Purpose – This study aims to examine the impact of competitive intelligence on competitive agility, the impact of competitive intelligence on dynamic managerial capability, the impact of dynamic managerial capability on competitive agility, and the mediating role of dynamic managerial capability in Bali small and medium enterprises. Design/methodology/approach – This study was conducted on small and medium enterprises in the Province of Bali using an online questionnaire distributed to 396 firms drawn from the provincial sampling frame; 164 valid responses were obtained and analyzed using variance-based structural equation modeling with a partial least squares approach. Finding/Results – The findings show that the research model is statistically acceptable and that all proposed direct relationships are positive and significant. Competitive intelligence has the strongest effect on dynamic managerial capability, dynamic managerial capability has a strong positive effect on competitive agility, and competitive intelligence also has a direct but weaker positive effect on competitive agility. Originality/Value – The study’s novelty lies in identifying dynamic managerial capability as a plausible cross-sectional managerial pathway linking competitive intelligence with competitive agility. The partial mediation pattern supports a differentiated capability process while avoiding causal claims, given the single-informant, single-wave design and the possibility of reciprocal or common-method influences. These findings imply that Bali small and medium enterprises should not rely on information gathering alone, but must strengthen managerial capability to convert intelligence into rapid and flexible competitive action.
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