An empirical analysis of core competence for high‐tech firms and traditional manufacturers

Abstract

Purpose

The main purposes of this paper are as follows. Exploring whether there is significant difference in the model of core competence between H‐T firms and T‐Ms in Taiwan. Investigating whether there is significant difference in the explanatory power of dimensions of core competence both for H‐T firms and T‐Ms in Taiwan.

Design/methodology/approach

The samples used in this study are the management levels of two H‐T firms and three T‐Ms in Taiwan. The authors collected a company‐wide opinion through questionnaires to examine the core competence, including strategic planning, production process innovation, supply chain management, logistics management, quality management and R&D.

Findings

The major findings are summarized as follows: through path analysis, it is found that the model of core competence for the H‐T firms is different from that of the model for T‐Ms. R&D capability is regarded as the most important source for core competence both by H‐T firms and T‐Ms. Strategic planning in H‐T firms is regarded as an important dimension in constructing core competence. The capabilities of supply chain management and logistics management for T‐Ms significantly affect core competence, because these businesses must focus more on services.

Originality/value

High‐tech firms (H‐T firms) and traditional manufacturers (T‐Ms) differ from each other in terms of the business environment. It is interesting to explore the core competence both in the H‐T firms and the T‐Ms as these two have distinct business environments.

Citation

Chen, Y. and Wu, T. (2007), "An empirical analysis of core competence for high‐tech firms and traditional manufacturers", Journal of Management Development, Vol. 26 No. 2, pp. 159-168. https://doi.org/10.1108/02621710710726062