Defining and developing competence: A strategic process paradigm

Rita Gunther McGrath · Ian C. MacMillan

523 citations0/0 files storedStrategic Management Journal

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Innovation and Knowledge Management Management and Organizational Practices Competency Development and Evaluation

Abstract

Abstract 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.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1990Absorptive Capacity: A New Perspective on Learning and Innovation 1997Dynamic capabilities and strategic management 1984A resource‐based view of the firm 1991Exploration and Exploitation in Organizational Learning 1983An Evolutionary Theory of Economic Change.1991The fifth discipline, the art and practice of the learning organization

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