Mitigate cross-market competition caused by the risk of uncertainty and improve firm performance through business intelligence.

ABSTRACT

In the face of various risks and uncertainties including political instability, technological advancements, and natural disasters, businesses involved in cross-market activities are encountering a more competitive environment. This study investigates the relationship between competitive intensity, business intelligence, internal process efficiency, and the performance of small and medium-sized manufacturing enterprises in China. By incorporating the Technology-Organization-Environment (TOE) framework and Dynamic Capabilities Theory, a research model is developed to demonstrate that competitive intensity improves firms' performance through the utilization of business intelligence capabilities and internal process efficiency. Through the use of a structural equation model, data collected from 15 industrial parks in Henan province, China, involving 429 participants, was analyzed. The findings show a positive correlation between competitive intensity and business intelligence sensing capability (both internal and external). The impact of business intelligence sensing capability on the performance of small and medium-sized manufacturing enterprises is shown to be mediated through internal process efficiency. Our study reveals the mediating roles of business intelligence capability and internal process efficiency in improving organizational performance among Chinese small and medium-sized manufacturing enterprises. This research not only fills gaps in business intelligence research from a management perspective but also contributes to the literature on the interactions among competitive intensity, business intelligence, internal processes, and organizational performance. It also sheds light on the relationship between competitive intensity and organizational performance, offering insights for companies involved in cross-market activities. By highlighting the importance of business intelligence capabilities in adapting to environmental influences, this study offers practical guidance for enterprise digital transformation efforts.