The Dynamics of the Diversified Corporation and the Role of Central Management of Technology

Abstract

The notion of "technology base " is discussed more in-depth in Christensen (1996a) in which a 1 conceptual distinction between capability and competence is suggested: A capability signifies lower-order functional or technical capacities to mobilize resources for productive activities, while a competence signifies a higher-order managerial capacity of the firm to mobilize, harmonize and develop resources and capabilities to create value and competitive advantage. In this paper, however, the distinction is not critical, and I systematically use the term competence when referring both to technical and managerial capacities. 1.

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