Analysis On Heterogeneity Of China Local Government: From Competence Theory Prospective

The research of local government has always been the focus point of studiers home and abroad. Local governments play an important role in the process of China transition. The whole country grows with a high speed, but different regions have different performances. So there is theoretical and realistic significance in studying on heterogeneity of local government for the long-term economy development of our country.Why different regions have so much different performances in a country under the same historical background? This paper will analyze heterogeneity of local government and the root of this kind of heterogeneity from competence theory prospective.Chapter 1 outlines the competence theory and analyzes its generally applications for the local government. On the basis of introduction of the origin and development of competence theory, the paper comparatives the similarities and differences between firm and government, clarify local governments' characteristics and functions at present and reveal local governments' special characteristic of"corporatism" .That we can introduce the firm's competence theory into the analysis of the organization of government.In the second chapter we regard the local government as a set of knowledge and competence. The core knowledge and competence of local government is common knowledge individual knowledge in the organization long-term accumulation. It has 3 characteristics: integrity, heterogeneity and derivativtion. It is special capital of a local government, and it difficult to imitate, divide or transplant. And we analyze the core knowledge and competence of local government from 3 dimensions such as convention, culture and organization. Just because of the difference of convention, culture and organization, the core knowledge and competence of local government is different. In the third chapter, we constructe an analysis frame on the basis of above theory, and discuss and conform the heterogeneity of local government thoroughly with the frame. In the analysis frame, the heterogeneity of local government has a close relation with key resource and the core competence. The key resource include local finance ability,institutional public goods supplies, political entrepreneur, preferential policy and local culture and tradition and so on. The core competence include organizational ability, learning capability and innovative ability. The differences of local government's behavior way and competitive advantage are result from the differences of local government's key resource and the core competence. Through a great of examples, we make a positive analysis for the heterogeneity of local government, and connect theoretical analysis with positive analysis perfectly.In chapter four, we will deplore the reason that why local government can sustain the heterogeneity,that is why local government can sustain long-term competition advantage. We will analyze the reason from competence theory prospective. The core competence and long-term competition advantage are the comprehensive interactions of key recourses, internal competence and external environment. Organizational ability and learning capability are the root of innovative ability, innovative ability is the accelerator in foundation process of key recourses, and key recourses are direct origin of competition advantage. And the relations between them are not unidirectional, they will interact with each other.At last, we will give some suggestions on how the local government enhance competence and sustain the competition advantage. Local governments could construct their core competence and competition advantage by acquiring key recourses, optimizing organizational structure, accumulating learning ability, cultivating organization climate and culture and accumulating and innovating new knowledge and competence.