Core competences and company performance in the world-wide computer industry |
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| Institution: | 1. V. A. Trapeznikov Institute of Control Sciences of Russian Academy of Sciences, Moscow 117997, Russia;2. ITMO University, St. Petersburg 197101, Russia;3. HSE Tikhonov Moscow Institute of Electronics and Mathematics, Moscow 123458, Russia |
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| Abstract: | This paper contributes to the understanding of the importance of dynamic firm capabilities for company performance in isolating the effect of the creation of core competences on the performance of companies in the international computer industry. It discusses and tests the assumed relation between different dimensions of core competences and performance. This is followed by a further study of the relation between the external appropriation of core competences through mergers and acquisitions, as well as through strategic technology alliances. A major conclusion of this study is that 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 in the short-run. |
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