The integrated model of core competence and core capability

Abstract

There is much research discussing the issues of core competence, core capability, business performance and corporate growth. But the lack of studies exploring their causality is an important research gap. In this research, we develop a framework of a core capabilities operation system, which systematically integrates these critical initiatives, and can be used to develop the extended model of business development. In order to conduct the empirical study, we also design a strategic map of an enterprises' long-term development model. In this model the elements of a fundamental field cultivate the core competences, and further develop the core capabilities. These core competences and capabilities are the drivers of core competitiveness, which force the long-term development and excellent business. Based on this framework, we can develop the structure equation model, and the related questionnaire for the empirical study, in order to determine the critical initiatives and the relationships among these constructs. Based on the analytic results, the causalities among these critical initiatives can be confirmed. We also discover that ‘good organisation culture’ and ‘excellent management team’ are the most important firm’ fundamentals, which support the successful implementation of core competences and core capabilities. Herewith the ‘specialised technologies’, ‘powerful IT system’ and capturing the customers' needs' are the core competences, and ‘product lifetime management’ and ‘total quality management’ are the important capabilities. Core competitiveness is composed of ‘business development strategies’, ‘leader of core products’, and ‘innovative products’, which can result in the firm's excellent business performances.