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The effect of core competence building on companies performance

Author

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  • Duysters, Geert
  • Hagedoorn, John

    (MERIT)

Abstract

This paper contributes to the understanding of the importance of dynamic firm capabilities for corporate performance in isolating the effect of core competences on the performance of companies. It discusses and tests the assumed relation between core competences and economic performance, including the effect of the external appropriation of these competences through mergers and acquisitions as well as through strategic technology alliances. A major conclusion is that, particularly in high-tech sectors, a specific set of endogenous technological core capabilities is needed to generate performance differentials. Also, the external appropriation of competences does not seem to be an easy solution through which companies can improve their existing capabilities.

Suggested Citation

  • Duysters, Geert & Hagedoorn, John, 1996. "The effect of core competence building on companies performance," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1996010
    as

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    File URL: https://www.merit.unu.edu/publications/rmpdf/1996/rm1996-010.pdf
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    References listed on IDEAS

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