能力基礎之成長策略與事業風險報酬關係: 理論與實證
Other Title
Competence-based Growth Strategy and Risk-Return Relationship:
Theory and Empirical Evidence
Theory and Empirical Evidence
Date Issued
2000
Date
2000
Author(s)
DOI
892416H002091
Abstract
How to pursue an effective growth strategy
has been one of the central inquiries in the field of
strategic management research. Most of the
previous insights concerning growth strategy
focus on a firm’s strategic choices among products
and/or markets. While such a conceptualization
provides convenience for researchers to conduct
empirical investigations, it may underestimate the
influence of competence profiles of the company
that support its development of products and
penetration of markets. The emergence of
resource-based view of the firm in the 1980s and 2
that of competence-based management in the
1990s constitute a fruitful opportunity to explore
the causes and effects of different growth
strategies based on the heterogeneity of a firm’s
competence profile. Along this line of inquiry, the
purpose of the current research initiative is to
explore the linkages between growth strategy and
risk-return relationships from the perspective of
competence-based management.
We identify two critical elements of
competence management for a firm in pursuing its
growth. One is competence-leveraging effort
made by the company, which refers to stretch the
existing stock of competence for further
value-creating applications. The other one is
competence-upgrading effort made by the
company, which indicates the exploration of
qualitatively new assets or capabilities for the
organization. Since competence-leveraging
efforts do not qualitatively change the existing
competence profile but just replicate or reuse the
existing stock of competence, they should result in
a relatively lower level of business risk. On the
other hand, competence-upgrading initiatives
should result in a higher level of business risk, but
may lead to a higher level of business return due to
its investments in the exploration of qualitatively
new set of competence. We further argue that, to
achieve dynamic corporate coherence, a
successful firm has to establish a business model
containing both processes.
Based on this conceptualization, the present
research project provides an investigation on the
linkages between competence-based strategy and
a firm’s profitability and business risk. Our
empirical setting is constructed by a panel data set
containing operating and financial information of
160 Taiwanese contract manufacturers over
1996-1999, our analytical results show that the
constant upgrading of a firm’s product design and
manufacturing process competencies proves to be
essential for value-creation. In addition,
establishing effective inventory control while
being able to deliver time-to-market
manufacturing services is vital to their survival
and economic success. Moreover, depending upon
the types of products they offer, managing a
balanced supply structure to support the needs of
competence leveraging constitutes an important
piece in the jig-saw puzzle of the formation of
dynamic capabilities. On the risk side, firms
engaging in both competence-upgrading and
competence-leveraging activities experienced a
higher level of average profitability and a lower
level of business risk. For those firms
emphasizing on competence-upgrading activities,
a higher level of business risk is found. For those
firms emphasizing on competence-leveraging
activities, a lower level of profitability is found.
Overall, our results suggest that by combining the
efforts of upgrading competence with activities
for leveraging existing competence a firm can
pursue its optimal growth. Implications for
formulating growth strategy based on competence
framework are discussed.
Subjects
Competence-upgrading
Competence-leveraging
Risk-Return
Relationship
Relationship
Electronics Contract
Manufacturing
Manufacturing
Publisher
臺北市：國立臺灣大學國際企業學系暨研究所
Type
report
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