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Capability and core competency identification of a knowledge-based organization

Christian Calle

Supervisor: Dr. Urban Ljungquist

Master’s Thesis in Business Administration, MBA programme

January 24, 2011

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Abstract

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Table of contents

List of Figures and Tables ...6

Chapter 1 – Introduction ...7

1.1 - Purpose ...7

1.2 - Motivation ...7

1.3 - Problem Discussion...8

1.4 - Research Question ... 12

Chapter 2 – Theory ... 13

2.1 – RPV Framework... 13

2.1.1 - Resources ... 14

2.1.2 - Processes ... 15

2.1.3 - Values ... 16

2.2 – Summary ... 17

Chapter 3 – Methodology ... 18

3.1 - Research Method ... 18

3.1.1 – Selecting a Research Method ... 18

3.1.2 – Data Collection ... 21

3.1.3 – Analysis Method ... 21

3.2 - Case Study Selections ... 23

3.3 - Limitations... 24

3.3.1 – Validity ... 24

3.3.2 – Reliability ... 25

3.3.3 – Trustworthiness ... 25

Chapter 4 - Case Studies ... 27

4.1 - South Korea ... 27

4.2 - Case Study 1: Incheon English Village ... 27

4.3 - Case Study 2: Wonderland ... 29

4.4 - Case Study Summary ... 31

Chapter 5 - Cross-Case Analysis ... 32

5.1 - Resource Utilization and Investment ... 32

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5.2.1 – Scheduled Communication ... 37

5.2.2 - Decentralization ... 38

5.2.3 – Internal Hiring Process ... 39

5.3 – Values through Leadership ... 40

5.3.1 – Effective Senior Management ... 40

5.3.2 – Seeking Opportunities ... 41

5.3.3 – Initiating Change ... 42

5.4 – Analysis Summary ... 43

Chapter 6 - Conclusion ... 47

6.1 - Implications ... 47

6.2 - Identifying Core Competencies ... 49

 Program and curriculum development through in-house processes ... 49

 Strong and diverse senior management that communicates the values of the company .... 49

6.3 –Further research... 50

Appendix ... 51

A - Interview Questions ... 51

B - Interviewees List ... 52

Works Cited ... 54

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List of Figures and Tables

Figure 1.1: Core competency development chart... 8

Figure 1.2: Core competency model...10

Figure 2.1: RPV Framework...13

Figure 4.1: Incheon English Village organizational chart...28

Figure 4.2: ICEV Educational Division organizational chart...29

Figure 4.3: Wonderland enrollment numbers 2004 – 2010...30

Figure 4.4: Wonderland organizational chart...30

Figure 5.1: Identified capabilities in both case studies...44

Figure 6.1: Capability support flowchart...49

Figure A.2: Wonderland interviewee list...53

Figure A.1: Incheon English Village interviewee list...54

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1.2 - Motivation

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1.3 - Problem Discussion

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1.4 - Research Question

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2.1 – RPV Framework

Core Competencies

Competitive Advantage Resources

Processes

Values

Capabilities

Figure 2.1: RPV Framework (Christensen, 2003, pp.183-84)

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2.1.1 - Resources

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2.1.2 - Processes

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2.1.3 - Values

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2.2 – Summary

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Chapter 3 – Methodology

3.1 - Research Method

3.1.1 – Selecting a Research Method

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3.1.3 – Analysis Method

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3.2 - Case Study Selections

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3.3 - Limitations

3.3.1 – Validity

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3.3.2 – Reliability

3.3.3 – Trustworthiness

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4.2 - Case Study 1: Incheon English Village

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4.3 - Case Study 2: Wonderland

Director of Education

Asst. Director 5-Day Camp

Asst. Director IES

(Saturday School)

Asst. Director Special Programs

Head Teacher

Head Teacher

Head Teacher

Head Teacher

Head Teacher

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Coordinator

Elementary Head Teacher Owner/Chief Director

Elementary Head Teacher

Kindergarten Head Teacher

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Chapter 5 - Cross-Case Analysis

5.1 - Resource Utilization and Investment

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5.1.2 - Teacher Training and Development

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5.1.3 - Internal Mobility

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5.2 - Process Management

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5.2.1 – Scheduled Communication

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5.2.2 - Decentralization

1 A development that occurred after the completion of the analysis and was brought to the attention of the researcher by an employee of Wonderland is that, indeed, the management at Wonderland has just recently introduced processes to maintain scheduled meetings. The researcher finds this interesting as it illustrates the evolution of a capability within this framework. This capability appeared to have two of the three RPV categories present; it just needed a third to develop it. However, it is not being added to the body of this work as it occurred after the observations were made and the analysis completed.

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5.2.3 – Internal Hiring Process

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5.3 – Values through Leadership

5.3.1 – Effective Senior Management

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5.3.2 – Seeking Opportunities

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5.3.3 – Initiating Change

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5.4 – Analysis Summary

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6.1 - Implications

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 Program and curriculum development through in-house processes

 Strong and diverse senior management that communicates the values of the company

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6.3 –Further research

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B - Interviewees List

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Works Cited

Alain De Beuckelaer, S.M.W., 2007. Qualitative and quantitative international research: The issue of overlooking alternative explanations. Journal of Purchasing and Supply Management, 13, pp.213 - 215.

Anon., n.d. Data 360. [Online] Available at:

http://www.data360.org/dsg.aspx?Data_Set_Group_Id=1389" [Accessed 20 September 2010].

Anon., 2010. Incheon English Village Home Page. [Online] Available at:

http://www.icev.go.kr/eng/enterance/enterance_01_01.jsp [Accessed October 2010].

Anon., 2010. OECD.StatsExtracts. [Online] Available at:

"http://stats.oecd.org/index.aspx?queryid=23090" [Accessed 27 July 2010].

Anon., 2010. World Development Indicators. [Online] Available at:

"http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?order=wbapi_data_value_2008+wbapi _data_value+wbapi_data_value-last&sort=asc" [Accessed 15 September 2010].

Anon., n.d. World Development Indicators. [Online] Available at:

"http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?order=wbapi_data_value_2008+wbapi _data_value+wbapi_data_value-last&sort=asc" [Accessed 15 September 2010].

Anon., 2010. X-rates.com. [Online] Available at:"http://www.x- rates.com/d/KRW/USD/hist2010.html [Accessed 3 November 2010].

Bazeley, P., 2004. Issues in Mixing Qualitative and Quantitative Approaches to Research. In J.G.a.L.R. R. Buber, ed. Applying qualitative methods to marketing management research. UK:

Palgrave Macmillan. pp.141 - 156.

Burke, W.W., 2009. The Douglas McGregor Legacy. The Journal of Applied Science, 45(8), pp.8-11.

Carson, C.M., 2005. A historical view of Douglas McGregor's Theory Y. Management Decision, 43(3), pp.450-60.

Christensen, C.M.., 2003. Innovator's Dilemma. New York: Harper Collins.

Christensen, C.M., 2006. The Ongoing Process of Building a Theory of Disruption. The Journal of Product Innovation Management, 23, pp.39 - 55.

Daneels, E., 2004. Disruptive technology reconsidered: A critique and research agenda. The Journal of Product Innovation Management, 21, pp.246-58.

Davies, B., 2003. Rethinking Strategies and Strategic Leadership in Schools. Educational Management & Administration, pp.295 - 312.

Drucker, P., 2001. The Essential Drucker. Oxford: Elsevier.

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Gwang-Lip, M., 2009. Statistics Paint Korean Picture. [Online] Available at:

"http://joongangdaily.joins.com/article/view.asp?aid=2913964" [Accessed 2010 20 September].

Ljungquist, U., 2007a. Core competency beyond identification: Presentation of a model.

Management Decision, 45(3), pp.393 - 402.

Ljungquist, U., 2008. Specification of core competence and associated components. European Business Review, 20(1), pp.73 - 90.

McGregor, D., 1957. The Human Side of Enterprise. Management Review.

Oh, K., October 15, 2010. ICEV Interviews. Interviewed by Christian Calle.

Porter, M.E., 1990. Competitive Advantage of Nations. Harvard Business Review, pp.73 - 93.

Prahalad, C.K., 1998. Managing discontinuities: the emerging challenges. [Online] Business Source Premier Available at:

"http://web.ebscohost.com.miman.bib.bth.se/ehost/detail?hid=8&sid=bad8a057-1b7e-4edc-bf13- 4c3932468399%40sessionmgr15&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d" \l

"db=buh&AN=575438" [Accessed 3 January 2011].

Prahald, C.K.&.Hamel, G., 1990. Core Competencies of the Corporation. Harvard Business Review, pp.79 - 91.

Raj Echambadi, B.C.R.A., 2006. Encouraging Best Practice in Quantitative Management

Research: An Incomplete List of Opportunities. Journal of Management Studies, 43(8), pp.1801 - 1820.

Smith, S., October 15, 2010. ICEV Interviews. Interviewed by Christian Calle.

Sonali K. Shah, K.G.C., 2006. Building better theory by bridging the quantitative-qualitative divide. Jounal of management studies, 43(8), pp.1821 - 1835.

Teece, David J. G.P.A.S., 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), pp.509 - 533.

Valery S. Katkalo, C.N.P.D.J.T., 2010. Introduction: On the nature and scope of dynamic capabilities. Industrial and Corporate Change, 19(4), pp.1175 - 1186.

William C. Bogner, H.T.a.J.M., 1999. Competence and Competitive Advantage. British Journal of Management, 10, pp.275-90.

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Yin, R.K., 2003. Case Study Research: Design and Methods. Thousand Oaks: Sage Publications, Inc.

References

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