The Core Competences Of Corporation

This thesis probes deep into the theories of core competence of the corporation from a panoramic and systematic point of view. The first part of the thesis focuses on the main theories on the core competence, including the evolvement of the theory of core compentence, the concept, characteristic, form mechanism of core competence, and the influence factors of core competence, etc. Based on the research, the following part studies the practice, such as how to evaluate, how to establish, protect and advance the core competence of the firm. Finally, the research puts forward several suggestions on how to cultivate the core competence of state-owned enterprises aimed at the their actuality. This thesis includes eight chapters:The first chapter mainly reviews and comments the theoretical documents related to the theory of core competence. The theory of core competence studies the essential issues of firm based on the firm resources and capability, so that firm looks as a aggregate of capabilities and the distinctive competence is the hedasping of the firm's competitive advantage. This chapter first comments the evolvement process of core compentece. The theory of divide of the labour, the theory of growth of the firm, the capabilities theory and the resource-based view of the firm advance the theory of core competece. The following study is comments to the capability theory of corporation, which emphasizes the development of 'core competence' ,in particular, summarizes and comments the following five typical genre of core competence theory: the resource-based view of the firm, the technologic innovation-based view of the firm, knowledge-based view of the firm, organization-based view and culture-based view. In the end, this chapter summarizes the contribution and deficient problem of the core competence perspective.Chapter two analyses the connotation, characteristics, essence and different types of core competence. First of all, the thesis defines the connotation of core competence by pointing out that "core competence is the collective learning in the organization which could derive from the process of deploying resource, especially how to coordinate diverse production skills and integrate multiple streams of technologies, which is a dynamic equilibrium system; it is the roots of sustaining competitive advantage, moreover, core competence endowments the firm's nature and boundaries." We should consider six characteristics of core competence as heterogeneous, valuable, derivative, imperfectly imitable, path-depend and dynamic. If we classify the core competence by its differ seedtime, competence can embody three type: the base-competence, sub-competence, core competence. And then, core competence is both organizational capital and social capital. Organizational capital reflects the "technical" aspects of coordinating and integrating production, whereas social capital highlights the importance of social context.The third chapter mainly researches the form mechanism of core competence. The research indicates that absorb, transform, transfer and share of the firm's knowledge are the needed-process when core competence develops. Furthermore, coordination is the key when core competence forms. And we must afford excellent organizational frame, perfect management, powerful technology and effective inspiration in order to create the core competence.The fourth chapter analyses the mainly factors influenced core competence. Synthesizes the views of researchers, this chapter concludes resource, (including human capital, know-how, brand etc), creative capability, technology capability, coordination capability, learning capability and corporation culture as the mainly influencing factors. Thereinto, human capital is the basis of cultivating core competence, entrepreneur is the key factor, creative capability is the precondition of cultivating core competence, coordination is the needed approach of cultivating core competence, the learning ability assures the renew of core competence. As to corporation culture, on the one hand, which captains all the factors, on the other hand, it could enter into the other factors, affecting the factors work.Chapter five discusses the design of the index evaluation system of the core competence. Evaluating core competence is the important portion, while discriminating core competence is the first step of the evaluation. Based on discriminating core competence, considering the influencing factors, this chapter designs five main classes index to evaluate core competence. A series index selected from technological capability, innovation capability, management, marketing and corporation culture make of the evaluation system. We can select the strategy of cultivating core competence through the evaluation.Chapter six analyzes the routes to cultivate, protect, strengthen the core competences of corporation. Generally, firm may use interior methods such as innovation or coordination to establish core competence as well as external methods as merger & acquisition, strategic alliance etc. It is essential to protect and renew core competence because of the losing of core competence and core rigidities. Finally, we can use the cost adavaced strategy and establish learning organization to advance the core competece of firm.Chapter seven studies the application of core competece. Application is the focus of all the management, so this chapter especially studies multiplicate routes: cultivating core product, related-diversification management strategy, merger and acquisition, and virtual corporation. Related-diversification management, merger and acquisition based on the core comptence can accelerate the sustained competitive advantage, while virtual corportation may help enterprise to achieve more performance.Chapter eight discusses the suggestion to establish the core competence of state-owned corporation. First, this chapter points out low level is the actual core competence of state-owned corporation due to the low technology, knowledge, management and rigescent system. So, in order to strengthen the core competence of state-owned corporation, we must transmit the function of government as well as intensify the management of firm.