Potentials & nature of firm's core competence

This paper examines the potentials of firm's core competence according to the knowledge-based view, resource-based view, technology-based view, institution & system-based view and culture-based view. Depending upon the analysis of the carriers and embodiments of firm's core competence, the paper regards the knowledge as the nature of firm's core competence, and presents that the embodiments of firm's core competence are individuals, organization, culture, complementary assets. Consequently, in order to improve firm's core competence, firm should learn, accumulate and reactivate the firm-specific knowledge. Also, this paper presents that the accumulative knowledge and the enhancement of core competence enable firms to generate above-normal rates of return and a sustainable competence advantage.