Competitive Advantage Core Competency, Organizational Performance
Author(s)
Download Full PDF Pages: 01-13 | Views: 795 | Downloads: 243 | DOI: 10.5281/zenodo.4978818
Volume 9 - September 2020 (09)
Abstract
The objective of this paper is to review current literatures concerning competitive advantage, core competencies and organizational performance as well as their impact on organizational performance. A comprehensive review from previous studies was conducted. The review was focused on competitive advantage, indicators of competitive advantage, core competencies, performance indicators, and the relationship between competitive advantage, core competency and organizational performance. The study concludes that there is significant positive relationship exist between core competency and competitive advantage as well as organizational performance. This positive relationship has been stressed and experienced by scholars and managers of organization. Moreover, this unique relationship also leads to superior performance attained by firms
Keywords
Competitive Advantage, Core Competency, Organizational Performance
References
i. Acquaah, M., (2007), “Managerial social capital, strategic orientation, and organizational performance in an emerging economy”, Strategic Management Journal, Vol. 28, No. 12: 1235 – 1255
ii. Adidam, T. P., Banerjee, M. & Shukla, P. (2012). “Competitive intelligence and firm's performance in emerging markets: an exploratory study in India”. Journal of Business & Industrial Marketing, 27(3), 242 – 254
iii. Agha, S., Alrubaiee, L. and Jamhour, M. (2012), “Effect of core competence on competitive advantage and organizational performance”, International Journal of Business and Management, Vol. 7, pp. 192-204.
iv. Allen, R. and Helms, M. (2002), “Employee perceptions of the relationship between strategy, rewards, and organizational performance”, Journal of Business Strategies, Vol. 19, No. 2: 115-39.
v. Andreeva, T. and Kianto, A. (2012). “Does knowledge management really matter? Linking knowledge management practices, competitiveness and economic performance”. Journal of Knowledge Management, 16(4), 617 - 636
vi. Ansoff, H.I. (1965), “Corporate Strategy”, McGraw-Hill, New York, NY.
vii. Armstrong, M., (2006), “Performance management: Key strategies and practical guidelines”. 3rd ed., Kogan Page.
viii. Baaij, M., Greevena, M. and Dalen, J.V. (2004), “Persistent superior economic performance, sustainable competitive advantage, and Schumpeterian innovation: leading established computer firms, 1954-2000”, European Management Journal, Vol. 22 No. 5, pp. 517-531.
ix. Bani-Hani, J. S and AL-Hawary, F., (2009), “The Impact of Core Competences on Competitive Advantage: Strategic Challenge”, International Bulletin of Business Administration, No.6: 93-104.
x. Barney J. B. (1991). “Firm Resources and Sustained Competitive Advantage”, Journal of Management, l7(1), 99-120
xi. Barney, J.B. (1997), Gaining and Sustaining Competitive Advantage, Addison-Wesley, Reading, MA.
xii. Barney, J.B. (2001), “Gaining and Sustaining Competitive Advantage”. 2nd Ed., Upper Saddle River: Prentice Hall.
xiii. Brewer, B., Ashenbaum, B., & Ogden, J. A. (2013). Connecting strategy-linked outsourcing approaches and expected performance. International Journal of Physical Distribution and Logistics Management, 43(3), 176 – 204
xiv. Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515-24.
xv. Campbell, J. D. (1999). The reliability handbook, Clifford-Elliott, Ontario
xvi. Carlos, M. P., Sousa, E. R., & Fernando, L. (2010). The Key Role of Managers’ Values in Exporting: Influence on Customer Responsiveness and Export Performance. Journal of International Marketing, 18(2), 1–19.
xvii. Chen, Yu-fen & Wu, Tsui-chih, (2007), “An empirical analysis of core competence for high-tech firms and traditional manufacturers”, Journal of Management Development, Vol. 26, No. 2: 159-168.
xviii. Clulow, V.; Gerstman, J. and Barry, C., (2003), “The resource-based view and sustainable competitive advantage: the case of a financial services firm”, Journal of European Industrial Training, Vol. 27, No.5: 220-232.
xix. Certo, Samuel C., Paul Peter, J., & Otten Smeyer, Edward, (1995), “The Strategic Management Process”, 3rd-Ed, Prentice-USA, Austen Press, Irwin Inc.
xx. Ceccagnoli, M. (2009), “Appropriability, preemption, and firm performance”, Strategic Management Journal, Vol. 30 No. 1, pp. 81-98.
xxi. D’Aveni, D. (1994). Hypercompetition, Free Press: New York
xxii. Dennis, D. R. & Meredith, J. R. (2000). An analysis of process industry production and inventory management systems. Journal of Operations Management, 18(6), 683-699
xxiii. Durand, R. and Vaara, E. (2009), “Causation, counterfactuals and competitive advantage”, Strategic Management Journal, Vol. 30 No. 12, pp. 1245-64.
xxiv. Enginoglu D. and Arikan C. L. (2016). “A Literature Review on Core Competencies”. International Journal of Management, Vol. 7, Issue 3, March-April 2016, pp. 120–127,
xxv. Ferdows, K. & De Meyer, A. (1990). Lasting improvements in manufacturing performance: In search of a new theory. Journal of Operations Management, 9, 168-184
xxvi. Foss, N.J. and Knudsen, T. (2003), “The resource-based tangle: towards a sustainable explanation of competitive advantage”, Managerial and Decision Economics, Vol. 24 No. 4, pp. 291-307.
xxvii. Ghemawat, P., (1991). Commitment: The Dynamics of Strategy. New York Press
xxviii. Gupta, S., Woodside, A., Dubelaar, C., and Bradmore, D. (2009). Diffusing knowledge-based core competencies for leveraging innovation strategies: Modeling outsourcing to knowledge process organizations (KPOs) in pharmaceutical networks. Industrial Marketing Management, 38, 219–227.
xxix. Grant, R.M. (1998), Contemporary Strategy Analysis, Blackwell, Malden, MA.
xxx. Govindarajan, V. & Trimble, C. (2004). Strategic innovation and the science of learning, MIT Sloan Management Review, 45(2), 67-75
xxxi. Grahovac, J. and Miller, D.J. (2009), “Competitive advantage and performance: the impact ofvalue creation and costliness of imitation”, Strategic Management Journal, Vol. 30 No. 11, pp. 1192-212.
xxxii. Hamel, G and Prahalad, C.K, (1990), “The core competence of the corporation”, Harvard Business Review, Vol. 68 No. 3: 79-92.
xxxiii. Hafeez, K.; Zhang, Y. and Malak, N., (2002), “Core competence for sustainable competitive advantage: a structured methodology for identifying core competence”, IEEE Transactions on Engineering Management, Vol. 49 No. 1: 28-35.
xxxiv. Hitt, M.A., Bierman, L., Shimizu, K. and Kochhar, R. (2001), “Direct and moderating effects of human capital on strategy and performance in professional service firms: a resource-based perspective”, Academy of Management Journal, Vol. 44 No. 1, pp. 13-28.
xxxv. .Hafeez, Khalid & Essmail, Essmail Ali, (2007), “Evaluating organization core competences and associated personal competences using analytical hierarchy process”, Management Research News, Vol. 30 No. 8: 530-547.
xxxvi. Hipkin, I. (2009). Production competence and competitive advantage in process industries, School of Business and Economics, University of Exeter, Exeter.
xxxvii. Hult, G. T., Ketchen, D. J., Cavusgil, S. T. & Calantone, R. J. (2006). Knowledge as a strategic resource in supply chains. Journal of Operations Management, 24, 458-475
xxxviii. HagstrÖm, Tom; Tomas, BackstrÖm and Susanna, GÖransson. (2009). Sustainable competence: a study of a bank. The Learning Organization, Vol. 16 No. 3: 237-250.
xxxix. Ismail, A. I, Rose, R. C., Abdullah, H. & Uli, J. (2010). The relationship between organizational competitive advantage and performance moderated by the age and size of firms. Asian Academy of Management Journal, 15 (2)157-173.
xl. Jabbouri N. I and Zahari I. (2014). The Role of Core Competencies on Organizational Performance: An Empirical Study in the Iraqi Private Banking Sector. European Scientific Journal, Special Edition Vol. 1, pp 130-139.
xli. Javidan, M. (1998). Core competence: What does it mean in practice? Long range planning, 31(1), 60-71.
xlii. Jamhour, M. (2012). Effect of Core Competence on Competitive Advantage and Organizational Performance. International Journal of Business and Management, 7(1)
xliii. Johnson G, Scholes K, Whittington R (2008), “Exploring corporate strategy; Text and Cases”, FT Prentice Hall, Pearson Education. 8th Edition
xliv. Johnson J. L, Lee, R. P., Saini A., & Grohmann. B. (2003). Focused Strategic Flexibility: Conceptual Advances and an Integrative Model. Journal of the Academy of Marketing, 31(1), 74-89.
xlv. King, A.W., & Zeithaml, C. P. (2001). Competencies and Firm Performance: Examining the Causal Ambiguity Paradox, Strategic Management Journal, 22, 75-99.
xlvi. Krajewski, L.I., & Ritzman, L.P., (1996), "Operations Management: Strategy and Analysis", 4th ed., Addison-Wesley Co., Inc., U.S.A.
xlvii. Kor, Y. (2003). Experience-based top management team competence and sustained growth. Organization Science, 44(6), 707-719.
xlviii. Kor, Y., Mahoney, J. & Michael, S. (2007). Resources, capabilities, and entrepreneurial perceptions. Journal of Management Studies, 44(7), 1185-1210.
xlix. Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic management Journal, 13, pp. 111−125.
l. Leonard-Barton, D. (1995). Wellsprings of knowledge, Harvard University Press, Boston
li. Ljungquist, U. (2008), “Specification of core competence and associated components: a proposed model and a case illustration”, European Business Review, Vol. 20, pp. 73-90.
lii. Lau, R. S. (2002). Competitive Factors and Their Relative Importance in the U.S. Electronics and Computer Industries. International Journal of Operations and Production Management, 22(1), 125-135.
liii. Ljungquist U. (2013). “Adding dynamics to core competence concept applications”. European Business Review, Vol. 25 No. 5, 2013, pp. 453-465
liv. Ma, H. (2000), “Competitive advantage and firm performance”, Competitiveness Review: An International Business Journal Incorporating Journal of Global Competitiveness, Vol. 10 No. 2, pp. 15-32.
lv. Macmillan, H. and Tampoe, M. (2000). Strategic Management. Oxford University Press.
lvi. Morgan, R.E. and Strong, C.A., (2003), “Business performance and dimensions of strategic orientation”, Journal of Business Research, Vol.56, No. 3: 163-176.
lvii. Morgan, N. A., Kaleka, A. & Katsikeas, C. S. (2004). Antecedents of Export Venture Performance: A Theoretical Model and Empirical Assessment. Journal of Marketing, 68, 90-108.
lviii. Moore, Marguerite & Fairhurst, Ann, (2003), “Marketing Capabilities and Firm Performance in fashion retailing”, Journal of Fashion Marketing and Management, Vol.7, No.4: 386-397.
lix. Murray, Peter & Donegan, Kevin, (2003), "Empirical linkages between firm competences and organizational learning", Learning Organization, Vol. 10, No. 1: 51 - 62
lx. Newbert, S.L. (2008), “Empirical research on the resource-based view of the firm: an assessment and suggestions for future research”, Strategic Management Journal, Vol. 28 No. 2, pp. 121-146.
lxi. Nwokah, N. G. (2008). Strategic market orientation and business performance: the study of food and beverages organizations in Nigeria. European Journal of Marketing, 42(4), 279-286.
lxii. O’Sullivan, Don & Abela, Andrew V., (2007), “Marketing Performance Measurement Ability and Firm Performance”, Journal of Marketing, Vol. 71: 79–93.
lxiii. Porter, M.E. (1985), “Competitive advantage: creating and sustaining superior performance”, Simon & Schuster, New York
lxiv. Porter, M.E. (1990), The Competitive Advantage of Nations, Free Press, New York, NY.
lxv. Passemard & Calantone (2000), ”Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter 1980”, cited by Passemard & Calantone 2000:18
lxvi. Phongpetra, V., & Johri, L. M. (2011). Impact of business strategies of automobile manufacturers in Thailand. International Journal of Emerging Markets, 6, 17-37.
lxvii. Powell, T.C. (2002), “The philosophy of strategy”, Strategic Management Journal, Vol. 23 No. 9, pp. 873-880.
lxviii. Raduan C. R., Jegak U., Haslinda A. and Alimin I. I. (2009), “A conceptual framework of the relationship between organizational resources, capabilities, systems, competitive advantage and performance”. Research Journal of Internatıonal Studıes (12). pp. 45-58.
lxix. Richard, P.J., Devinney, T.M., Yip, G.S. & Johnson, G. (2009), 'Measuring organizational performance: Towards methodological best practice', Journal of Management, vol. 35, no. 3, pp. 718-804.
lxx. Rijamampianina, Rasoava; Abratt, Russell; February, Yumiko. Management Decision, 2003, Vol. 41 Issue 4, p362, 10p, 1 Diagram; "A framework for concentric diversification through sustainable competitive advantage"
lxxi. Sadia, M. (2011). The Impact of Competitive Advantage on Organizational Performance, European Journal of Business and Management, 3(4)
lxxii. Srivastava, S. (2005). “Managing Core Competence of the Organization”. Vikalpa, 30(4), 49-68.
lxxiii. Schoemaker, P.J.H. (1990), “Strategy, complexity and economic rent”, Management Science, Vol. 36 No. 10, pp. 1178-1192.
lxxiv. Slack, Nigel; Chambers, S.; Harland, C.; Harrison, A.; & Johanston, R., (1998), "Operations Management", 2nd ed., Pitman Pub, London.
lxxv. Sengupta, A., Venkatesh, D. N. and Sinha, A. K. (2013) Developing performance-linked competency model: a tool for competitive advantage. International Journal of Organizational Analysis, 21(4), pp. 504 -527.
lxxvi. Sigalas C. (2015). Competitive advantage: the known unknown concept. Management Decision Vol. 53 No. 9, 2015 pp. 2004-2016
lxxvii. Subramanian, Ram; Kamalesh Kumar and Karen Strandholm, (2009), “The role of organizational competences in the market-orientation-performance relationship: An empirical analysis”, International Journal of Commerce and Management, Vol. 19 No. 1: 7-26.
lxxviii. Solvell O. (2015). The Competitive Advantage of Nations 25 years – opening up new perspectives on competitiveness. Competitiveness Review Vol. 25 No. 5, 2015 pp. 471-481
lxxix. Tajuddin, A. F. A. & Ahmad, S. Z. (2013). Impact of environmental scanning on the organisational performance of local authorities in Malaysia. Transforming Government: People, Process and Policy, 7(3), 342 – 363
lxxx. Tan, Q. & Sousa, C. M. P. (2015). Leveraging marketing capabilities into competitive advantage and export performance. International Marketing Review, 32(1), 78 - 102
lxxxi. Teeratansirikool, T. Sununta, S. Badir, Y. & Charoenngam, C. (2013). Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), 168 – 184
lxxxii. Thang, N. N., Buyens, D., & Leuven, V. (2008). Training, Organizational Strategy and Firm Performance. The Business Review, Cambridge, 11(2).
lxxxiii. Thomas, L.G. (1986), “The economics of strategic planning: a survey of the issues”, in Thomas, L.G. (Ed.), The Economics of Strategic Planning: Essays in Honor of Joel Dean, Lexington Books, Lexington, MA, pp. 1-27.
lxxxiv. Wang, W. & Changa, C. (2005). Intellectual capital and performance in causal models: evidence from the information technology industry in Taiwan. Journal of Intellectual Capital, 6(2), 222-236.
lxxxv. Wang, Y. & Lo, H. P, (2003). Customer-focused performance and the dynamic model for competence building and leveraging. A resource-based view. Journal of Management Development, 22, 483-526.
lxxxvi. Wheelen, T. L., & Hunger, J. D. (2010). Strategic Management and Business Policy (11th ed.). New York: Prentice Hall Inc.
lxxxvii. Wright, P. , Kroll, M. , Pray, B. and Lado, A. (1995), “Strategic orientations, competitive advantage and business performance”, Journal of Business Research, (33), 143-151
lxxxviii. Wiggins, R.R. and Ruefli, T.W. (2002), “Competitive advantage: temporal dynamics and the incidence and persistence of superior economic performance”, Organization Science, Vol. 13 No. 1, pp. 82-105.
lxxxix. Xie B., Zhan W. and Wang X. (2014). “Research of Core Competence of the Leading International Engineering Constructors”. Applied Mechanics and Materials Vols. 584-586 (2014) pp 2272-2276
Cite this Article: