Research And Development, Knowledge-based Enterprise Core Competencies

The sustained competitive advantage of enterprises is regarded as the result of the distinctive competence, which makes the enterprises doing better than their rivals, that is so called core competence. With our country's entry to WTO and the economy globalization, the corporation in China faces great competition and challenges. So it is urgent for Chinese corporation how to develop the core competence. This article analyses the development of the core competence from the knowledge aspect. Where do the competitive advantage come from? The theory of firm based on knowledge think that it comes from the unique knowledge of the firm, which is difference from the answer of the theory of core competence. Why dos the difference occur, which is the foundation that the article think there is some relationship between the knowledge and the core competence.The author analyses the core competence on the basis of the theory of the knowledge and the theory of the firm based on knowledge, which becomes the theoretic foundation of the research on the development of the core competence. The essence of the core competence is the firm's knowledge, especially the unique tacit knowledge. The course of the firm's management is also the exchange and use of the knowledge. The knowledge becomes the core competence after undergoing four stages: socialization, externalization, combination and internalization, which is the model that the core competence come into being. The development of the core competence needs inner guarantee, which includes the strudiure of the organization, human resource, leadership and culture. Knowledge alliance and knowledge management is the basic methods of development of the core competence.In the last chapter, the author makes a positive research on Changsha Han Wei Building Auto-Control Equipment Co.LTD. Nowadays, Han Wei is a new and high technology enterprise rising in the knowledge economy. There are many questions in the course of the development of the core competence in Han Wei. The author affords the relative suggestions on the base of the real conditions of Han Wei and the theory of this article.