The effect of core competence building on companies performance

Geert Duysters () and John Hagedoorn
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John Hagedoorn: MERIT

No 10, Research Memorandum from Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT)

Abstract: This paper contributes to the understanding of the importance of dynamic firm capabilities for corporate performance in isolating the effect of core competences on the performance of companies. It discusses and tests the assumed relation between core competences and economic performance, including the effect of the external appropriation of these competences through mergers and acquisitions as well as through strategic technology alliances. A major conclusion is that, particularly in high-tech sectors, a specific set of endogenous technological core capabilities is needed to generate performance differentials. Also, the external appropriation of competences does not seem to be an easy solution through which companies can improve their existing capabilities.

Keywords: research and development (search for similar items in EconPapers)
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umamer:1996010

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