Business Management Theory: Core Competence Theory

This study is anchored on the business management, a Business Management Theory akin to the general concept of management which refers to managing and supervising a group of people for the attainment of a collective aim which is beyond the capacity of individual exertion. A Business Management Theory is a study of the principles and practices of a business to attain the desired organizational goals conducting effective management. A Business Management Theory is a range of approaches including the fundamentals of accounting, public relations, operations, labor relations, time management, investment and corporate governance to enhance the accomplishment of a business in some measurable or otherwise confirmable manner. Business management theory

Boyatzis (2000) as well as Munene (1998) have analyze different types of competences, which they have assign to as operant competences and emotional competences respectively. Also, the Management Competence Theory by Prahalad, and Hamel (1990) postulates that a core competency is a particular factor that a business sees as being central to the way the company or its employees work. According to Mascarenhas et al., 1998, a core competency can take different forms, including technical/subject matter know-how, a decent process and/or close ties with customers and suppliers, Core competencies are particular strengths corresponding to other organizations in the industry which administer the fundamental basis for the provision of added value. Core competencies give back the collective information in organizations and involve how to counterpart diverse production skills and fuse various streams of technologies. Management Competence and Financial Performance According to Enders (2004), firm distinctness are the outcome of superior management. A firm’s management team is accountable for the most important decisions of corporate performance. According to

The modern finance theory cite that appropriating promotes the distribution of resources, develop managerial incentives, and force firms to invest optimally. This view has clearly prevail contemporary thinking and routine. A never-ending task has assess management practices in firm success. Despite the many success factor studies, it remains imprecise what exactly differentiate successful from unsuccessful companies. Opler and Titman (2004) assert that the efficient use of firm possessions depends on the decisions of the management team. According to Amit and Schoemaker 2003, organizations financial performance depends on market deficiency and managerial decisions about