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The essence of the competence concept: Adopting an organization's sustained competitive advantage viewpoint

Published online by Cambridge University Press:  02 February 2015

Hai Ming Chen  and
Wen Yen Chang
Hai Ming Chen
Affiliation:
Graduate Institute of Management Sciences, Tamkang University, Tamsui, Taipei, Taiwan
Wen Yen Chang
Affiliation:
Graduate Institute of Management Sciences, Tamkang University, Tamsui, Taipei, Taiwan
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Abstract

Previous scholars considered competence a ‘fuzzy concept’ and addressed confusions such as ‘competency vs. competence’ and ‘competence vs. core competence’. However, the issue ‘What is the essence of employee competence?’ remains unclear. By inference, the essence of competence is addressed in adoption of an organization's sustained competitive advantage viewpoint different from the traditional viewpoint of enhancing individual employability. This paper contends that employee competence is strategically driven by organizational core competence. Psychologically, employee competence and organizational core competence are similar and linked in terms of person–organization fit and person–job fit. A contextual competence framework is established enlightening the essence of employee competence and redefines competence as a ‘temporary asset’ rooted in the interactively organizational context. Contextual variables including shared values, mutual trust and mutual investment bolster the alignment between employee competence and organizational core competence and develop employee competence as firm-specific, thus becoming a source for sustained organizational competitive advantage.

Keywords

competencecore competencesustained competitive advantageperson-organization fitperson-job fitshared valuesmutual trustmutual investment
Type
Research Article
Information
Journal of Management & Organization , Volume 16 , Issue 5 , November 2010 , pp. 677 - 699
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2010

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Footnotes

1

The authors can be contacted via email at haiming@cm1.hinet.net and jack2345@ms19.hinet.net, respectively.

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