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This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in professional service firms.

The research presented is based on an exploratory embedded case study adopting a qualitative interpretive methodology, conducted at a professional service organization. A sensemaking lens was adopted in order to study organizational change processes. Data was collected through semi-structured open-ended in-depth interviews, and analyzed using first and second order analysis, inspired by the methodology used by Corley and Gioia (2004).

We identified four determinants of change recipient sensemaking: professional identification, dominant organizational discourse, equivocality of expectations, and cross-understanding between thought worlds. Case findings indicate that cognitive and affective dimensions of change recipient sensemaking are strongly interwoven in their effect on realizing strategic flexibility.

We contribute to the competence-based strategic management literature by introducing the concept of change recipient sensemaking in understanding the realization of strategic flexibility; by identifying four major determinants in a context of simultaneous change in a professional service organization; and by highlighting the interwoven and mutually reinforcing cognitive and affective dimensions of professional’s process of constructing meaning.

The purpose of this paper is to strengthen the role of management supervision in the competence of management and its support. Competence in organizations consists of the human, social and structural dimensions. It involves controlling explicit and tacit knowledge, know‐how and experiences. Competence‐based management requires the ability to manage, as well as the skills to consider, build, evaluate, support and leverage competence in an organization. The competence and well‐being of a manager needs to be supported.

The study represented in this article is a qualitative comparison and the new knowledge of experienced material has been evaluated. It is done during two periods and based on interviews with public and private managers in social and health services (n=22 and n=12). The data have been analysed through the use of content analysis inspired by the theory and the data.

Management supervision includes dialogue and reflective thinking as features of competence‐based management and its development. It is a strategic method of support for management and at the same time is a part of a manager's welfare. Management supervision as one support system clarifies strategic competence‐based management, gives support to leadership know‐how and helps a manager to feel better at work.

Because strategic competence based management in social and health care organizations is a very demanding and multidimensional function, it needs a lot of support. Management supervision is a strategic method of support for management and at the same time is a part of a manager's welfare. The significance of this method should be emphasized more in the management of social and health services.

This paper presents a model of resources refinement for systematically and comprehensively deriving competence-based competitive advantages. Competence-based competitive advantages support market-based strategies. They reinforce the overall market-based advantages of low costs, product differentiation and minimal cost differentiation at the business unit level and of carrying out tasks jointly in a performance compound at the corporate level. Competence-based competitive advantages also support resource-based strategies by reinforcing the advantages of product innovation skills at the business unit level and transfer of core competences in a performance compound at the corporate level.

This chapter is based on a four-year literature review process that focused on conceptual business management research. A new platform for advancing business management in competence-related ways is compiled using 66 references that contain a population of 84 competence-related business management concepts published in English between the years 1990 and 2002. For the purposes of this study, the home bases of focal firms are limited to the OECD countries. Ex ante, various research traditions were regrouped into eight schools of thought on business management based on resources, competences, knowledge, organizations, processes, business dynamism, evolution, and Porter's frameworks. The eligible concepts were identified via an analysis of 50 journals and books of 18 publishers. The findings reveal that 99 authors have assigned primary or secondary roles to a firm's competences within their 84 concepts across the eight schools of thought. The two schools with primary emphasis on a firm's competences, the dynamism-based school (18 concepts) and the competence-based school (16 concepts), have produced 34 (41%) concepts. The six other schools have generated 50 (60%) concepts: 14 knowledge-based, ten resource-based, ten evolutionary, seven Porterian, seven organization-based, and two process-based concepts. The platform developed in this chapter may help researchers to focus on the most promising areas and ways to produce highly applicable concepts for managing a firm's dynamic business. Some suggestions to this end are put forth: (i) increase future collaboration between scholars, business managers, and business consultants, (ii) advance competence-based concepts primarily along the international business dimension, and (iii) conduct future competence-related literature reviews. The rigorous conduct of future reviews involves the replicable ways of searching, browsing, including or excluding, retrieving, inferring, coding, and presenting the conceptual data.

The aim of this paper is to analyse the staff development and performance appraisal in a Brazilian research centre.

The key issues of this case study are: the main organisational changes which have taken place over the last decades; the aspects of the organisational structure that have either contributed to or hindered competence‐based management; the development of necessary researchers' competences related to main projects and processes and the way of appraising the development of their competences. The analysis of this paper was carried out considering the following phases: strategic planning, specifications of projects and processes, competence‐based management and performance appraisal of researchers.

Although integration was found between the performance measurement and strategic plans defined by the research centre, competence‐based management is still centred on individuals and based on their tasks. The link between researchers' competences and their social context is not considered.

Feedback from the results of research projects and recycling of organisational processes would allow the studied organisation not only to identify the individual competences necessary for each activity, but also to improve the relationship between professional growth and innovation brought about by competitive strategies of companies.

Original equipment manufacturing (OEM) suppliers must identify and communicate competences to ensure that they are successfully translated into competitive advantages. This study aims to explore the competence-based marketing capabilities of suppliers based on competence-based marketing view. It integrates resource-based theory and resource dependence theory to conduct a detailed evaluation of the impact of competence-based marketing capabilities on collaboration development, which is classified as either exploitative or explorative collaboration between buyers and suppliers.

The partial least squares method was used to analyse and find direct support for the authors’ hypotheses based on cross-sectional data from a sample of 116 Taiwanese OEM suppliers.

The results find no support as recent arguments that the marketing of competence would directly affect collaborative relationships in a buyer–supplier relationship. The two mediating roles of relative attention from buyers and relationship learning with buyers were confirmed. The empirical findings indicated that relative attention from buyers partially mediates the relationship between competence-based marketing capabilities and exploitative collaboration development, while relationship learning completely mediates the relationship between competence-based marketing capabilities and two-pronged collaboration development.

This study provides a thorough examination of competence-based marketing capabilities, which have attracted substantial attention from business scholars but empirical research investigating and discussing how suppliers develop new collaborations with buyers is lacking.

Competence-based theory provides valuable insights in a business context characterized by global ecosystems, co-specialization, and asset orchestration. As the unit of analysis shifts from the individual enterprise to the ecosystem, pursuing proper competence building and competence leveraging activities considering both firm-specific and firm-addressable resources becomes a key issue in strategy development.

Based on the original concepts of the competence-based theory, this paper suggests that the competence space can be a useful framework when considering alternative ecosystem strategies. Competence-based theory, emphasizing the simultaneous pursuit of competence leveraging and competence building, provides an important complement to other dynamic perspectives on strategy, such as dynamic capabilities and ambidexterity. The paper also suggests considering the inclusion of aesthetic properties as an important part of competence-based theory.

In this paper we examine some fundamental epistemological issues in building theory for applied management science, by which we mean theory that can be usefully applied in a scientific approach to management research and practice. We first define and distinguish “grand theory” from “mid-range theory” in the social and management sciences. We then elaborate and contrast epistemologies for (i) building “grand theory” intended to be applicable to all cases and contexts, and (ii) building “mid-range theory” intended to apply to specific kinds of contexts. We illustrate the epistemological challenges in building grand theory in management science by considering important differences in the abilities of two “grand theories” in strategic management – industry structure theory and firm resources theory – to support development of conceptually consistent models and propositions for empirical testing, theoretical refinement, and application in management practice. We then suggest how a mid-range theory building approach can help to achieve integration of the two grand strategic management theories and improve their ability to support empirical testing, theory refinement, and application of theory in practice. Finally, we suggest how the competence-based management (CBM) perspective provides the foundational concepts needed to build both mid-range theory and (potentially) grand theory in strategic management that can be usefully applied in management science.

This paper proposes a semi-Beerian frame of reference for designing a business organization as a system with four subsystems and eight modes of thinking and interacting in both offering and resource markets. A systemic organizational competence includes an ability to connect a business unit with its markets. It possesses absorption, attenuation, and amplifier capacities. It guides and re-specifies all technology, embedded knowledge, capabilities, and other resources that together enable a business unit to act in the predefined, emerging, or innovative ways needed for goal attainment. Ex ante, various research traditions were regrouped into eight schools of thought on business management based on Porter's frameworks, resources, competences, knowledge, organizations, processes, business dynamism, and evolution. The findings reveal that various core, distinct, organizational, higher, and lower competences and capabilities play both primary and secondary roles, across the eight schools of thought, within a population of 84 competence-related business-management concepts published between years 1990 and 2002. Most authors do not deal with competitiveness boundary setting and modeling. A new frame of reference points to some viable avenues of producing highly applicable competence-based concepts as four semi-Beerian subsystems (boundaries, models, designs, and actions). Managing a business unit successfully involves eight kinds of explicit and tacit knowledge, situational information, reflections, decisions, models, designs, and interactions. It is proposed that a high degree of systemic advancement is one of the necessary attributes of any competence-based concept that will be proven to be highly applicable in managing a real dynamic business. Thus, competence-based scholars are encouraged to adopt the suggested assumptions, redesign their concepts as one or several semi-Beerian subsystems, and thus advance their school of thought markedly in the future.

A new grouping of the eight schools of thought on business management is introduced. Their advancement is initially assessed with the help of a frame of reference, which is based on the principles inherent in Beer’s viable system model. It is proposed that a high degree of systemic advancement is one of the necessary attributes of any business-management concept that will be proven to be highly applicable to managing a firm’s dynamic business in practice. The first assessment reveals that the systemic advancement of the representative concepts varies a lot as follows. Porter’s chained frameworks (representing 1st Porterian school), Barney’s VRIO framework (2nd resource-based school), Sanchez and Heene’s concepts (3rd competence-based school), von Krogh et al.’s concept (4th knowledge-based school), and Hedlund’s heterarchy (5th organization-based school) are fairly systemic, respectively. Martin’s cascade (6th process-based school) is less systemic. Instead, Hamel’s revolutionary concept (7th dynamism-based school) and Brown and Eisenhardt’s competing on edge strategy (8th evolutionary school) are highly systemic. Thus, some promising ways to advance, in particular, the competence-based school of thought on business management are suggested.