Formulation of hypothesis questions

Both conclusive statistics and theoretical justification of the problem were used in the quantitative phase of the study. Correlation analysis is used as the method for statistical evaluation in this work. This method is used to numerically study the relationship between two or more variables that directly affect the subject of the study. The goal of correlation analysis is to assess the link between selected or randomly selected features that are described by a real process, i.e., competitive intelligence.

Using correlation analysis yields the following results:

1. The degree of correlation between two or more readings is measured and determined.

2. The factors that actually affect the results are selected based on the degree of relationship between the chosen readings.

3. The relationship with unknown readings and features are identified.

If a relationship between two variables is identified, it means that the change of one variable affects the other; variables affect each other in a given period of time. If a correlation based on numerical values is identified, it can be either positive or negative:

• A positive correlation is a relationship between two variables when if one variable increases the other one also increases, that is, a high numeric value for one variable means a high numeric value for the other as well.

• A negative correlation is a relationship between two variables when if one variable decreases, the other one increases, that is, a high numeric value for one variable means a low numeric value for the other.

The importance of the relationships are identified by looking at the resulting factor depending on the variable factor.

The study focused on the interrelationships between CI, communication satisfaction in organisation,

process, the hypothetical issues were supplemented in order to more accurately assess the nature of the problem.

The research explored the relationship between communication satisfaction in the organisation within the context of knowledge-sharing, the CI process and affecting factors.

The model was visualised, and was used to examine the interactions (Figure 6). The theory that underpins this model is based on the awareness that values of organisational culture stimulate communication behaviours, which affect the innovations of the CI process.

Figure 6. Conceptual model

Although scientists, practitioners and the results of a preliminary study conducted in Latvia found that organisational culture has a direct impact on numerous organisational habits, the present study set out to look for relationships that would justify how the CI process is affected by the values of organisational culture (e.g., trust, loyalty), which determine communication behaviour, and circulation of information within the organisation, that is, how assumptions and norms regarding the way by which employees obtain, analyse and share the information, influence the CI process.

Calof and Wright (2008) described CI as a permanent and evolutionary process, through which entrepreneurs can evaluate their existing and potential rivals' behaviour and possibilities in order to maintain and develop their company's competitiveness and advantages. As a result of the process, information from publicly available, generic news sources is used and analysed, transforming it into long-term knowledge, which ensures a company's competitiveness (Blenkhorn & Fleisher, 2005). CI produces

systematic and formal process, top managers are capable of making more well-informed decisions regarding future events (Calof & Dishman, 2008; Gilad, 2003). CI is formed through collection and interpretation of economic information with the aim of foreseeing economic activities. either immediately or in the future, in order to reach individual or collective goals (Levet & Paturel, 2006).

Numerous authors (e.g. Baumard, 1991; Marchand et al., 2000) have repeatedly emphasised that CI does not exist without the involvement of individuals or human resources, that is, without collective dimension. Collective dimension is always associated with the values of organisational culture and organisational behaviour. Organisational culture emphasises the culture of the organisation itself.

Prescott, John and Miller justified the role of culture in CI theory and practice in ‘Proven Strategies in Competitive intelligence’ (2001), evaluating the cultural phenomenon as one of the basic elements of CI, without which it would not be possible to achieve results. Calof and Dishman defined the CI process as consisting of planning/focus, collection, analysis and communication, but asserted that this process is affected by particular contextual influences, that is, organisational culture/awareness and the formal infrastructure available, as well as employee involvement. The main function of communication is to coordinate the activities of system components, provide these components with valuable information and help to explain innovations, making the system process more efficient and growth-oriented, because each individual component is unable to implement what they can implement together (Kreps, 1996).

Previous studies have shown that corporate culture is now judged by many as being a major determinant of company success (Baker, 2002) in terms of performance (Cameron & Quinn, 2011), especially through improved employee morale (Coolican & Jackson, 2007). Understanding the culture of communication provides a guide as to how information will be used. Communication encompasses all communication and information relationships within a company - between supervisors and employees, mutual communication between employees, formal and informal communication, public and private communication, individual and mass communication, personal communication and communication through media. The flow of information can occur in three ways: downward, upward and horizontal (Andrews & Herschel, 1996).

In learning and consultation culture, sales and representatives and their managers might become highly involved in both the collection and evaluation of information (Fleisher & Bensoussan, 2007).

Management must demonstrate openness and an honest interest in upward reports, thereby being capable of providing itself with the necessary information, received in the form of feedback, to efficiently manage the organisation (Byrne & LeMay, 2006). Satisfaction with communication is a multidimensional factor that includes satisfaction with the amount of information received by the employees, the communication climate, the upward, downward and horizontal communication and the attitude of staff towards communication, and is related to satisfaction with work in general (Downs &

Hazen, 1977). The benefit of positive internal communication is greater support from employees regarding implementation of changes in the organisation (Clampit & Downs, 1993). Therefore, drawing on the presented arguments, the following hypothetical question could be posed:

H1. Does a relationship exist between satisfaction with communication in the organisation and CI?

In order to improve information turnover, studies have been conducted on a selection of various communication channels and the perception of information depending on these channels. The question of trust in supervisor and relationship with satisfaction with communication has also been considered. It has been shown that information received from a supervisor is highly appreciated, while trust is an important element of open and direct communication (Byrne & LeMay, 2006).

Several studies have acknowledged the atmosphere of mutual confidence as the cornerstone of knowledge-sharing culture (Figallo, 2002; Cohen & Prusak, 2001). Moreover, some earlier studies regarding habits and conditions of knowledge sharing discovered that the trust culture was the strongest factor that impacted knowledge sharing and-exchanging (Lucas, 2005; Park et al., 2004; Wang &

Rubenstein-Montano, 2003; Sharratt & Usoro, 2003).

Today, in an era of information and technology, the nature of organisational work rapidly varies, making motivational and control approaches increasingly complicated. Work within organisations is more often arranged in mutually dependent teams. Administration cannot control everything; the result of work more or less depends on employees' voluntary engagement and collaboration. Cooperation and confidence are important prerequisites for the work environment.

The level of trust that exists between the organisation and its employees greatly influences the amount of knowledge that flows both between individuals and from individuals into the organisation’s databases, best practices archives and other records (De Long & Fahey, 2000).

As such, the general hypothesis question was formulated, as follows:

H2. Does organisational trust mediate the relationship between communication satisfaction and CI¹? Few previous studies have examined the factors affecting the sharing of knowledge within the CI process. However, as shown by the study previously carried out in Latvia, a possible lack of confidence within the organisational environment could be one of the key factors with regard to increasing the efficiency of CI process.

Some documented studies have also acknowledged a positive correlation between trust and knowledge-sharing (Butler, 1999; Adler, 2001; McEvily et al., 2003; Levin & Cross, 2004; Mooradian et al., 2006;

Darvish & Nikbakshs, 2010; Holste & Fields, 2010; Lee et al., 2010). Moreover, Lin (2007) considered that unwillingness to share knowledge can be highly detrimental to organisational survival. Several studies have shown that people are reluctant to share knowledge, and that this is linked to the social dilemma related to sharing behaviours (e.g. Cabrela & Cabrela, 2002; Ridings et al., 2006).

Renzl (2008) discovered that trust in management increases knowledge-sharing through a reduction of fear of losing one’s unique value and an improving willingness to document knowledge. Analysing the previous studies, Downs and Adrian (2004) found that trust is related to acceptance of organisational values.

Ho et al. (2012) further concluded that trust in the workplace acts as a mediator in enhancing knowledge-sharing behaviour. Relationships between the line manager and the employee are related to the overall performance and results of the organisation (Liden et al., 1993). Confidence in supervisor is positively correlated with the quality of information received from senior management and line manager (Byrne & LeMay, 2006). On the basis of previous research findings, the following hypothesis question was formulated:

H3. Is there a correlation between organisational trust and knowledge-sharing? Scientific sources have shown that there is an assumption regarding trust as a phenomenon, in that trust stimulates transfer of knowledge, which is defined as knowledge-sharing between the source of information and the beneficiary, and thus can be applied (Ko et al., 2005).

H4. Is there a correlation between interpersonal trust and knowledge-sharing? Basaglia et al. (2010) described knowledge sharing as a process whereby individuals mutually exchange knowledge and together generate new knowledge. This is very significant in the CI process, because the aim of this process is the creation of added value to the knowledge necessary for making decisions.

H5. Does trust in top management support knowledge-sharing in the organisation? Trust within the company is evaluated by the accuracy of information received by employees from their direct supervisors. (Roberts & O'Reilly, 1974). For instance, a low level of trust correlates with few details and accuracy of the information (Byrne & LeMay, 2006).

The perceived link between trust and knowledge transfer in the literature is so strong that some authors have even equated trust with knowledge transfer (Sankowska, 2013). Within-organisation knowledge-transfer has been identified as a key factor in successful innovation.

Few studies have examined what exactly increases CI efficiency. Luu studied shipping companies in Vietnam to investigate whether organisational culture, ethics and emotional intelligence influence knowledge-sharing, which in turn enhances CI scanning. He concluded that knowledge-sharing also exerts a positive effect on CI scanning (Luu, 2013b). The results revealed that, in order to perform effective scanning for CI, knowledge should be shared among organisational members, which requires three building blocks: supportive knowledge-sharing, ethics or care and heightened emotional intelligence (Luu, 2013b).

H6. Is there a correlation between knowledge-sharing and CI? Several researchers (Hamel 2007; Senge, 2007) have agreed that the 21st century is based on knowledge, information and innovative economy.