A Competence-based Theory of the Firm

Abstract

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New Service Ventures – Struggling for Survival

“…Next, we employ theory to better understand the background. Organizational competences are repeatable, non-random abilities to render competitive output that are based on knowledge and experience and channeled by rules and patterns Teece et al, 1997;Freiling, 2004;Freiling et al, 2008). Research on organizational competences suggests that the availability and utilization of organizational competences is vital to firm's competitiveness and survival in competition .…”

Rethinking How Establishment Skills Surveys Can More Effectively Identify Workforce Skills Gaps

“…By emphasizing how many employees are fully proficient at their jobs, occupational proficiency measures of skills gaps take a resource-based view of the firm that suggests "firm A is more successful than firm B if A controls more effective or efficient resources than B (Freiling 2004)." The resource-based view stresses accumulation, control over, and efficiency of resources rather than development of competencies adaptable to changing business environments and that may dictate or alter business objectives (Teece, Pisano et al 1997).…”

“…The competence-based view of the firm links internal workforce skills and the use of these resources in a goal oriented and market oriented way through the development of organizational competencies (Freiling 2004). The resource-based view of skills gaps maintains that superior resources, in the form of workers who are fully proficient to perform their jobs, will cause performance differences among firms while the competence-based view of skills gaps links workforce skills levels more directly with macro-firm level objectives through competency formation.…”

Exploring Millennial Leadership Development: An Evidence Assessment of Information Communication Technology and Reverse Mentoring Competencies

“…How core competency is defined for an organization's research frames the ongoing discussion of the construct (Drejer, 2002, p. 97). Adopting a similar stance on a firm's core competency, Freiling's (2004) definition provides clear language that considers repeatable, learning based, and non-random enabling capabilities (p. 30). The innovative stance taken by Freiling (2004) and subsequent competency based researchers extends Sanchez & Heene's (1997) theory to recognize the measurable attributes of the strategic and cognitive abilities of managers (p. 313).…”

“…Adopting a similar stance on a firm's core competency, Freiling's (2004) definition provides clear language that considers repeatable, learning based, and non-random enabling capabilities (p. 30). The innovative stance taken by Freiling (2004) and subsequent competency based researchers extends Sanchez & Heene's (1997) theory to recognize the measurable attributes of the strategic and cognitive abilities of managers (p. 313). Subsequently, evaluating the ability to define innovation through the lens of leadership development competencies offers a perspective of prevailing innovative workforce capabilities.…”