In view of the dynamics of both market and technology development, the notion of competencies may play an important role as a bridge between market and technology. However, a more differentiated view is needed. Based on a definition of competencies as a system of human beings, technology, organization, and culture, I will propose three kinds of competencies and illustrate these by means of case examples. This will form the basis for discussing issues related to competence-based strategy and the important drivers of competence-based strategy The chapter concludes with a model for competence-based strategy in the context of the firm and its environment.
Core competencies, critical capabilities, and/or key technologies have all become household names within the management scene over the past decade or even more. However, so far very little has emerged to reveal for managers and researchers how they function or how competencies should be developed over time. Therefore, it is questionable whether competence is an operational concept for managers to use in their ex ante strategic management of firms or whether competence in fact is a nice idea that can only be used ex post to explain the differences in firm performance in an industry?
So far, as I have argued in this book, very little research has emerged that goes beyond the latter use of the competence concept. Certainly, the success of several firms has been explained in terms of the core