Construction Of Core Competence Of The Small-and-Medium Sized Manufacture Industries In China

Small-and-medium sized manufacture industries of China have grown to be an essential part especially. The prosperity of the small-and-medium sized manufacture industries is vital to lift national manufacture ability. Given the globalization of economy and the entrance into WTO of China, the small-and-medium sized manufacture industries are faced with great development opportunities and severe challenges. To survive and develop in the fierce market and to grow in strength, the small-and-medium sized manufacture industries must make efforts to innovate continuously and to foster and lift its' core competence, therefore make the industries obtain sustained competition superiority.The paper consists of four chapters. The first chapter is an introduction which presents the background of putting forward the core competence, the basic characteristics of the small-and-medium sized manufacture industries, the necessity of fostering core competence, moreover, which focuses on the striking issues of the national small-and-medium sized manufacture industries in current market competition. The existed striking issues in the small-and-medium sized manufacture industries are summed up as generally lacking of competition, especially, the core competence.Chapter 2 is devoted to some theoretical studies of core competence: developmental origin of the theory definition characteristics component factors and affecting factors of core competence. I think: under certain market environment, it is defined as core competence, if the comprehensive capabilities can make the corporation keep long-term competitive superiority, and can make the competitor have difficulty to imitate (at least in short-term). The component factors of core competence are technology-ability, management-ability and management-organization; and the affecting factors include regulation, knowledge, resource and culture of the corporation. Since C.K. Prahalad andGray Hamel put forward core competence in their paper The Core Competence of the Corporation in Harvard Business Review in 1990,the theory of core competence has been getting unceasing development. Currently, although the theoretical system of core competence isn't perfect, it has gotten most corporation attach importance to highly; moreover, it has been used extensively to lift competition and win competitive superiority.Chapter 3 presents the ways of fostering and lifting core competence of corporation. We elaborate that for fostering and lifting core competence of corporation, one must improve corporation's innovating ability in the fields of regulation, technology, management and culture , Moreover , according to the characteristics of small-and-medium sized corporation in China, we show that Management-First and Technology-Second is the effect strategy of fostering and lifting its' core competence.Chapter 4 examines a case: Dong Yang Valve Limited Corporation's way of fostering and lifting core competence. We analyze the reason for which Dong Yang have gotten core competence. In the conclusion, we emphasize that only if keep innovation sustaining, foster and lift core competence unceasingly, could it obtain long-term competitive superiority, get strength progressively, make itself be ever-developing.