ABSTRACT
In the 1990s, the concepts of organizational competence, knowledge, and learning have acquired a prominent place in the strategic management literature. In many industries characterized by rapid technological development and intense competition, superior knowledge, rather than market power and positioning, is the key to long-term success. Though companies that actually isolate themselves from the pressure of competitors may enjoy above-average returns (Porter, 1980), it has become clear that unique internal capabilities and resources lie behind above-average performance (Barney, 1991; Prahalad and Hamel, 1990). Broadly defined, knowledge and, more specifically, core competencies, are some of these critical internal resources. From this standpoint, strategic management requires the development, storage, and actual use of carefully chosen competencies.
