| The core competence perspective suggests that a large part of the explanation for organizational success can be found in the concept of core competence, namely that firms which pursue a strategy of building on specific competencies may develop unique, inimitable skills which will provide the foundation for competitive advantage. Since its emergence in the early 1990s, the notion of core competence as a means to competitive advantage has intrigued both managers and academics. Since that time, there has been considerable writing on the subject of core competence, yet thus far researchers have struggled to progress from interesting ideas to what could be considered a cohesive theory. The main principles necessary for developing what could be considered a theory of core competence remain poorly defined. Furthermore, a model including causal variables, and testable hypotheses stemming from such a model, has yet to emerge. The goals of this dissertation are to make progress on these fronts: (a) to delineate the main principles of a core competence framework, (b) provide a definition and measure of the core competence constructs, (c) present, test and validate a model of core competence, and (d) develop the practical implications of such a framework. This dissertation represents the first empirical test of a core competence model, and seeks to address the limitations of the field and to further our understanding of the role core competence plays on competitive advantage. A survey of CEO's, VP's and General Managers, members of the American Production and Inventory Control Society, was used to accomplish these goals.; In the survey, data was gathered from 79 different electronic and metal fabrication firms operating in the United States. The main findings indicate that 12.4% of the explained variance in firm performance can be attributed to a strategic competence exhibiting certain core characteristics. Firms which can identify a competence, which this research has called a strategic competence, that is rare, extendible and not based on specialized durable investments, enjoy higher levels of performance than firms which don't. While the core criteria of customer value was inconclusive, future inquiries must investigate the importance of this core construct. |
