On the Path towards a Competence-based Theory of the Firm

Abstract

Exploiting the potential and tackling the problems of resource-based and competence-based research, this paper develops a proposal for a competence-based theory of the firm (CbTF). The CbTF is based on the fundamentals of market process theory and is independent of existing approaches to explaining the nature of the firm. The paper addresses the basics of the theory in terms of the philosophy of science by referring to the Lakatos model and the position of CbTF in organization theory. The fundamental question of the nature of the firm is approached by the notion of an organizational `ambiente' and by using findings of entrepreneurship research.

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