current pool of talent but also anticipate resource requirements to succeed (Ketchen, Ireland, & Snow, 2007). Firms that evaluate newer pastures and seek opportunities to acquire competitive knowledge will be most adaptive and improve performance (March, 1991). According to Leonard-Barton (1992), any continuous competence building activities in related technology areas lead to strengthening of the firm’s knowledge base, however over time, this may create competence deficiencies.
Hence, in the short run, competence leveraging tends to look at the survival of the foundation competence, but over a period of time, the continued concentration of present competence base may impact detrimentally on the anticipatory competence. To leverage competence the firm needs to recycle competence at regular intervals of time. Leverage of firm specific competence may not always be feasible especially in the fast moving technology environment. Bandura (1997) defined competence adequacy as a team’s shared perception on its aggregate competencies. Depending on the operating context and available resources, this perception can vary and remains debatable (Yu, & Hang, 2009). According to the social constructionism theorists, when members of a group interact with one another through a social system, the aggregate knowledge is generated and stored through the interactions (Berger & Luckmann 1966). Risk of competence obsolescence on organisation’s competitive advantage, change capacity and goal focus was not covered adequately in these studies.
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- Summer '17
- Management, Core competency