On The Core Competitiveness Of Commercial Banks In China

Put forward by C.K. Prahalad and Gary Hamel since 1990, core competence theory has been developed into several schools as follows: school of resources, school of technology innovation, school of organization, school of knowledge. This article analyzes the core competence of Chinese Commercial Banks based on the school of knowledge. The reason that I choose the school of knowledge is that I think the core competence is not a simple kind of resource or technology rather than the core competence based on knowledge capital, which is not occasionally and decided by two points inevitable as follows.First, in terms of the trend of the development of the core competence, the development of the core competence is characterized by knowledge. With the development of times and the advancement of science and technology, the key technologies, resources and processes which consist of the enterprise's core competence are considered traditionally to be imitated easily. However, the knowledge system of enterprises with complicated behavior which is institution, systematicness and long term can not be imitated and provide huge value and the scope of economy for the core competence of enterprises.In the light of Chinese Commercial Banks, the special nature of the commercial banks decides the banks' core competence with the characteristics of knowledge capital. The commercial banks are of high knowledge -intensive and its business with the commercial banks special nature of risk control. So it is necessary for the commercial banks to have strong ability of organizational coordination and balance if they want to combine profit, security with mobility perfectly. Obviously the ability is the enterprise's knowledge capital, what is more, with the high mobility of the banks' customers, the tide of financial innovation running high and the development trend of the commercial banks with overall abilities and so on , all these decide the characteristics of knowledge capital of the core competence of the commercial banks .The core competence of the commercial banks is knowledge capital which has characteristics of value creation, difficult imitation, extension and insisted learning. According to the report of OECD, enterprise's knowledge capital includes five aspects,that is, human capital, technology capital, organization capital, customer capital and social capital. The knowledge capital served as the core competence of the commercial banks is the most essential and the most important content, which is internal. Therefore, the key factors of the core competence of Chinese commercial banks based on knowledge capital mainly include core staff competence based on human capital, core innovation competence based on technology capital and core organization competence based on organization capital.After the contents of the core competence of Chinese Commercial Banks was elaborated in detail , the article compared the core competence between Chinese Commercial Banks and foreign commercial banks with the aim of analyzing the reasons , seeking for the distinctions , getting the inspirations and putting forward methods for improvement . At last, the article, according to Chinese national conditions, provides comprehensive measures and road to choose form for China to cultivate and improve the core competence of Chinese Commercial Banks.