Essay about Core Competence for Sustainable Competitive Advantage

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IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 49, NO. 1, FEBRUARY 2002

Core Competence for Sustainable Competitive Advantage: A Structured Methodology for Identifying Core Competence
Khalid Hafeez, YanBing Zhang, and Naila Malak
Abstract—Core competencies are the crown jewels of a company and, therefore, should be carefully nurtured and developed. Companies can determine their future business directions based on the strengths of competencies. However, because generalized terms such as resource, asset, capability, and competence are not clearly explained in connection with competence theory, these posing difficulties in understanding many contemporary management concepts. In this paper, we provide a summary of the recent
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It is argued that firms are homogeneous in their stocks of assets and capabilities. Therefore, the tactical maneuvring of external market forces forms a major factor in attaining competitive advantage. A limitation of Porter’s five forces model [2] is that it is unable to address intellectual capital/property as a determinant of differentiation between business success and failure. In recent years, globalization trends and increased market competition have forced companies to look into other means by which they can further increase their competitive edge. For example, concepts have emerged encouraging management to strategically exploit those resources and capabilities, which are unique in
Manuscript received July 2, 1999. Review of this manuscript was arranged by Department Editor B. V. Dean. K. Hafeez and Y. Zhang are with the School of Computing and Management Sciences, Sheffield Hallam University, Sheffield S1 1WB, U.K. (e-mail: K.Hafeez@shu.ac.uk). N. Malak is with the Research and Business Development, Sheffield Hallam University, Sheffield S1 1WB, U.K. Publisher Item Identifier S 0018-9391(02)01592-1.

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0018-9391/02$17.00 © 2002 IEEE

HAFEEZ et al.: CORE COMPETENCE FOR SUSTAINABLE COMPETITIVE ADVANTAGE

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TABLE I COMPARISON OF THE CONTEMPORARY STRATEGIC MANAGEMENT APPROACHES

differentiation to which resource is a

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