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Defining and developing competence: A strategic process paradigm
Author(s) -
McGrath Rita Gunther,
Macmillan Ian C.,
Venkataraman S.
Publication year - 1995
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250160402
Subject(s) - operationalization , competence based management , competence (human resources) , knowledge management , competitive advantage , comprehension , empirical research , business , process management , computer science , psychology , strategic planning , marketing , social psychology , epistemology , philosophy , strategic financial management , programming language
In this paper, competence is defined in operational terms as the degree to which the firm or its subunits can reliably meet or exceed objectives. Two antecedents to competence (and thus competitive advantage) are then developed and defined. These are the ‘comprehension’ of the management team working on developing competence and the ‘deftness’ of their task execution. Empirical results from a study of 160 new initiatives in 40 organizations from 16 countries suggest that: (1) it is feasible to operationalize and measure these constructs; (2) comprehension and deftness are important correlates of an organization's degree of competence as defined; and (3) a process‐centered paradigm for understanding competence development shows promise.