Capabilities as strategic resources
In the past decade and a half considerable research effort has been put into understanding the role of the firm’s resources and competitive capabilities in determining and executing appropriate strategies. Prahalad and Hamel’s (1990) seminal work on core competencies was highly influential in shifting the focus of management onto the firm’s strategic resources, particularly its capabilities. The authors argued that competitive advantage does not reside in industry structure or the firm’s participation in specific strategic groups, but rather in its possession and strategic deployment of unique and difficult to imitate bundles of skills, knowledge, and capabilities.
KeywordsOrganizational Learning Core Competency External Knowledge Organizational Capability Strategic Resource
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