Research On The Developing Mechanism Of Corporate Culture And Core Competence

Since the article of "the core competence" which was brought out in Harvard Business Review by C ?K ?Prahalad and Gary Hamel brought forward the concept of core competence, it has been noticed by the academic and management and has became the focus in the field of enterprise strategy. But there hasn't been a consolidated conclusion to the definition and intension of core competence so far. The existing theories always put emphasis upon the value of intellectual assets, pay attention to ready resources and learning-type organizations for obtaining knowledge better and ignore the effect of corporate culture especially values on core competence's forming & evolving process.What the paper wants is to study the core effect of corporate culture. On the basis of studying several opinions of different schools, the paper puts forward the views below: all competences root in enterprises' efficient collocating and managing the essential materials(resources), while the efficiency(competence) is restricted by organization structures of enterprises. But it is corporate culture that selects and stimulates core competence to form and grow in the competence aggregate. Core competence is shown to be an insight into market changes in future and an excellent implement competence in which the former helps companies in supplying the needed goods to customer continuously and the latter promises companies to do it. On one hand, the open and radiative culture benefits to gathering and exchanging information which helps to nurture the insight, while the centralized and consubstantial culture benefits to the harmony and consolidation of organizations which helps to nurture the implement competence, on the other hand, corporate culture especially core values have an effect on the selection and formation of potential core competence. Once core competence comes into being, it shouldn't be fixed even if it will be relatively steady in a long period. It always evolves to reply toy.the fierce competition in a dynamic circumstance.The core competences of different enterprises with the similar conditions of resources and systems will evolve in different way on account of the difference between their culture and core values. Under the pressure of environment change and company self-reformation, corporate culture is changing subtly: culture affects enterprises' obtaining resources and adjusting systems while the feedback on culture affects its self-improvement which causes the differences of cultures and values. The difference of culture will lead to the difference of perspective and strategy goal and the difference of selection and affirmation of strategic resources. At the same time, it will have further effects on the adjustment and reformation of organizations and systems. All above direct core competence evolving. The paper tries to establish a developing mechanism of culture and core competence which is of great importance for trans-culture management to nurture core competence with specific objective and to enhance the competitive advantages.