The Effect of Core Competence Building on Companies Performance

Duysters, Geert and Hagedoorn, John (1996). The Effect of Core Competence Building on Companies Performance. UNU-MERIT Research Memoranda. UNU-MERIT.

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  • Sub-type Working paper
    Author Duysters, Geert
    Hagedoorn, John
    Title The Effect of Core Competence Building on Companies Performance
    Series Title UNU-MERIT Research Memoranda
    Volume/Issue No. 14
    Publication Date 1996
    Publisher UNU-MERIT
    Language eng
    Abstract This paper contributes to the understanding of the importance of dynamic firm capabilities for corporate performance in isolating the effect of core competences on the performance of companies. It discusses and tests the assumed relation between core competences and economic performance, including the effect of the external appropriation of these competences through mergers and acquisitions as well as through strategic technology alliances. A major conclusion is that, particularly in high-tech sectors, a specific set of endogenous technological core capabilities is needed to generate performance differentials. Also, the external appropriation of competences does not seem to be an easy solution through which companies can improve their existing capabilities.
    Copyright Year 1996
    Copyright type All rights reserved
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