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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.

Suggested Citation

  • Carlos M. F-Jardón, 2011. "Deployment of Core Competencies to obtain success in SMEs," Working Papers 1106, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:1106
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    References listed on IDEAS

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    1. 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.
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    3. 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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    5. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 1998. "Do networks matter for innovation? The usefulness of the network approach in analysing innovation," Other publications TiSEM b5b01e96-86f7-4fdf-95c0-4, Tilburg University, School of Economics and Management.
    6. Erol Taymaz, 2005. "Are Small Firms Really Less Productive?," Small Business Economics, Springer, vol. 25(5), pages 429-445, December.
    7. 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.
    8. 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, August.
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    More about this item

    Keywords

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

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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