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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.

The purpose of this paper is to outline a model that is conceptually and empirically applicable by practitioners in contexts extending beyond mere core competence identification.

This paper presents a conceptual review of a model.

This paper demonstrates that the associated concepts (competence, capability, and resources) have characteristics that differ both conceptually and empirically. The findings also indicate that competencies are central to core competence matters; it is possible to distinguish them analytically by three criteria. Furthermore, the notions of hierarchy suggested in previous research could not be verified which implies that the associated concepts all reside at the same hierarchy level.

The findings advance core competence theories that better serve the needs of practicing managers and consultants, by initiating a specific research agenda in conceptual and empirical reviews and discussions. By proposing a model, the study provides a point of departure for core competency research that goes beyond matters of identification.

The dissimilar characteristics of the associated concepts offer great opportunities to core competency management, by means of the different influences they have on core competencies. Their influence makes organizational change and rejuvenation not only comprehensible, but also manageable. This is of particular importance to organizations that need ongoing renewal of core competencies, for example, when facing dynamic business environments. Competence improvements manage and change core competencies; capability supports reinforce and create structure before, during, and after a change process; resource utilizations are operative, and need daily attention.

The paper initiates a new research agenda for core competency matters by acknowledging specific features of the concepts associated with core competence. This makes a significant contribution to the existing literature in terms of practical and scholarly applicability.

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.

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.

In order to elaborate the concept of resources (a key component of the well-established resource-based theory of the firm) this paper concentrates on exploring and elaborating the associated concept of competences, in particular distinctive and core competences. This exploration includes an examination of the extant literature, alongside and in parallel with, an extensive body of action research undertaken over 15 years and with 44 top management teams engaged in strategy making. As such the concepts are scrutinized both in terms of their theoretical underpinnings as well as their impact on practice. The research reinforces the view that distinctiveness emerges most powerfully from the identification (or creation) of unique bundles or combinations of competences and that effective and meaningful core competences can be identified from understanding and refining the links between competences and organizational goals. The resultant conceptualization of the systemic competence/goals structure emerges from the interaction of theory and practice.

The first part of this paper discusses why and how organizations join collaborative arrangements in transforming business sectors. In order to address this research question from an organization–environment co-evolution perspective, the authors begin with working out a respective framework for analysis founded on competence-based theory under the umbrella of market process theory. The starting of point of the investigation are results from comprehensive qualitative research conducted within the currently highly turbulent German healthcare sector. Embedded into an interactive research design, the fieldwork reveals a taxonomy of three reasons to cooperate in volatile environments: (1) closing resource and competence gaps in so-called “gap-closing alliances,” (2) preparing for unexpected developments in so-called “option networks,” and (3) intending to exert influence on the relevant business environment in so-called “steering alliances.” Detailed findings and particularities for the field of competence research are briefly summarized. They emanate especially from an evolutionary angle and include timing (reacting adequately to strategic windows in the market), historicity, path dependencies (on both the firm and market/industry level), and an evolutionary interpretation of resource/competence specificity.

The central research question in the second part of the paper is whether and how competence-based management of alliances is applicable to the education sector and for deriving respective management implications. For this reason, an exploratory case study is conducted of the German MBA program “Net Economy,” featuring innovative teaching methods like blended learning arrangements, multimedia case studies, and transnational learning processes in an international learning network.

Questions regarding the internationalization of enterprises have been the focus of scientific studies for several years now. Many authors to date, however, still point to the fact that there is a current lack of an acceptable model for research into the internationalization process. At present, with the Scandinavian School, the GAINS approach, and the process trilogy (at least) three different approaches are vying for predominance, where evolutionary and revolutionary process interpretations seem to contradict each other. Since there is empirical proof for both approaches, reconciling these is currently difficult. Within this context, the objective of this discourse is to contribute to shaping corporate internationalization process theory with the resource-based and the competence-based views by rectifying several current deficits. The approach is deductive in order to circumvent the problems associated with inductive theory development that result when using the Scandinavian School and GAINS approaches. Secondly, the approach is economically substantiated in contrast to predominant non-economic interpretations. Finally, this approach makes it possible to formulate hypotheses that do not contradict previous findings on the internationalization process. Both evolutionary and revolutionary internationalization processes can be explained on this base.

As an answer for the limited growth potentials of diversification and internationalization, services became increasingly important for industrial firms in recent years. Based on existing and established business concepts, companies explore new segments in their traditional value chains beyond traditional market penetration strategies: they pursue service transition strategies to open up new sources for growth, even in markets that do not promise great expansion potential. Our paper addresses the issue of economies of scope of service transition. In this context, we first explore the question, to what extent the insights about product diversification strategies from physical goods sectors can be transferred to the service sector. Using competence-based considerations on diversification we focus on dynamic economies of scope, whose central idea is exploration and development of new resources rather than the static exploitation of existing ones. Furthermore, we integrate the largely neglected issue of how the phenomenon of service diversification depends on the industry's life cycle stage. In a small empirical study of the German mechanical engineering industry we demonstrate that diversification steps into services require a shift in the resource and competence base of firms. Using a dynamic perspective, we construct a conceptual framework for analyzing and explaining the advantages of service transition strategies. The developed model describes a service diversification trajectory and points out that the establishment of a profitable service business requires the exploration and development of competences and adequate organizational structures.

The purpose of this study is to demonstrate that Strategic Enterprise Management (SEM) and Business Intelligence (BI) have the potential to integrate management decisions vertically through an organization’s hierarchy. This study also aims to present a design theory framework and build a model dimension using eight principles serving as mid-range theories.

This study uses a design science perspective to posit how organizations can successfully implement SEMBI (a union of SEM and BI). This study then completes the design theory by building the method dimension using two principles. Finally, the study presents testable hypotheses for the theory and an evaluation using stakeholder attitudes and judgments as proxies for objective measures.

In the search for a prescription for SEMBI success, this study finds that the notion of the Capability Maturity Model (CMM) is a good artifact with which to organize the principles the authors are seeking. CMM has since been adapted to suit different contexts by incorporating relevant principles from those domains. Hereafter, this study refers to SEMBI–CMM as the adapted solution for SEMBI's success.

This study coins and uses the term SEMBI to represent the union of SEM and BI. This term retains its distinct identities and principles and forms a holistic and integrated view of SEM and BI implementation strategies. In an effort to advance this line of research, this study employs a design science perspective to address the question of how an organization can successfully implement SEMBI.

By integrating the resource management perspective and the optimal distinctiveness perspective, the purpose of this paper is to explain how firms configure their managerial ties and competences to identify entrepreneurial opportunities.

Using survey data collected from 238 firms in a transition economy, this paper tests a model of firms’ exploration and exploitation competences under which managerial ties promote or constrain opportunity discovery.

The paper finds that managerial ties are positively related to opportunity discovery. More importantly, competence exploration strengthens the impact of business ties on opportunity discovery, whereas it weakens the impact of political ties. On the contrary, competence exploitation strengthens the effect of political ties on opportunity discovery, whereas it weakens the impact of business ties.

First, the findings enrich the social network perspective of opportunity recognition by linking managerial social ties to opportunity discovery in the context of a transition economy. Second, this paper adds to current understanding of the resource management perspective and the optimal distinctiveness perspective by exploring the fit between different managerial ties (business ties vs political ties) and different competences (exploration vs exploitation) in contributing to opportunity discovery.