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International Journal of Business and Social Science Vol. 3 No. 6; [Special Issue -March 2012]25The Assessment of Viewpoint to Core Competence Understanding of Successful Companies in Developing Countries (The Case Study of Turkey) Dr. Fatma Ayanoğlu Şişman Lecturer of Management and Organization Science Marmara University, Business Department Bahçelievler Campus Istanbul-Turkey Dr. Nilay Gemlik Assistant Professor of Healt Management Marmara University, Health Science Faculty Istanbul-Turkey Prof. Dr. Uğur Yozgat Professor of Management and Organization Science Marmara University, Business Department Bahçelievler Campus Istanbul-Turkey Abstract The recent searches have revealed that the enterprises will catch the superior position against their competitors when specialized in line with their skills and focused on their core competencies. The importance of this topic in reaching to success of the enterprises operating in developing countries. Turkey is a country that is continuously monitored and has a great importance in developing countries in terms of both their own enterprises and foreign investors. This is one of the most important reasons that is underlying for the choice of Turkey among developing countries from our research. The aim of this study, from this point forth, has been carried out to determine perspectives on core skills of holdings that are among the largest firms of Turkey. And also how they assess the core skills and to what extent they sees as the exit point of focusing on core competencies especially in times of crisis. Some of these firms depend on a single holding company or business group. For this reason, the interviews have been conducted with holding which these firms are connected, after selection through random sampling between firms which are operating in different sectors. The interviews have been conducted with bosses or senior managers of enterprises on this subject and have been made face to face. The answers that are given to questions on the specified subject, have been subject to content analysis. However the subject that has great significance in theoretical studies, such as basic skills, carries a special significance and a character with the original in terms of reveal how and what results generated in its application. This research shed light on all of enterprises with all these aspects. Keywords: core competence, skill, organization, company, strategy, 1. Introduction The global competition makes it more difficult for enterprises to survive with each passing day. When adding of experienced financial crises on this negativity, standing up and catching the superior position of companies/enterprises in competition has been become almost impossible. The enterprises constantly seek a solution for experienced problems. Recently on this regard, one of the most effective methods of both cost reduction and turn the crisis into an opportunity for enterprises is to focus on core competencies. Many factors are undoubtedly effective in achieving to success of enterprises. Factors related to the business itself and opportunities and threats that offers environment in which, direct impact on success. One of the most important of these factors is the basic skill. The succeed of enterprises in developing countries is very difficult. In this study, has been tried to determine how the focus on basic skills of the successful enterprises in developing countries. In this research, the core competence is primarily discussed theoretically and then the results of research conducted with companies have been specified.The Special Issue on Contemporary Research in Business and Economics © Centre for Promoting Ideas, USA261.1. Core competenceIn today's environment that is experiencing rapid change and intense competition, the resources that enterprises have and to take part in activities to develop their skills in using these resources, have become mandatory to ensure their continuity (Hamel and Heene, 1990). The resources or capability of some enterprises may be less than its competitors. At this point, the element of core competences emerges. The concept of core competence has been come to the fore in order to protect the rule of the competitiveness of enterprises since the end of the 1970s and has been gained great importance with - giving prominence of capabilities - rethinking on this capabilities of enterprises in the 1990s (Prahalad, Hamel, 1990). The most powerful way to gain in global competition is still invisible for many companies. During the 1980’s, top executives were judged on their ability to restructure. In the 1990’s they judged on their ability to identify, cultivate and exploit the core competencies that make growth possible (Prahalad and Hamel, 1990). The concept of core competency has received more attention by managers and decision makers (Javidan, 1998).The central message is for the core competence that companies should develop strategy and structure around their core competences (Nicolai and Dautwiz, 2010). The idea spread from core competencies to core everything—core processes, core businesses—everything that constituted the essence of what a company was and did. Management consultants encouraged companies to focus on their core as a source of untapped potential in a time of rapid change and unpredictability (The Economist, 2008).Core competencies are highly valued by managers since, among other things, they underpin competitive advantage. One stream of research in this area has focused on practical processes relating to the identification of single and multiple core competencies. Yet, identification is insufficient for sustanining core competence derived competitive advantage, since a core competence needs continuous development (Ljungquist, 2007). The enterprise core competence is formed in the process of market competition. It cannot be borrowed from outside (Qingdong, 2009). To increase competitiveness of enterprise by top management and to develop a structure that will emerge to the core competence necessary for the organization are mandatory (Prahalad, 1993). The basic skills usually cover the high skill important activities of an enterprise that is the key to survive and is the center of strategies, at the enterprise level (Bakırtaş, Bakırtaş). The core competence is the most important value of an enterprise. The enterprises determine their direction in future according to the core competence of this enterprise. A connection mechanism must be between assets, resources, capabilities, competencies and core competencies. Core competence is an unique feature of the enterprise (Hafeez and Zhang, 2002). Competencies are integration of skills and technologies, providing superior customer value, deployable in multiple markets and rare among competitors. They also are not assets, as much as they are knowledge and skills. Competencies supply competitive advantage, but some sources of competitive advantages are not core competencies (e.g., access to scarce resources) (Hamel, Heene, 1994). They are the crown jewels of a company and, therefore, should be carefully nurtured and developed. Companies can determine their future business directions based on the strengths of competencies. However, because generalized terms such as resource, asset, capability, and competence are not clearly explained in connection with competence theory, these posing difficulties in understanding many contemporary management concepts (Hafeez, Zhang and Malak, 2002). Core competence can be defined as communication, involvement and a deep commitment to working across organizational boundaries to be assessed on the basis of three criteria: value to customers benefit, limited resources and competition opportunities. Of the company has made an outsourcing decision and transferred a part of the services, the ewecutives and the staff can accumulate more resaurces and pay more attention to the core competence (Gimzauskiene and Staliuniene, 2010). Core competence is the thing that some companies know how to do ―uniquely well‖ and that have the scope to provide them with a better than average degree of success over the long term. (Gallon, Stillman and Coates, 1999). It refers to knowledge and skills which bear an indispensable qualification (Dinçer,1998). The service sector is closely related to all activities of the economy. Core competence, at this point, means the presentation of technology, knowledge and networks in conjunction with each other in order to provide for customer. The core competence shall be identified as the focal point while developing the creative potential for innovation and in the customer-focused market is to think behalf of the customer (Kamdamuly,2004). The core competence constitute consistent assets, knowledge, skills and knowledge of organizational culture that will enable them to achieve a competitive advantage of an enterprises in a specific market.
International Journal of Business and Social Science Vol. 3 No. 6; [Special Issue -March 2012]
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While, the core competence that develop in the competitiveness process by enterprises, are unique and intangible assets, resulting products of this authorization may be imitated. The provision of core competence is often limited. The core competence can not be exchanged and also are valuable assets when they used for any process (Onyeiwu,2003). Core competences are confused with capabilities. Capability is crucial for survival but, unlike a core competency, does not confer any specific differential advantage over other competitors (Prahalad, 1993). Core competences are associated and in a hierarchical structure with abilities, skills, and abilities. The core capabilities of enterprises should be able to distinguish between the capabilities and skills. For example, if an administrator mentions 40-50 abilities for core capabilities of medium-sized enterprise, he refer to ''many other capabilities than ''core skills
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