THE ROLE OF ECONOMIC INTELLIGENCE IN ENHANCING THE COMPETITIVENESS AND DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMES): EVIDENCE FROM IRAQ

Abstract

The objective of this study is to examine whether the use of Economic Intelligence (Economic Intelligence or ECi) will lead to an increase in competition and sustainable development for small and medium-sized businesses (SMEs), located in Iraq. The four components of Economic Intelligence which include gathering, collecting and obtaining economic information; processing and analyzing the economic information; providing access to other decision-makers through dissemination of the intelligence; and providing a basis for making managerial decisions by integrating the intelligence into those decisions. A quantitative methodology has been employed to investigate the relationship between Economic Intelligence and competitive advantage/sustainable development of SMEs in Iraq. Questionnaire data was gathered and analyzed from a sample size of 245 with Cronbach's Alpha used as the criteria to measure reliability of the instruments. In addition, Pearson Correlation analysis, and Linear Regression analysis have been utilized to analyze the relationship between each dimension of Economic Intelligence and Competitive Advantage/Sustainable Development. Overall there is a positive correlation between Economic Intelligence and competitiveness and development (r = 0.529, p less than 0.01). Regression results also show a significant positive effect of Economic Intelligence (β = 0.671, p less than 0.001), and the model explains 44.5 percent of variance in competitiveness and development (Adjusted R² = 0.445). This study contributes empirical evidence from Iraq by showing Economic Intelligence is an important organizational strength that helps small and medium enterprises (SMEs) to become stronger and develop better. Results also emphasize the importance of turning economic information into actionable intelligence through analysis distribution and integration at management level.