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This paper shows how business suppliers set up processes allowing the translation of their competencies into value for the customers. As such, this paper seeks to complement the dominant view in which competencies are seen mainly as valuable for the firm owning the competencies but not for that firm's customers. In so doing, the paper seeks to contribute to two bodies of research: the notions of core competencies in strategic management and of value for customer in business marketing. These two bodies of research interact infrequently thus far, leaving the question of how value is transferred unanswered. This question is relevant because competencies are immaterial, tacit, and non-tradable assets. Hence, the research question underlying the present paper becomes: How can competencies translate into valuable outputs and be made accessible to the customer? To answer this question, a qualitative approach is used that involves a multiple-case study analysis aimed at exploring the competence-based process of value supplying in business markets. Specifically, this paper suggests the following propositions: (1) Competence-based value analysis, where suppliers anticipate customers’ competence needs, require an end-market orientation. (2) Competence-based value creation implies an accumulation of know-how that overlaps with customer competencies. (3) Competence-based value communication builds on live communication tools that allow customers to get an ongoing experience of the value potential of competencies. (4) Competence-based value delivery is based on bundles of suppliers’ competencies into tradable means and direct access to competence tools.

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.

Benchmarking has proven itself as a tool of management, not belonging to the typical management fads. Well-known both in research and business practice, employing benchmarking as a means of increasing the competitiveness goes along with considerable problems and challenges. By analyzing the very nature of benchmarking, it turns out that the respective problems can be explained in a comprehensive way by referring to the competence-based view. The paper points out the numerous threats connected with benchmarking. The isolating mechanisms, well-known from competence-based research, help to explain why it can be so difficult for firms to make use of benchmarking effectively. Among others, the concept of the absorptive capacity plays a major role when the real character of benchmarking is to be described. Understanding benchmarking as way to get access to firm-addressable resources, the recognition, the assimilation, and the exploitation of the benchmarked “best practices” represent the crucial steps of an effective benchmarking process. Pointing out the implications of benchmarking by a competence-based analysis and to draw some managerial and theoretical conclusions represent the main objectives of this paper.

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.

The purpose of this study is to empirically evaluate the relationship between learning culture, workforce level, human capital and operational performance in two diverse supply chain populations, aircraft maintenance and logistics readiness.

Drawing upon competence-based view of the firm and human capital theory, this paper analyzes data from two studies.

The results provide support for the hypothesized model. Workforce level moderates the relationship between learning culture and human capital, and human capital partially mediates the relationship between learning culture and operational performance.

The findings have implications for behavioral supply chain management research and implications for educating and training the supply chain management workforce. While the populations represent a diverse set of logistics functions and responsibilities, the participants are all military members, which may limit generalizability.

This study should help leaders understand the importance of learning culture and the perceived differences in its effect on human capital based upon workforce level.

This research is among the first to investigate the role of workforce level and answers a multitude of calls for research into the human side of supply chain management.

This paper aims to operationalize and to test the ARCTIC (A – Advantage, R – Relatedness, C – Complexity of Competence, T – Time of Integration, I – Implementation Plan, C – Cultural Fit) framework to assess the prerequisites of competence-based synergy in the acquisition process. The current research provides new analyses of recent acquisitions in the global beauty industry where the ARCTIC framework was satisfied and where the ARCTIC model was NOT satisfied by decisive factors to get the acquisition's synergies. It allows readers to contrast two case studies and grasp how the framework works in greater detail.

The current research relies on an extensive archival search that included financial statements, annual reports, internal documents, industry publications and CEO statements to get at a micro-level understanding. This boosts research data and the operationalization of the ARCTIC framework.

The research identified four steps for investigating whether core competence transfer in an acquisition process would be a source of competence-based synergies. The incorporation of real options into the synergy valuation measures market value-added arising from M&A deals.

The current paper contributes to theoretical and practical issues of global M&As as part of the existing literature of international business and strategic management. The impact on reciprocal synergies of agency problems, external interaction between CEOs in M&A deals, corporate governance systems and an executive compensation theory are promising areas of future research.

El presente artículo pretende poner en práctica y a prueba el esquema ARCTIC a fin de evaluar los requisitos previos de la sinergia basada en las competencias en el proceso de adquisición. Este estudio ofrece nuevos análisis de las recientes adquisiciones acontecidas en el sector de la belleza a nivel mundial en las que se siguió el esquema ARCTIC y en las que NO se siguió por factores decisivos para conseguir las sinergias de la adquisición. Permite a los lectores contrastar dos casos prácticos y comprender con mayor detalle cómo funciona el esquema.

Para el estudio actual se ha llevado a cabo una amplia búsqueda de archivos entre los que se incluyen balances financieros, informes anuales, documentación interna, publicaciones del sector y declaraciones del director general para obtener una comprensión pormenorizada. De este modo, se potencian los datos de la investigación y la puesta en práctica del esquema ARCTIC.

En el estudio se han identificado cuatro pasos que determinan si la transferencia de competencias básicas en un proceso de adquisición sería el origen de sinergias basadas en las competencias. La incorporación de opciones reales en la evaluación de las sinergias mide el valor añadido del mercado derivado de las operaciones de fusión y adquisición.

Este artículo contribuye a los aspectos teóricos y prácticos de las fusiones y las adquisiciones mundiales como parte de la bibliografía existente sobre comercio internacional y gestión estratégica. El impacto de las sinergias recíprocas de problemas del agente-principal, las interacciones externas entre directores generales en acuerdos de fusiones y adquisiciones, los sistemas de gobernanza empresarial y una teoría de la compensación ejecutiva son campos prometedores para futuras investigaciones.

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.

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.

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 paper describes six major approaches within strategic groups research: the industrial organization perspective (the IO-view), the strategic choice perspective, the strategy types perspective, the cognitive perspective, the customer perspective, and the business definition perspective. The two most promising perspectives to make real advances in the strategic management discipline seem to be the cognitive view and the business definition perspective. The purpose of a grouping based on business definitions is to provide an insight, as objective as possible, of the industry’s substructure which also corroborates with the cognitive maps of the industry which the CEOs have in mind. From a practical point of view, the classification of firms in groups based on commonality in business definition (buyer scope, product scope, geographical scope and degree of vertical integration), allows managers to compare their own firms with comparable firms (the firms within the same group). The research concerning strategic groups in the Belgian beer brewing sector and the Belgian electrical wholesale sector is presented. The major problems within the strategic groups research are discussed.