Study On Organizational Core Competence Based On Knowledge Fermenting

How the company acquires competitive advantage is the thing the academia andentrepreneurs are searching for and practicing. Prahalad and Hamel brought forwardthe theory of Core Competence, which provided a new method for across-the-boardand reasonable explaining the competitive advantage of corporation. Meanwhile, thistheory is pressing and practical sense for our country's company improvingcompetitive capabilities and confronting international competitions. But the theory isno perfect now, especially in practicing. So, this paper hopes contribution in it andinstructing our country's company operations.Organizational core competence has the characteristics of knowledge from itsoriginal and developing. If organization wants to foster its core competence, it mustpay attention to its learning and applying of knowledge in information economy. If itdoes so, it can foster and improve its core competence, adapt to demand of market incontinuous changing environments. The knowledge fermenting is the frame ofOrganizational learning, and means of improving its knowledge bases. Organizationwill take cognizance of huge effect of knowledge in core competence forming bythis research. At the same time, organization can scan its forming of corecompetence by knowledge fermenting, which provides instruction for its corecapabilities improving.Firstly, this paper reviewed origin and development of core competence, andprovided its characteristics of knowledge. Secondly, this paper discussed the theoryof Knowledge Management and Organizational Learning, and point out effect oforganizational learning in forming of core competence. Thirdly, this paper offer theModel of Knowledge Fermenting, try to explain the theory of core competence by it,and put forward meanings of core competence based on it. Fourthly, the paperprovided the frame and index system of core competence based on KnowledgeFermenting, review organizational core competence from view of knowledge byempirical study.By Knowledge Fermenting, organization can view its capabilities. It can searchproblem of forming competence from factors of Knowledge Fermenting, especiallythat is importance to our country's company.