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

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.