Research On The Enterprise's Core Competence Based On Path Dependence

Since the concept of core competence was put forward in 1990, more and more enterprises began to apply corporate competence theory to guide their strategy. There is an increasing recognition that enterprises must have their own core competence if they want to win competition and obtain huge profits. It is characterized by value, uniqueness system and extension, and has five basic elements such as management ability, technology ability, organization ability, regulation and enterprise culture.This thesis adopts path dependence theory to research core competence. Path dependence refers to one system with positive feedback mechanism, if an external occasional event is adopted, this system will follow certain path to evolve. What is more, on this condition, this system is difficult to be replaced by other ones, even if they are better. The reasons why technological path dependence occurs include initial state of the market, the increasing return of the market, accidental historical events, positive network externalities, the cost of conversion and learning effects, etc. After discusses core competence's path dependence, this thesis explores some ways to develop the core competence, such as establishing right strategy, promoting technical and management innovation, strengthening HR development, molding excellent organization culture and learning organization. This thesis also attempts to offer some ideas to lock out these path dependences, including enterprise's strategic behavior, enterprise's heterogeneity and development margin, entrepreneur's innovation, introducing the external shock.The thesis is divided into 4 main parts. Firstly, reviews recent thories, explores the process of path dependence, the mechanism of lock-in, the feasibility of path breakthrough and path development of every element of core competence. Then put forward some measures to develop core competence and ways to break the path dependence. At last, Hunan Jiuzhitang's core competence is researched from the view of path development as a case, and puts forward some measures for Jiuzhitang's core competence development based on path dependence.The writer hopes that the study can further the theory of core competence from the view of path development and promote its research, and expects this thesis will provide valuable ideas for enterprises to make up and carry out core competence strategy efficiently.