The integrated model of core competence and core capability

There is much research discussing the issues of core competence, core capability, business performance and corporate growth. But the lack of studies exploring their causality is an important research gap. In this research, we develop a framework of a core capabilities operation system, which systematically integrates these critical initiatives, and can be used to develop the extended model of business development. In order to conduct the empirical study, we also design a strategic map of an enterprises' long-term development model. In this model the elements of a fundamental field cultivate the core competences, and further develop the core capabilities. These core competences and capabilities are the drivers of core competitiveness, which force the long-term development and excellent business. Based on this framework, we can develop the structure equation model, and the related questionnaire for the empirical study, in order to determine the critical initiatives and the relationships among these constructs. Based on the analytic results, the causalities among these critical initiatives can be confirmed. We also discover that ‘good organisation culture’ and ‘excellent management team’ are the most important firm’ fundamentals, which support the successful implementation of core competences and core capabilities. Herewith the ‘specialised technologies’, ‘powerful IT system’ and capturing the customers' needs' are the core competences, and ‘product lifetime management’ and ‘total quality management’ are the important capabilities. Core competitiveness is composed of ‘business development strategies’, ‘leader of core products’, and ‘innovative products’, which can result in the firm's excellent business performances.

[1]  Scott L. Newbert.  Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firm , 2008 .

[2]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[3]  E. Kelloway.  Using LISREL for Structural Equation Modeling: A Researcher′s Guide , 1998 .

[4]  Y. Doz,et al.  Creating new growth platforms. , 2006, Harvard business review.

[5]  Anna Kaleka.  Studying resource and capability effects on export venture performance , 2012 .

[6]  D. Aaker.  Managing Assets and Skills: The Key to a Sustainable Competitive Advantage , 1989 .

[7]  Kressel,et al.  Competing for the Future , 2007 .

[8]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[9]  M. Harrison.  How the Growth Outliers Do It , 2012 .

[10]  Margaret Stewart,et al.  Using Structural Equation Modeling to Predict Cabin Safety Outcomes Among Taiwanese Airlines , 2009 .

[11]  Ching-Chow Yang,et al.  An integrated model of TQM and GE-Six-Sigma , 2004 .

[12]  William J. Doll,et al.  A Confirmatory Factor Analysis of the End-User Computing Satisfaction Instrument , 1994, MIS Q..

[13]  Nigel Petts,et al.  Building growth on core competences — a practical approach , 1997 .

[14]  David J. Collis,et al.  Competing on Resources: Strategy in the 1990s , 1999 .

[15]  Dominique Philippe Martin,et al.  Intermediaries for open innovation: A competence-based comparison of knowledge transfer offices practices , 2013 .

[16]  J. J. Dahlgaard,et al.  A causal model for employee satisfaction , 2000 .

[17]  Gilbert A. Churchill,et al.  Marketing Research: Methodological Foundations , 1976 .

[18]  J. Kotter,et al.  Corporate Culture and Performance , 1992 .

[19]  Niron Hashai,et al.  Competitive Advantage and Strategic Configuration of Knowledge-Intensive Small and Medium Sized Multinationals: A Modified Resource Based View , 2004 .

[20]  Rob McLean,et al.  Alignment: Using the Balanced Scorecard to Create Corporate Synergies , 2006 .

[21]  M. Browne,et al.  Alternative Ways of Assessing Model Fit , 1992 .

[22]  Rolph E. Anderson,et al.  Multivariate Data Analysis (7th ed. , 2009 .

[23]  Michel A. Habib,et al.  Skills, core capabilities, and the choice between merging, allying, and trading assets , 2013 .

[24]  S. Mulaik,et al.  EVALUATION OF GOODNESS-OF-FIT INDICES FOR STRUCTURAL EQUATION MODELS , 1989 .

[25]  Zoran Perunovic,et al.  Impact of information technology on vendor objectives, capabilities, and competences in contract electronic manufacturing , 2012 .

[26]  K. Tan.  A comparative study of 16 national quality awards , 2002 .

[27]  Jie Yang.  Innovation capability and corporate growth: An empirical investigation in China , 2012 .

[28]  Yini Lin,et al.  Exploring the role of dynamic capabilities in firm performance under the resource-based view framework , 2014 .

[29]  Chris Zook.  Finding your next core business. , 2007, Harvard business review.

[30]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[31]  King-Jang Yang,et al.  An integrated model of value creation based on the refined Kano's model and the blue ocean strategy , 2011 .

[32]  Lee J. Cronbach,et al.  Alpha Coefficients for Stratified-Parallel Tests , 1965 .

[33]  K. Bollen.  A New Incremental Fit Index for General Structural Equation Models , 1989 .

[34]  Sunil Gupta,et al.  Managing Customers as Investments: The Strategic Value of Customers in the Long Run , 2005 .

[35]  J. Katzenbach,et al.  Cultural change that sticks. , 2012, Harvard business review.

[36]  Delwyn N. Clark.  Implementation issues in core competence strategy making , 2000 .

[37]  E. M. Salinas,et al.  Modeling the brand extensions' influence on brand image , 2009 .

[38]  Michael Jackson,et al.  Total systems intervention: A research program , 1992 .

[39]  Mark S. Litwin,et al.  How to Measure Survey Reliability and Validity , 1995 .

[40]  C. Long,et al.  Using core capabilities to create competitive advantage , 1995 .

[41]  R. Kaplan,et al.  Strategy Maps: Converting Intangible Assets into Tangible Outcomes , 2003 .

[42]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .