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The Context-Specific Nature of Competence and Corporate Development

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  • Andrew H. Van de Ven

Abstract

Based on an analysis of knowledge-intensive innovations, this paper argues that much of the knowledge that provides distinctive competence for sustained competitive advantage is context specific. The development of this competence is a path-dependent process of numerous learning events in particular situations and practices. Because competence is embedded in the specific context in which it was created, it is very difficult to imitate and can become the basis for sustained competitive advantage. This represents an important opportunity for firms who have grown up in a developing country and learned how to compete successfully there. Firms from developing countries who run in packs to build and expand on their context-specific competencies can be more successful in expanding into other developing countries with similar national political institutional contexts than firms from developed countries who have not acquired this tacit knowledge of local practices.

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  • Andrew H. Van de Ven, 2004. "The Context-Specific Nature of Competence and Corporate Development," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 123-147, March.
    • Handle: RePEc:kap:asiapa:v:21:y:2004:i:1_2:p:123-147
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    Cited by:

    1. Weerawardena, Jay & Mort, Gillian Sullivan & Liesch, Peter W. & Knight, Gary, 2007. "Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 42(3), pages 294-306, September.
    2. Yuan Lu & Eric Tsang & Mike Peng, 2008. "Knowledge management and innovation strategy in the Asia Pacific: Toward an institution-based view," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 361-374, September.
    3. Thierry ISCKIA & Denis LESCOP, 2015. "Strategizing in Platform-based ecosystems: Leveraging Core Processes for Continuous Innovation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 91-111, 3rd quart.
    4. Danming Lin & Qiang Liang & Zongling Xu & Runtian Li & Weimin Xie, 2008. "Does knowledge management matter for information technology applications in China?," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 489-507, September.
    5. Vasudeva, Gurneeta, 2009. "How national institutions influence technology policies and firms' knowledge-building strategies: A study of fuel cell innovation across industrialized countries," Research Policy, Elsevier, vol. 38(8), pages 1248-1259, October.
    6. Klaus E. Meyer & Saul Estrin & Sumon Kumar Bhaumik & Mike W. Peng, 2009. "Institutions, resources, and entry strategies in emerging economies," Strategic Management Journal, Wiley Blackwell, vol. 30(1), pages 61-80, January.
    7. Shenxue Li & Hugh Scullion, 2006. "Bridging the distance: Managing cross-border knowledge holders," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 71-92, March.
    8. Jing Zhang & Justin Tan & Poh Wong, 2015. "When does investment in political ties improve firm performance? The contingent effect of innovation activities," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 363-387, June.
    9. Pananond, Pavida, 2007. "The changing dynamics of Thai multinationals after the Asian economic crisis," Journal of International Management, Elsevier, vol. 13(3), pages 356-375, September.

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