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This volume begins with a literature review of the different approaches to the management of competences in interorganizational relations. In Frédéric Prevot's paper, “The management of competences in the context of interorganizational relations,” the existing literature is structured in a two-dimensional model based on the nature of the relationship (cooperation or competition) and the actions taken on the competences (leveraging or building). Four objectives for the management of competences in the context of interorganizational relationships are thus derived: (1) sharing of competences, (2) protection of competences, (3) creation of competences, and (4) acquisition of competences. Each competence objective then requires specific management approaches to achieve.

Using the framework of the philosophy of science, this chapter explores some basic theoretical issues that must be recognized and addressed in developing theory within the competence perspective. We first develop an overview of resource-based and competence-based research to highlight some fundamental theoretical issues. We then identify a set of basic assumptions for conducting a research program focused on development of a “competence-based theory of the firm.” Working from these basic assumptions, we argue for a shift in the epistemological aim of competence theory development from explaining market success to explaining firm competitiveness. We explain how such a shift theoretical focus and approach can remedy the problem of circular reasoning often observed in resource-based thinking that tries to contribute to the competence literature.

In this research we explore the issue of “competence management,” as usually defined in the corporate vocabulary, mostly in the human resource (HR) function, and more particularly of “strategic competence management” (long-run management of competences which are critical to achieve strategic goals). We try to show that competence management is a dynamic organizational competence. We analyze it in the case of a large European telecommunications company, France Télécom, in the years 2001–2003. The telecommunications sector is characterized by quick changes in technology, markets, and industrial structures, and therefore a high level of uncertainty. It is also a high-tech activity, based upon continuously evolving personal skills which require long education and training times. There is an apparent contradiction between uncertainty, which makes planning difficult, and the necessity to plan new competence development with long response times. This contradiction cannot be solved if competences are defined in a static way, as structural attributes of actual or potential employees or groups of employees. The strategic competence management issue must be considered rather in the frame of a dynamic, process-based view, which involves an on-going collective and reflexive activity of actors themselves to define and manage their competences. We tested process-based competence management in the case of two telecommunication domains: high bit-rate ADSL telecommunications and Internet services to small and medium businesses. The reflexive and collective competence management process had to be instrumented with instruments which did not aim at an accurate representation of competences as objects, but rather tried to offer a meaningful support for actors’ continuous (re)interpretation of present and future work situations in terms of critical competences. As a conclusion we extend the example of competence management instruments to the general issue of management instruments, in the context of uncertain and dynamic environments. Information-based theories of instruments view instruments as specular representations of situations, which allow optimal or satisficing problem-solving procedures. But when business environments continuously evolve and resist prediction, we must move toward an interpretive view of management instruments as meaningful signs, which help actors to make sense of the situations in which they are involved. Their relevance is not an absolute ontological truth but the practical effectiveness of their context-situated utilization and interpretation. A semiotic and pragmatist theory of activity and instruments can then be proposed.

The goal of this chapter is to explore the requirements modern companies expect of HR professionals’ competences.

Departing from the widely acknowledged HR competence studies of Ulrich and associates, we extended them with the continuous learning competence profile and HR professionals’ individual job performance. The empirical study is built on open interviews with HR leaders of ten large Dutch companies.

The study offers a new set of HRM competences. This set includes six HRM profiles: Business Focus, Learning Focus, Strategic Focus, HR Technology, HR Delivery, and Personal Credibility. Several contingency factors are thought to play a role in supporting these HRM competences: company culture, strategy, size, sector, scope, and position of HR professionals.

Based on these contributions, we recommended conducting a quantitative study to gain understanding of the relevance of the individual HRM job performance and to find associations between the HRM competences and the individual HRM job performance.

The focus of this chapter is a combination of HRM competences and the individual job performance of HR professionals.

The aim of this paper is to advance applied theoretical knowledge on international business (IB) ideation by designing the managing of such ideation as three recursive, multi-competence-enabled systems.

The core principles of Beer’s (1985) Viable System Model are adopted for this system design task. The Viable System Model consists of five interacting sub-systems that can support a viable IB unit.

The contribution of this design of the three recursive, multi-competence-enabled systems will be three novel pieces of the applied theoretical knowledge about recursivity and competences that advance the management of an IB unit as a whole and in particular that of IB ideation.

For future research, I initially propose that the IB ideation (unit) is being managed the more successfully within its focal contexts, the more extensively the IB ideation is designed as a set of three recursive systems enabled by respective multi-competences. Moreover, the 3-system design may serve as the frame of reference for those compatible theorization initiatives vis-à-vis viable IB ideation management that interested competence-based management scholars will conduct in the future.

I put forth the three templates (coupled with Functions 2–3) to facilitate the enhancement of the IB ideation practices among leading, innovative firms and especially by the pioneering management of IB (ideation) units.

Part I of this chapter applies the principles of the philosophy of science and the derived scientific method to analyze the foundational concepts and core proposition of the Resource-Base View (RBV) as popularized by Barney (1986, 1991, 1997). This analysis identifies seven fundamental conceptual deficiencies and logic problems in Barney's conceptualization of “strategically valuable resources” and in Barney's VRIO framework for identifying strategically valuable resources that can be sources of sustained competitive advantage. Three problems – the Value Conundrum, the Tautology Problem in the Identification of Resources, and the Absence of a Chain of Causality – relate to the RBV's and VRIO's failure to provide an adequate conceptual basis for identifying strategically valuable resources. The Uniqueness Dilemma, the Cognitive Impossibility Dilemma, and an Asymmetry in Assumptions about Resource Factor Markets result in an inability of the VRIO framework to support identification of resources that can be sources of sustained competitive advantage. More fundamentally, the core proposition of the RBV – that resources that are strategically valuable, rare, inimitable, and organizationally embedded are sources of sustainable competitive advantage – is argued to result directly in the Epistemological Impossibility Problem that precludes use of the scientific method in RBV research. This chapter argues that until these conceptual deficiencies and logic problems are recognized and remedied, the RBV – in spite of its current popularity – is and will remain theoretically sterile and incapable of contributing in any systematic way to the development of strategy theory.

Part II of this chapter then suggests how foundational concepts developed within the competence perspective on strategy provide essential remedies for the identified deficiencies and problems in the RBV – and thereby provide a more conceptually adequate basis for representing the nature of firms in the scientific study of their interactions and competitive outcomes.

The paper applies the concept of dynamic capabilities to the field of high reliability organizations and particularly to EU Taranis 2013, an international civil protection exercise.

The paper draws on the multi-level model by Wilkens et al. (Wilkens & Gröschke, 2007; Wilkens, Keller, & Schmette, 2006). In this model dynamic capabilities are based on four dimensions of competence at individual, team, and organizational level. In a survey-based analysis, the paper identifies the four dimensions of competence at the individual and team level in high reliability organizations at civil protection exercises.

The paper demonstrates that Wilkens et al.’s model of four dimensions of competence for analyzing dynamic capabilities can be well transferred to the field of high reliability organizations.

Transferring the competence model of dynamic capabilities to high reliability organizations has created a new field of research. The survey conducted on top executive level symbolizes a pre-test for further empirical studies in high reliability organizations including members on all organizational levels. Further research may also explore particularities of the participating teams and their frames of reference in international civil protection exercises – partly networks, partly bureaucratic systems, etc.

The concept of dynamic capabilities is highly relevant for civil protection, particularly in terms of cross-situational competences. Competences at team level are of crucial importance, because the handling of emergency cases is largely based on the cooperation of teams stemming from different rescue organizations.

Many everyday situations involve the performance of a task and the inference of competence from the results. Here, we focus on situations in which two or more persons who differ on status (e.g., sex category, skin tone) perform a valued task with equivalent, objectively judged results, and yet are not granted equal competence. We examine the conditions under which such a conclusion derives from the use of different standards for each status level.

We review and assess the findings of all the 17 social psychological experiments completed to date and designed to investigate the hypothesis that the lower a person’s social status is perceived to be, the stricter the competence standard applied to him or her.

We find substantial support for this hypothesis, but there are also factors that either moderate (e.g., qualifications level) or even reverse (e.g., participant’s sex category) such link. Of particular interest among those factors is whether competence is measured directly or indirectly. For example, we found overall that the specific question about competence often restrains the use of double standards, whereas the wider questions (e.g., about suitability) are more likely to allow that practice to emerge.

We also identify and expand interventions from three different research traditions designed to deter bias, and propose ways of applying them to block double standards in the assessment of equivalent performances. The interventions involve (1) increasing assessor’s accountability, (2) increasing similarity across the performers, and (3) disrupting the often taken-for-granted association between higher status and good performance – as well as the corresponding link between lower status and poor performance.