The Core Competence Formation And Conversion Mechanism

It's hard for the enterprise to survive in the market if it has no outstanding competence (such as core competence) when facing such a drastic competition. Furthermore, core competence has been the focus of research, both in theory and in practice. After many years of research, scholars turn to search for the root of competitive advantages from inside of the enterprise instead of outside, while enterprise competence theory is the outstanding theory of inside competence theory. And such theory has been the focus of research both in theory and in practice since 1990's when it is put forward. One thing should be emphasized is that most of the researches about core competence are studied mainly from the scope of macro and static. In fact, many enterprises are puzzled with such situations that how to construct and form core competence, and how to overcome the core rigidity and converse core competence once it comes into being, so as to avoid being dropped or even eliminated before new market opportunities.In this thesis, the author strives to broadly absorb the merits from numerous theories and researches and the up-to-date trends as well, to utilize the resource-based view and core competence theory as the academic basis, to summary the theories of core competence from the angle of organization learning. That is because, the resource-based view is the theory that can heighten the enterprise competences and obtaining competitive advantages by utilizing the resources can be controlled by enterprises. The view of that theory can explain clearly it's just because the inside structure character of resources that the enterprise can win in the market. Core competencies are"the collective learning in the organization, especially how to coordinate different production skills and integrate multiple streams of technologies". In the long run, competitiveness derives from an ability to build, at lower cost and more speedily than competitors, the core competencies that spawn unanticipated productions. The real sources of advantage are to be found in management's ability to consolidate corporate wide technologies and production skills into competencies that empower individual businesses to adapt quickly to changing opportunities. No matter build or hold such core competences, organization learning is necessary to make those core competence into reality.Finally, the thesis constructs the forming and conversing model of about the core competence and analyzes its factors, pressure and benefits, so that can provide a way and frame to solve above problem for the theoretical and practical fields. At last, the practical case about legend group can summarize and prove the author's theories.