Working Papers,
Blekinge Institute of Technology, Department of Industrial Economics

Abstract: We update the original core competence notions of identification and development to fit high efficient innovation processes in dynamic environments, with aim to progress the concept's applicability for scholars and practitioners.

To the core competence concept we add four dimensions previously missing: time (shared history and shared future aims), managerial hierarchy levels (corporate and SBU), innovation development modes and outcome types (radical/incremental and exploitation/exploration), and finally innovation team characteristics and support structure (homogenous/heterogeneous and formal/informal structure).

We propose that existing core competencies are ideally explored by homogenous teams managed at the SBU-level, in structured context, which infers competitive imitation protection. The process starts with identification then progressed by a change in structure: going from formal to informal, which will increase core competence and company performance.

Keywords: Core competence; time; managerial hierarchy levels; innovation; ambidexterity; support structure.

JEL-codes: M10

15 pages, March 8, 2012

Note: This paper is part of the research project No. 2011/0020 founded by the Swedish Knowledge Foundation.

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