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This paper examines competence development as a facet of a firm’s dynamics. Proceeding from a “model of competence building” developed in an earlier study, a theory of competence development is outlined, which recommends that competence development should cyclically alternate between competence upgrading and competence renewal. This cycle is subject to various influences, including the firm-specific resource base, the way in which managers perceive competence to create customer value, the level of undesired knowledge diffusion, and changes in the environmental dynamics specific to the firm. Inevitably, the theory of competence development involves some simplifications; yet it’s relevance is underlined by the fact that it stands up to empirical analysis.

Organizational competences are essential sources of competitive advantage and thus are key drivers of competitive strategies for knowledge-intensive companies like automotive manufacturers. In order to cope with increasing market complexity and dynamism, reduced development times, and relentless cost pressures in a highly competitive environment, knowledge-driven companies need to understand how to be proactive in building and leveraging the competences they will need to be successful in the future, especially within their product development activities.

To help managers become proactive in identifying and building useful future competences, the dynamic and systemic perspectives of competence-based strategic management provide a framework for analysis that can help managers to look beyond their organization’s current competences and identify organizational competences that will be needed in the future. Competence theory emphasizes that an organization’s competences are dynamic and constantly need to be updated and reconfigured to adjust to the competitive dynamics of an industry. Any methodology for identifying future competence needs must begin with some means for identifying strategic gaps between the competences a firm has now and the competences it will need in the future. This paper describes a technology and market roadmap-based methodology for forecasting a firm’s future competence needs – the competences a firm will need to start developing now in order to meet expected market demands in the future. The methodology proposed here is applied and, we believe, validated through application to a competence planning process in a German luxury car manufacturer.

Mergers have increased at a fast rate in the last 10 years. Nevertheless, practitioners and consultants point out the low rate of success for mergers. Considering this paradoxical situation, it would appear opportune to question the possibility of developing a specific competence within an organization for carrying out mergers and acquisitions. This research aims to propose a model for analyzing the development of such a competence. This paper presents a study of competence-building according to two aspects: level of recognition by the organization and level of use. The study model defines four forms that competence may take: ad hoc responses, capitalization, institutionalization, and dynamic competence. This model is used for the study of the development by the Lafarge Group of a competence in managing cultural integration after international mergers and acquisitions.

The ability to effectively engage in cross-cultural interactions is imperative for leaders in our increasingly globalized world. Those who possess certain key psychological resources are more likely to engage in cross-cultural interactions successfully. Psychological resources include cross-cultural hope, efficacy, resilience, and optimism, which together comprise cross-cultural psychological capital (CC PsyCap). Previous research has indicated that CC PsyCap predicts cultural competence, yet the pathways underlying this relationship remain unexplored. We examined the relationships among CC PsyCap, engagement in cross-cultural interactions, stress during cross-cultural interactions, and cultural competence. The hypothesized relationships were tested using a sample of 135 undergraduate students (76% female) participating in study abroad programs. Participants completed measures of cultural competence, CC PsyCap, engagement, and stress approximately one month into their study abroad. Structural equation modeling analyses indicate that CC PsyCap and stress influence cultural competence directly and indirectly through engagement level during cross-cultural interactions. Furthermore, the results suggest that CC PsyCap indirectly influences engagement through stress during cross-cultural interactions. We discuss the implications of these results for people preparing to enter cross-cultural environments.

This chapter outlines the challenges that research and practice in higher education have faced in measuring students' competences and learning outcomes. Particular attention is given to the systematic and institutional contexts in Germany. Based on the outlined national and international contextual framework, the Germany-wide program “Modeling and Measuring Competences in Higher Education (KoKoHs)” is discussed in terms of its two central working stages, key outcomes and lessons learned. In particular, the central results of the second phase are presented for the first time and integrated into the current state of international research. Based on this analysis, perspectives for further research on student learning in higher education and implications for practice and policy are derived.

The growing modularization of complex products encourages the division of labor in industry. End product manufacturers outsource production of individual components to large module suppliers, saving on costs in the short term. In the medium term, however, they sacrifice competences. The competitive strategy they choose – either cost leadership or differentiation – determines how this conflict is resolved. This paper examines the shift in competences to module suppliers, and the likely reactions of end product manufacturers, particularly those pursuing a differentiation strategy. The discussion begins at a general level, and then focuses on the automotive industry as an example. The paper derives potential strategic actions going forward based on transaction cost theory and core competency theory, and conducts a content analysis to examine them empirically.

This chapter begins with an overview of the concept of intercultural competence and its fundamental role in our global society. Using examples of inquiry-based learning (IBL) methods as a means to provide interdisciplinary pedagogies that foster learners’ intercultural competence development, this chapter examines innovative approaches to respond to this global community need in the academic context. With a review of interdisciplinary IBL methods, the chapter centers on the following three principal areas: (1) role of IBL and service-learning (SL) in the development of intercultural competence within an interdisciplinary framework, (2) practical examples of how the author implements IBL using cooperative learning strategies and SL into humanities courses that consist of students from various disciplines ranging from health to political sciences for intercultural competence development, and (3) challenges and benefits of SL programs as forms of IBL.

This paper discusses a number of issues affecting mergers and acquisitions (M&A) from the perspective of competence-based management. A new framework for competence gap analysis is developed which can be used to assess important aspects of M&A decisions. The usefulness of M&A is compared with other gap-closing actions. This model is founded in the systems view of the firm as developed by Sanchez and Heene (1996), where strategic gaps perceived by managers motivate actions to change the resource and competence base of a firm. In the analysis process derived from this model, several resource states must be identified and analyzed, especially those critical to competences that are needed to achieve sustained competitive advantages in targeted future markets. This approach to strategic gap analysis is also helpful in evaluating alternative gap-closing actions. In this context, M&A are shown to be particularly appropriate actions to fill numerous and large competence gaps especially with a high degree of interaction between involved resources.