Core Competency Literature Review

LITERATURE REVIEW AND THEORETICAL DEVELOPMENT

Core competency

Much of the research on competitive advantage centred on core competencies as a significant source of that advantage, core competencies embrace the particular set of skills and resources affirm possesses as well as the approach those resources are accustomed produce outcomes (Fiol, 2001). The concept of core competency, as basic to organizational renewal and as a driving force behind strategic amendment, interests each managers and scholars. It is a complex and challenging concept: it 's tough to specify in theory, to identify empirically as a development, and to apply in practice. Scholars have recently recognized these issues generally conceptual discussions (Hafsi and Thomas, 2005)

single, double, and triple-loop learning that is based on competencies, capabilities, and dynamic capabilities, severally, another researcher has adopted similar notions of hierarchy: i.e. first-order competency that comprises customer and technological competencies; integrative competency, which is that, the ability to combine the previous competencies; and second-order competency, which is that the ability to make first-order competencies (Danneels, 2002). Students also distinguish between Cores competencies are particular strengths relative to different organizations within the trade which give the fundamental basis for the provision of added value.

Core competencies are the collective learning in organizations, and involve a way to coordinate various production skills and integrate multiple streams of technologies. It’s communication, an involvement and a deep commitment to operating across organizational boundaries. Few firms are seemingly to create world leadership in additional than five or six elementary

Most of the authors have focused on three dimensions of core competency, they are: Shared vision, Cooperation and authorisation (Sanchez, 2004; Hafeez et al., 2002; Javidan, 1998; King & Zeithaml, 2001; Hafeez & Essmail, 2007). Therefore, the study focuses on these 3 key dimensions of core competency. Shared vision is outlined as a firm’s interest in sharing the organization’s read of goals, objectives, policies, priorities, approaches, needs, and desires .(Santos-Vijande et al., 2005). It is guarantee figuring out how to happen inside of the same bearing and to motivate that it amazingly takes places. Companies with greater shared vision likely enhance to business excellence and success. Then, companies appear to utilize the shared vision to create innovative product and services and satisfy client and market necessities (Ussahawanitchakit, 2008). Cooperation is moreover a key issue that plays a task within the advancement of core competency. Cooperation may be a joint behaviour toward a specific goal of common interest that involves interpersonal relationships (Croteau et al., 2001). Cooperation as a Core competency knows when and how to attract, reword, and utilize teams to optimize results. Acts to fabricate trust, inspire enthusiasm, encourage others, and facilitate resolve conflicts and develop consensus in making high performance (Berger et al., 2004). Strengthening may be a process or psychological state manifested in four insights: that means, competence,