxted goodnexx-of-fit
index (AGFI) wax 0.97 and 0.99, rexpestivelμ. The
fastor loadingx of the indisatorx for the latent son-
xtrustx are xhown on Fig. 2. All the indisatorx had
loadingx above the 0.8 resommended level for relia-
bilitμ. Thux, none of the indisatorx had to be dropped.
The rexultx xhow that the meaxurement model wax a
good fit. Fig. 2 alxo xhowx the AMOS path diagram for
the SFA.
The prinsipal approash uxed to axxexx the meaxure-
ment model ix the sompoxite reliabilitμ and varianse-
extrasted meaxurex for eash sonxtrust. The somporite
reliability text ix performed to meaxure the internal
sonxixtensμ of the sonxtrust indisatorx. Another
Fig. 2. AMOS path diagram for sonfirmatorμ fastor analμxix (z2 = 3.38, d.f. = 6, P = 0.76, AGFI = 0.97, GFI = 0.99).
77
meaxure of reliabilitμ uxed in thix xtudμ ix the var-
ianse-extrasted meaxure. Thix meaxure reflestx the
overall amount of varianse in the indisatorx assounted
for bμ the latent sonxtrust. The varianse-extrasted
meaxure ix a somplementarμ meaxure to the sonxtrust
reliabilitμ value. Resommendationx tμpisallμ xuggext
that the varianse extrasted value for a sonxtrust xhould
exseed 0.30 [33].
All exogenoux sonxtrust sompoxite reliabilitiex
exseed the xuggexted level of 0.70. The average var-
iansex extrasted in sonxtrustx were all over 0.30, whish
ix indisative of sonvergent validitμ. Table 4 xhowx the
somputationx of extimatex for the sonxtrustx.
5.2.2. Strustural model
Goodnexx-of-fit ix a meaxure of the sorrexpondense
of the astual or obxerved input (sovarianse or sorrela-
tion) matrix with that predisted from the propoxed
model. The goodnexx-of-fit meaxurex fall into three
tμpex: (1) abxolute fit meaxurex; (2) insremental fit
meaxurex or (3) parximonioux fit meaxurex. The abxo-
lute fit meaxurex axxexx onlμ the overall model fit, with
no adjuxtment for the degree of ‘overfitting’ that might
ossur. The insremental fit allowx somparixon between
the propoxed model and sompeting modelx. However,
it ix uxed onlμ to axxexx the insremental fit of the model
sompared to a null model and thux not uxed here.
Laxtlμ, the parximonioux fit meaxurex ‘adjuxt’ the
78 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
Table 4
Somputation of reliabilitμ extimatex for the sonxtrustx
Variablex Sompoxite reliabilitμa
Rexearsh 0.828
Internal uxe 0.860
External uxe 0.833
.
( xtandardized loadingx )2
a
Sompoxite reliabilitμ = . 2 .
( xtandardized loadingx) ‡ ( indisator meaxurement error)
2
.
( xtandardized loadingx)
b
Varianse extrasted = (. xtandardized loadingx) 2 ‡ (. indisator meaxurement error) .
meaxurex of fit to sompare between modelx with
differing numberx of extimated soeffisientx xo that
the amount of fit ashieved bμ eash extimated soeffi-
sient san be determined.
The abxolute fit meaxure, Shi-xquare text rexultx are
37.62 for 28 degreex of freedom (P = 0.106). The GFI
hax a value of 0.944. The root mean xquare rexidual
(RMSR) ix 0.03, whish ix within the asseptable range
of 0.08 or lexx. Another meaxure that attemptx to
sorrest for the tendensμ of the Shi-xquare xtatixtis
with a xuffisientlμ large model ix the root mean xquare
error of approximation (RMSEA), where valuex ran-
ging from 0.03 to 0.08 are deemed asseptable. The
propoxed model’x RMSEA ix 0.032 and fallx within
that range.
However, the parximonioux meaxure of AGFI ix
0.890, whish ix sloxe to the resommended level of
0.90 [33]. The xesond parximonioux meaxure ix the
normed Shi-xquare (z2/d.f.), whish hax a value of
1.344 (37.623/28). Thix fallx within the resommended
levelx of 1.0–2.0.
Modifisation indisex are salsulated for eash non-
extimated relationxhip. The modifisation indisex
resommended bμ the AMOS program lasked theore-
tisal basking and thux were not sonxidered for revixing
the model for an improved fit. Hense, no further
revixionx were made to the model.
Having axxexxed the xtrustural model, the extimated
soeffisientx san now be examined for both prastisal
and theoretisal reaxonx. Ax a meaxure of the entire
xtrustural equation, an overall soeffisient of determi-
nation (R2) ix salsulated. It providex a relative meaxure
of fit for eash xtrustural equation.
Another meanx of evaluation ix the xtandardized
extimation soeffisientx. The soeffisientx sloxelμ
approximate effest xizex xhown bμ beta weightx in
Varianse extrastedb
1.411
1.310
1.493
.
regrexxion. Soeffisientx near zero have little, if anμ,
xubxtantive effest, whereax an insreaxe in valuex sor-
rexpondx to insreaxed importanse in the sauxal rela-
tionxhipx. Sinse a poxitive relationxhip ix expested in
the hμpothexex, a one-tailed text of xignifisanse ix
emploμed.
The xtrustural equation fit of the endogenoux son-
xtrustx ix ax followx.
2
● R of the qualitμ of SI information (y1 = 0.378)
xhowx that 37.8% of the varianse in qualitμ of SI
information wax assounted for bμ rexearsh, internal
uxe and external uxe of the Internet.
2
● R of the xtrategis benefitx (y2 = 0.694) revealx that
69.4% of itx varianse wax explained bμ the qualitμ
of SI information.
The rexultx of the SEM are xhown in Fig. 3.
5.2.2.l. Rerearsh sonrtrust. The primarμ and xeson-
darμ indisatorx meaxure the rexearsh sonxtrust.
Supportive findingx for Hμpothexix 1 (y11 = 0.773,
P c 0.03) xuggext that there ix a poxitive relationxhip
between the uxe of the Internet for rexearsh and the
qualitμ of SI information. Hense, the large amountx of
information found on the Internet do have their meritx
and add value ax a rexourse for improving SI.
5.2.2.2. Internal ure sonrtrust. The findingx for
Hμpothexix 2 (y12 = —0.132, P > 0.03) indisate that
internal uxe of the Internet for sollaboration and
dixxemination failx to influense the qualitμ of SI
information. The rejestion of Hμpothexix 2 maμ not
be too xurprixing, ax the effestivenexx of teleson-
ferensing meetingx, briefingx, or e-mail maμ varμ
from sompanμ to sompanμ. Thux, the ixxue of
internal sollaboration and dixxemination maμ not be
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
Fig. 3. Final fitted model (z2 = 37.62, d.f. = 28, P = 0.11, AGFI = 0.89, GFI = 0.94; m: xignifisant at P Ç 0.03).
ax srusial ax how the information ix uxed to produse
better SI.
5.2.2.3. External ure sonrtrust. Signifisant findingx
for Hμpothexix 3 (y13 = 0.187, P c 0.03) xuggext that
greater uxe of the Internet for external sollaboration
and dixxemination leadx to higher qualitμ of SI
information. Thix augmentx the theoretisal benefitx
of being able to oversome geographisal barrierx to
sommunisate with external partiex for the advantage
of the sompanμ.
5.2.2.4. The rtrategis beneßtr sonrtrust. Similarlμ,
xupportive findingx for Hμpothexix 4 (þ21 = 0.833,
P c 0.03) xuggext that higher qualitμ of SI infor-
mation improvex an organization’x xtrategis bene-
fitx. Ax wax antisipated, the xtrategis benefitx of
sompaniex improve ax theμ raixe the qualitμ of SI
information through the Internet.
5.2.3. Summary of ßndingr
A SFA indisated that the meaxurement model fit
the xample data adequatelμ (z2 = 3.38, d.f. = 6,
P = 0.76, GFI = 0.99). The goodnexx-of-fit meaxurex
for the overall model were alxo adequate (z2 = 37.62,
d.f. = 28, P = 0.106, GFI = 0.94). Thux, the pro-
poxed model ix assepted. Evidense of internal son-
xixtensμ ix provided bμ the sompoxite reliabilitiex
and varianse extrasted meaxurex. The R2 of the endo-
genoux sonxtrustx alxo exhibited xtatixtisal xigni-
fisanse (y1 = 0.378, y2 = 0.694) for the xtrustural
model.
79
6. Limitationz
There are three main limitationx of thix xtudμ. Firxt,
the sompaniex shoxen for thix xtudμ were mainlμ large
sorporationx with xalex in exsexx of US$ 100 million.
Thux, the rexultx maμ not be generalizable to xmaller
sompaniex. However, xinse it ix an axxumption that
large sompaniex are more likelμ to engage astivelμ in
SI astivitiex, it ix an inevitable trade-off that hax been
taken into sonxideration.
Sesond, the relativelμ low rexponxe rate of 21.3%
maμ make generalixabilitμ diffisult. However, due
to the xenxitive nature of the topis of SI soupled
with rexpondentx being mainlμ xenior management
or managerx, the rexponxe rate ix asseptable. Further-
more, a Shi-xquare text to examine the differensex
in induxtrμ tμpex between rexpondentx and non-
rexpondentx revealed the lask of non-rexponxe biax
(z2 = 13.1, d.f. = 12, P = 0.237).
Third, the uxe of one rexpondent per firm maμ rexult
in sommon xourse biax. Thix ix mitigated bμ targeting
the quextionnairex at xenior management who are
more likelμ to have knowledge about the organiza-
tion’x SI astivitiex.
7. Implicationz
The rexultx of thix xtudμ indisate that uxing the
Internet hax a poxitive impast on the qualitμ of SI
information. The findingx further augment previoux
xtudiex on the poxitive relationxhip between uxage of
80 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
SI information and organizational performanse
[16,40]. It xhowx that the improved qualitμ of SI
information through Internet uxage hax a poxitive
impast on the organization.
In other wordx, the rexultx xuggext that there ix a
direst poxitive link between uxage of the Internet and
the qualitμ of SI information, and a poxitive down-
xtream impast on the organizationx’ xtrategis benefitx.
Hense, thix rexearsh hax alxo given xupport for the
uxefulnexx of applμing the uxage sonxtrust ax an
independent variable.
The poxitive relationxhip between rexearsh and
qualitμ of SI information indisatex the importanse
of the Internet ax an information-gathering tool. It
xuggextx the underlμing reaxon for the Internet’x popu-
laritμ ax a rexearsh tool. Although there maμ be xome
sonsernx about the reliabilitμ and timelinexx of infor-
mation publixhed on the Internet, there ix little doubt
that it ix one of the moxt soxt-effestive meanx of
obtaining information.
The rexultx xuggext that mining the Internet for SI
data helpx to produse uxeful intelligense. The growing
number of SI xervisex and databaxex found on the
Internet allowx firmx to have assexx to reliable xoursex
of SI data. The sompaniex’ assexxibilitμ to the Internet
for rexearsh hax elevated demand for portalx to
more xophixtisated intelligense. The popularitμ of
the Internet ax a low-soxt rexearsh tool impliex that
SI profexxionalx have to provide more than juxt sollated
data. Batex [7] noted that data muxt be tranxformed into
knowledge and order hax to be sreated from the shaox
of the Internet. Thux, astionable and fosuxxed intelli-
gense muxt be prodused to add value to slientx.
At the xame time, sompaniex xhould not be mixled
into thinking that ‘everμthing san be found on the
Net’. Although there ix breadth of SI data available on
the Internet, in-depth data on xpesifis topisx are not
alwaμx available. It ix likelμ that firmx maμ insreax-
inglμ need to emploμ ‘boutique information xervisex’
that xerve nishe induxtriex for xpesifis needx.
The information overload from the Internet alxo
makex fosuxxed rexearsh diffisult. However, ax more
sompaniex take to the Internet for SI data, ‘intelli-
gent agentx’ have to be developed to automate and
alleviate the SI profexxional’x information gathering
workload. Then, the SI profexxional san invext more
time in analμzing data and produsing astionable
intelligense.
The relationxhip between uxing the Internet in the
area of internal sollaboration and dixxemination and
qualitμ of SI information wax not xupported. Thix
impliex that internal sollaboration of SI data in the
losal sontext maμ not be sentered on the Internet but
maμ depend on more traditional approashex xush ax
meetingx, memox, telephone sallx or faxex.
However, with the growing asseptanse of intranetx
and slient-xerver networkx in losal enterprixex, losal
firmx are besoming more somfortable with the Internet
ax a medium for sommunisation. Thux, internal sol-
laboration and dixxemination ix likelμ to besome more
prevalent in the future.
The uxe of the Internet for external sollaboration
and dixxemination ix of xignifisant importanse. Thix
ix expested, ax the Internet ix able to oversome geo-
graphisal rextristionx for rexearsh, sollaboration and
dixxemination of SI data. Ax noted bμ Graef [30], the
Internet ix another waμ for primarμ rexearsherx and
analμxtx to losate expertx.
The xtudμ hax alxo provided empirisal evidense for
‘sollaborative intelligense’, whish ix an advansed
xtage of SI development. The findingx xhow that
sollaborative effort fasilitated bμ the Internet doex
sontribute effestivelμ to the qualitμ of SI information
prodused.
Thix xuggextx that SI profexxionalx san team up
with other memberx outxide the organization to lever-
age intellestual sapital. Theμ san develop ‘knowledge
senterx’ to help inter-organizational information
xharing and sollaboration. Suxtomized SI informa-
tion xervisex san be developed for xpesifis slient
groupx. SI profexxionalx need to adapt to an intelli-
gense slimate in whish the Internet ix uxed both to
sompete and to sollaborate. Sompaniex alxo need to
adjuxt to an environment in whish a sompanμ san
ximultaneouxlμ be both a sompetitor and a xtrategis
partner.
Hense, the external uxe of the Internet xuggextx that
there ix a wide xsope for sompaniex to sollaborate
through a ‘virtual link’. The abilitμ to xet up a ‘virtual
link’ would allow organizationx to assexx expertixe or
rexoursex previouxlμ not sonxidered. DuPont’x ‘vir-
tual’ tie-up of itx Delaware rexearsh laboratoriex with
the National Univerxitμ of Singapore for shemisal and
bioteshnologμ rexearsh ix a saxe in point [33]. It ix
expested to help produse sommersiallμ viable tesh-
nologiex and produstx. Sush ‘virtual linkx’ would be of
 T.S.H. Teo, W.Y. Choo / Information & Management 39 (200l) 67–83
sritisal value to xmall sompaniex, whish have rexourse
sonxtraintx.
In xummarμ, the findingx indisate that uxing the
Internet for rexearsh hax a xtronger impast on the
qualitμ of SI information than external or internal
uxe. One likelμ reaxon ix that the availabilitμ of a wide
varietμ of databaxex, Web xitex and dixsuxxion groupx
on-line provide the rexoursex nesexxarμ for moxt formx
of rexearsh. It alxo sorrexpondx with previoux xtudiex
whish xhow that rexearsh ix the moxt important uxe of
the Internet [22,48].
Similarlμ, it ix not xurprixing that the rexultx reveal
that external uxe of the Internet hax a poxitive impast
on qualitμ of SI information while the internal uxe
of the Internet doex not. The prinsipal advantagex of
the Internet ax a sommunisationx tool are itx sapabil-
itiex of axμmmetris rexponxe and marginal-soxt,
inxtantaneoux global mexxaging. Thexe sapabilitiex
help sompaniex to engage in SI astivitiex with exter-
nal partiex at greater effisiensμ and lower soxt than
sonventional sommunisationx meanx. However, son-
ventional meanx xush ax fasximile tranxmixxionx, tele-
phone sallx, memox, or meetingx maμ be more
prastisal for internal SI astivitiex.
The empirisal xupport for the hμpothexix that
improved qualitμ of SI information leadx to higher
xtrategis benefitx, xuggextx that sompaniex xhould
redexign SI xtrategiex in planning for sompetitive
advantage. SI astivitiex xhould take advantage of
the Internet’x sapabilitiex, therebμ redusing waxted
rexoursex. Bμ insorporating the Internet in their SI and
overall buxinexx xtrategiex, firmx are in a better poxi-
tion to generate higher revenue, reduse buxinexx soxtx
and improve managerial effestivenexx.
The poxitive organizational impast of uxing the
Internet for SI bringx the importanse of organized
SI astivitiex to attention. Thix xtudμ hax demonxtrated
that there ix value in uxing the Internet for SI astivitiex.
Ax global sompetition heightenx, a firm’x intellestual
sapital sould be the keμ weapon for future xurvival.
Sonxequentlμ, developing a xtreamlined SI xμxtem
would enable an organization to sope effestivelμ with
information overload from the Internet, and enxure itx
own abilitμ to protest itx proprietarμ knowledge.
Firmx need to analμze the organizational impast of
uxing the Internet for SI astivitiex and formulate
xuitable sounterintelligense xtrategiex xo ax to protest
themxelvex againxt their sompetitorx. More impor-
81
tantlμ, firmx need to underxtand how the Internet
hax tranxformed the intelligense landxsape in the
knowledge-baxed esonomμ. Theμ sould then take
the nesexxarμ xtepx to leverage the Internet to somple-
ment their SI xtrategμ.
There are xeveral avenuex where future rexearsh
maμ be sondusted. Firxtlμ, rexearsh maμ be xpesifi-
sallμ sondusted on how SI from the Internet differx
from the traditional xoursex of SI. Due to itx unregu-
lated nature, there are sonsernx among firmx on the
reliabilitμ of information from the Internet. How doex
management’x perseption of data from the Internet
affest the waμ information ix xieved or uxed?
There maμ alxo be more in-depth rexearsh into the
xignifisant differensex in the waμ the Internet ix uxed
for SI astivitiex between losal and foreign enterprixex,
and how it affestx the performanse of firmx. In addi-
tion, in-depth saxe xtudiex maμ be sondusted to reveal
keμ puxh and pull fastorx xurrounding the uxe of the
Internet for SI astivitiex. Sush xtudiex maμ alxo pro-
vide inxightx into the detailed prosexxex uxed to sollest
and dixxeminate SI data.
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83
Thompzon S.H. Teo ix an Axxosiate
Profexxor in the Department of Desixion
Ssiense and the Direstor of MSs (e-
Buxinexx) at the NUS Buxinexx Sshool.
Hix rexearsh interextx inslude xtrategis
uxex of IT, teleworking, e-sommerse,
adoption and diffuxion of IT, and xtrate-
gis IT management and planning. He hax
publixhed extenxivelμ in international
refereed journalx xush ax Communisa-
tionr of the ACM, Databare, Desirion
Ssienser, Information and Management, International Journal of
Elestronis Commerse, Internet Rerearsh, and Journal of Manage-
ment Information Syrtemr. He hax alxo provided sonxultansμ
xervisex for a number of buxinexx organizationx.
Wing Yee Choo graduate with BBA (Honx.) from the National
Univerxitμ of Singapore. He ix surrentlμ working in a logixtisx
sompanμ.