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Deployment of Core Competencies to obtain success in SMEs

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  • Carlos M. F-Jardón

Abstract

Sources of competitive advantage are firm characteristics that allow setting up in a better position than its competitors. From the Resources Based Theory is usual to consider these sources as internal and external factors of business. Entrepreneur organizes core competences combining these factors. They are competitive advantages when firm gets better performance than the competition. The process to obtain better performance from core competences isn’t well known. In this paper we define fifth core competencies: human and technological resources management, zone resources management, customer management, product marketing and innovativeness. We determine which is the process of influence of core competencies on business performance by PLS techniques. Findings indicate a causal process in generating business performance. Only innovativeness affect to performance. But better innovativeness is achieved combining from human and technological resources. This is improved by zone resources management. In turn, this I determined by management customers, associated with produc6 management.

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Bibliographic Info

Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 1106.

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Length: 28 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:vig:wpaper:1106

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Keywords: Sources of Competitive Advantage; Resources based Theory; firm performance; SMEs; Core competencies.;

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  1. Erol Taymaz, 2005. "Are Small Firms Really Less Productive?," Small Business Economics, Springer, vol. 25(5), pages 429-445, December.
  2. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
  3. Katchova, Ani L., 2010. "Structural changes in U.S. agriculture: Financial performance of farms in transition," 114th Seminar, April 15-16, 2010, Berlin, Germany 60965, European Association of Agricultural Economists.
  4. Ken Kamoche, 1996. "Strategic Human Resource Management Within A Resource-Capability View Of The Firm," Journal of Management Studies, Wiley Blackwell, vol. 33(2), pages 213-233, 03.
  5. Nobuya Fukugawa, 2006. "Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan," Small Business Economics, Springer, vol. 27(2), pages 181-193, October.
  6. Leon A.G. Oerlemans & Marius T.H. Meeus & Frans W.M. Boekema, 1998. "Do Networks Matter for Innovation? The usefulness of the economic network approach in analysing innovation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 89(3), pages 298-309, 08.
  7. Antonio Vazquez-Barquero, 1999. "Inward investment and endogenous development. The convergence of the strategies of large firms and territories?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(1), pages 79-93, January.
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