Ze Wei Koay; Denis E.Markov , pp. 62. MAM/Sektionen för Management, 2011.
The theory of core competence has drawn a large amount of attention in the academic field as well as of practitioners in the corporate world. Theory asserts that long-term value creation and competitiveness of the corporation relies on full-scale exploitation and timely development of company Core Competences; business strategies should be built around the core competencies of a firm. Identification and exploitation of Core Competences as well as essential elements comprising Core Competences have been for some time topics for academic research and are now well-described in literature. The process of Core Competence development – the focus of our study - still lacks detailed understanding, knowledge is fragmented, and roles of individual mechanisms and relationships between them are still to be investigated.
In this study, we enhance the understanding of the Core Competence development mechanisms and come up with an empirically validated Hybrid model, which accommodates the whole entanglement and hierarchy of different Core Competence development processes and accounts for their mutual relationship. It becomes evident that both dynamic capabilities represented by multiple continuous routines and ad hoc processes represented by actions resulting from ―burning platforms‖ can be clearly identified to play role in corporate Core Competence development process.
The Hybrid model formulated in our study enhances theoretical understanding of practical implications of Core Competence development process. In practice, understanding the entanglement of Core Competence development mechanisms as described by the Hybrid model will allow for strategy formulation to optimally address core competence development process under the conditions of current fast changing and challenging business environment.