Core Competency Case Study

The concept of core competence is somewhat significant in a business in terms of winning a sustainable competitive advantage (Boar, 2001). The competitiveness draws from an ability to build the core competencies that generate unanticipated products and services. Indeed, this should at least cost and steps ahead of competitors. In other words, the advantages originate from management’s capability to consolidate organization-wide technology and production skills into competencies that allow individual businesses to adapt quickly to changing opportunities (Prahalad and Hamel, 1990). Meanwhile, the concept of dominant logic in a very influential paper defined the corporation perception's “core competence” as “the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.” Here again, it focuses on intangible and not tangible assets as a basis for competitive advantage in choosing and executing corporate strategy (Barney and Arikan, 2001).

Furthermore, the core competencies relate to harmonizing streams of technology, the organizational work, and the delivery of value. Therefore, the core competence consists of communication, involvement, and a deep commitment to working across

In turn, these effects can raise firm performance. Similarly, the IT capabilities, which support core competencies, can contribute to better performance (Ravichandran and Lertwongsatien, 2005), the business competencies mediate the relationship between IT competence and business competencies when understanding how IT influence business performance (Lee et al.,