IBS: Les 3

Question 1

Prahalad and Hamel => core competence

Answer 1

The collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.
=> Higher order FSA
1. difficult to imitate
2. give acces to a wide variety of markets
3. add significant value to end product
(4. their loss strongly harms firm performance)

Question 2

Focus of US MNE’s

Answer 2

Short term profitability through product differentiation and frequent repositioning

Question 3

Focus Japanese MNEs

Follow CC’s approach

Answer 3

Long term performance through continuous improvement of process technology for standardized products

Question 4

Weakness of CC’s

Answer 4

1. Two questionable assumptions: a) home LAs are irrelevant for the development of CCs
   b) CCs are always NLB
2. The reallocation of ‘Competence carriers’ may harm rather than reinforce a firms CCs
3. Overlook that foreign subsidiaries may also develop CCs
4. A centralized approach to the development of CCs may result in bounded rationality and reliability problems
5. Streamlining operations to develop and exploit CCs is often harmful in the case of downstream activities.

Question 5

Diamond model

Answer 5

• Factor conditions
• Demand conditions
• Related & supporting industries
• Strategy, structure & rivalry

Question 6

Verbeke’s reinterpretation of the diamond model

Answer 6

• Als de condities zwak zijn zal de industrie enkel met LB FSAs kunnen werken. Het is dan moeilijk internationaal door te breken
• Als de conditions goed zijn, zal de industrie wel internationaal kunnen doorbreken

Question 7

Key weakness of Porters diamond model

Answer 7

1. Assumes that firms are bound to the domestic diamond conditions they face
2. In reality, firms can gain access to favorable diamond conditions in other countries
   => model houdt geen rekening met verdragen

Question 8

Born globals

Answer 8

= Entrepreneurial firms that, from their inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries

Question 9

Main differences between P&H CCs model and Porter’s diamond model

Answer 9

• P&H houdt geen rekening met domestic LAs, en neemt patroon I aan
• Porter kijkt vooral naar external conditions, en neemt patroon II aan