The competence-based perspective shares with the resource-based view the notion of the fundamental importance of an organization's resources in its competitive outcomes.1 In his paper “Probing into the nature of resources: Sustainable advantages and appropriable rents in the U.S. motion picture industry,” Jamal Shamsie investigates the sustainability of the competitive advantages that strategically important resources can bring to a firm, as well as the appropriability of the economic profits (rents) that can be derived from the uses of resources. To this end, the paper develops a classification of resource types based on the nature of a resource's ownership and control. Shamsie studies the U.S. motion picture industry to assess the degree of sustainable advantages and appropriable rents that can be generated by three types of resources: contracted resources, owned resources, and embedded resources. His findings suggest that in the subject industry both sustainability and appropriability are likely to be low for contracted resources such as top-rated stars and directors, while the greatest potential for sustainability and appropriability attach to embedded resources that accumulate firm-specific knowledge and learning in the development and marketing of various film genres.
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…
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.
For an enterprise, the competence of human resource is more important than the intellect or the basic quality of human resource. This paper aims to present a competence appraisement model of human resource in an enterprise.
The paper puts forward the appraisement index architecture of enterprise human resource competence on the foundation of adopting the concept and models of competence, and establishes a general model of the enterprise human resource competence appraisement.
The results obtained in this paper provide a foundation to establish a relatively reasonable and efficient enterprise appraisement system of human resources.
The research offers information about the enterprise appraisement information processing system of human resources.
This paper aims to produce a justified, generic, pictorial architecture of the relationships between resources and competences within firms. It begins by providing definitions of the nature, scope and relationships between resources, capabilities and competences from the resource and competence literatures. In so doing, theory is refined and a linked resource and competence architecture is developed. The architecture distinguishes between high‐level competences that customers recognize, for example fast product delivery, and competences that support high‐level competences but are less visible customers, like competences in rapid knowledge acquisition and deployment. An empirical example is then used to illustrate how the architecture enables the construction of structured pictures of connected competences and co‐ordinated resources within a manufacturing business. Finally, the architecture is critiqued and its value for managers in structuring competence performance improvement activities is discussed.
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 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…
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.
Despite the potential for operations management to be a competence‐based discipline, it is not clear how practical the construct is in ex ante operations strategy…
Despite the potential for operations management to be a competence‐based discipline, it is not clear how practical the construct is in ex ante operations strategy formulation or how useful it is as a critical lens on operations theory. This paper develops a preliminary model of competence as a transformation process, combining resource and activity inputs into operational processes that result in specific competitive performance outcomes. Empirical evidence from three aerospace manufacturing case studies offers an opportunity to explore the conceptual and practical implications of the model. Three conclusions are highlighted: the need for a strategic (re)conceptualisation of operational resources and processes; recognition that any practical operations strategy needs to continually reconcile ambiguous internal and external priorities; and concern over the potentially dysfunctional effects of competence analysis.
The understanding of strategic marketing has evolved to anintegrated part of market‐oriented business policy. Subsequently,marketing and management concepts have become…
The understanding of strategic marketing has evolved to an integrated part of market‐oriented business policy. Subsequently, marketing and management concepts have become even more closely related. Recently, the “competence‐based perspective” added an innovative approach to strategic management concepts. It suggests that competitive reality requires a new thought and action orientation in order to reach competitive advantages. Examines the role of business‐to‐business marketing within the competence‐based view of strategic management. Summarizes the main theses of the competence‐based view to provide a basis for the development of a competence‐based marketing model. Proposes a practicable framework to strategy formulation in marketing management.
This paper aims to address the limited development of techniques to analyze firms' internal sources of competitive performance. It seeks to enhance the contribution of the…
This paper aims to address the limited development of techniques to analyze firms' internal sources of competitive performance. It seeks to enhance the contribution of the widely diffused value‐rarity‐imitability‐organisation (VRIO) model to practical strategy making.
The paper draws on the resource‐based literature to assemble an integrated set of steps that evaluate a firm's resources and competence.
The paper proposes an expanded version of the VRIO model that represents resource and competence as a conditional outcome from attributes and asymmetries present in the firm. It shows how the conditions convert asymmetries between weaknesses, missed opportunities, rigidities and resources.
By synthesising resource‐based theory in a practice‐relevant form, the paper delineates a concrete set of practices that relate to firms' dynamic capability to manage resources and competence.
The paper details an approach to resource and competence analysis that leads directly to decisions about how a firm can manage the resources in question. The model gives a central role to the conditions under which a firm's attributes give rise to a resource or competence, and hence suggests active management of these conditions.
The paper presents resource‐based theory in a form that focuses on the doing of strategy, in contrast to the traditional focus of this literature.