An integrated core competence evaluation framework for portfolio management in the oil industry. (3rd April 2019)

• Record Type: Journal Article
• Authors: Hafeez, Khalid; Foroudi, Pantea; Nguyen, Bang
• Is Part Of: International journal of management and decision making. Volume 18:Number 3(2019)
• Page Start: 229
• Page End: 256
• Publication Date: 2019-04-03
• Subjects: competence portfolio -- resource-based view -- core competence -- resource-asset-capability -- network topology -- collective learning; Decision making -- Periodicals; Management -- Periodicals; 658.403005
• Languages: English
• ISSNs: 1462-4621

Abstract

Drawing upon resource-based theory, this paper presents a core competence evaluation framework for managing the competence portfolio of an oil company. It introduces a network typology to illustrate how to form different types of strategic alliance relations with partnering firms to manage and grow the competence portfolio. A framework is tested using a case study approach involving face-to-face structured interviews. We identified purchasing, refining and sales and marketing as strong candidates to be the core competencies. However, despite the company's core business of refining oil, the core competencies were identified to be their research and development and performance management (PM) capabilities. We further provide a procedure to determine different kinds of physical, intellectual and cultural resources making a dominant impact on company's competence portfolio. In addition, we provide a comprehensive set of guidelines on how to develop core competence further by forging a partnership alliance choosing an appropriate network topology.