Better Constructs for Analysis and Management of Firm Competence

This chapter focuses on the application of resource and competencebased perspectives to managerial decisions in the firm. It identifies reasons why progress in developing applications has been limited and the popularity of the perspective has waned amongst practitioners. Findings from detailed case studies, combined with conceptual work, reveal several inherent difficulties with existing constructs. Competence is seen to have some qualities that are persistent over time, but others that are sensitive to the context and hence potentially short-lived. Furthermore, attributes that may be described as competence are equally susceptible to acting as inhibitors of performance. To address the confusion and vagueness produced by these multiple properties, the chapter describes a new conceptual scheme that breaks down the concept of firm-level competence into simpler, tighter constructs and shows how these can combine to produce different observed outcomes. It also suggests initial applications of this set of constructs as well as pointing to the potential for further development