Research on the construction mechanism of the core competence of Chinese enterprises in the transition period

Abstract

Purpose The past 40 years of reform and opening up have seen the role of core competence receive unprecedented attention because of the impact of the new normal economy as well as the pressure of transformation and upgrading. Few Chinese enterprises have effectively constructed core competence, and there is also a lack of strategic perspective and contextual embedding of its construction process in theory. This study aims to analyse the unique contextual characteristics of China in the transitional period and the impact on the core competence construction of Chinese enterprises and proposes its construction mechanism for Chinese enterprises. Design/methodology/approach Through theoretical deduction and speculation, this paper analyses the process of concept formation, clarifies the concept, analyses its connotations and structure and emphasises its relativity. Based on a review of the theoretical research on the core competence construction process and an analysis of dual contextual impact, this paper puts forward a mechanism for core competence construction. Findings The results reveal that four specific characteristics of entrepreneurs in balancing and coping with the dual nature of external context constitute the key driving force for a Chinese enterprises’ core competence construction; under the influence of this driving force, the core competence construction mechanism includes process mode, knowledge source, management mode and key success factors. Originality/value Approaching it from a Chinese context, this study deepens the concept of core competence; enriches and develops the research related to the core strategic research proposition of its construction; and provides positive significance for Chinese enterprises to effectively build, develop and strengthen core competence and enhance their international competitiveness.