ABSTRACT
Introduction Within strategic management he resource-based view of the firm has emerged as an approach to strategy which sees strategy as formulated on the basis of the resources and competencies of the firm (Prahalad and Hamel 1990; Grant 1991; Peteraf 1993). This may be contrasted with the market positioning view which sees strategy as formulated on the basis of the structure of the industry in which the firm competes and its market positioning within that industry (Porter 1980). Competencies may be distinctive to a firm and form the basis of its positioning and performance. In management terms, it is an approach that emphasizes the quality of management thinking and implementation in identifying, building, and nurturing resources and competencies over time. This chapter explores the nature of the competencies critical to competitiveness for multinational service firms.
