DISTINCTIVE COMPETENCE AND ORGANIZATIONAL PERFORMANCE
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DISTINCTIVE COMPETENCE AND ORGANIZATIONAL PERFORMANCE
Abstract
This study focused on distinguishing competence and organisational performance. Three objectives were proposed: explore the effects of organisational competence on competitive advantage, determine the effect of distinctive competence on organisational performance, and determine the effect of distinctive competence on organisational profitability.
A total of 77 responses were collected and authenticated from recruited participants, with all coming from Dangote Cement Plc in Lagos state. The hypothesis was investigated using the Chi-Square statistical programme (SPSS).
Chapter one
Introduction
1.1 Background of the Study
Distinctive competence is defined as a superior attribute, strength, or quality that sets a corporation apart from its competitors. This distinguishing characteristic can be anything, including invention, skill, design, technology, name recognition, marketing, workforce, customer satisfaction, or even being first to market.
The competitive business climate of the twenty-first century has resulted in increased complexity and sophistication of company decision-making, necessitating strategic management (Olanipekun, 2014).
Managing diverse and multifaceted internal operations is merely one aspect of the modern executive’s responsibility. The firm’s immediate external environment presents a second set of challenges.
To deal effectively with everything that influences a company’s potential to grow financially, leaders create strategic management processes that they believe will help the firm position itself optimally in its competitive environment.
Strategic processes enable more accurate forecasting of environmental changes and better preparedness to respond to unforeseen internal and competitive needs (Fiberesima & Rani, 2013).
Competency has recently been viewed as a significant area of mutual knowledge acquisition in organisations; it is also regarded as a process by which information is transferred, streams of technologies are harmonised, and workers from all units are involved.
This suggests that organisations are strategically seeking for strategies to gain a durable competitive edge (Agha et al, 2012). In this context, organisations must rely more on their core capabilities.
Essentially, this suggests that it is more important for a company’s strategy to shift towards competing in core competencies plan rather than competing for product or service leadership.
Top management must evaluate core skills while developing an organization’s strategy in order to achieve profitability (Jamhour 2012). Organisations profit considerably from becoming immune to competition when staff capabilities are discovered and developed effectively.
Despite this, a firm that seeks to change its primary strategy has challenges with the business process that remains at its core. It is thus important for management to look inside the organisation in order to use its available resources to get an advantage over its competitors.
Understanding distinctive competencies at the top management level will allow the organisation to gain a competitive edge, resulting in improved organisational performance.
Statement of the Problem
Every company has several capabilities that allow it to carry out the operations required to supply its products or services. Some of these tasks may be completed satisfactorily
while others may be performed inadequately. However, effective organisations may have specific qualities that allow them to accomplish important tasks extraordinarily well.
These capabilities are known as “distinctive competencies” and refer to the unique skills and activities that a corporation may perform better than competitors (Selznick, 1957; Lado et al, 2002). Furthermore, they are the distinguishing characteristics that underpin a valued market position that is difficult to replicate.
The best test of the distinctiveness of a capacity is whether it disproportionately enhances the supply of higher customer value or allows the organisation to offer to customers in an appreciably more cost-effective manner.
The objectives of the study
The study’s aims are:
To examine the impact of organisational competence on their competitive advantage.
To assess the impact of distinguishing skill on organisational performance.
To investigate the impact of distinguishing skill on organisational profitability.
Research Hypotheses
The following research theories are proposed:
H1: Organisational competency has no effect on its competitive advantage.
H2: Distinctive competency has little effect on organisational performance.
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