The effect of efficient strategic management in the development of organizational core competencies

Abstract

This study explores how efficient strategic management affects the development and even the identification of organizational core competencies. There variables, strategy formulation, SWOT analysis, and strategy implementation and evaluation, were measured so as to evaluate the efficiency of the strategic methods of the organizations. Chen's strategic management framework and de Chabert's model for core competencies and financial performance were utilized in creating the conceptual framework. These theories fall under the RBV and Industrial Organization perspectives which deals with external and internal factors, instances, and elements that may affect organizational process. The study also falls under these two perspectives. The conceptual framework for this study stands as a process of strategic planning tailor fitted for organizations that are to identify and develop their core competencies. It is cycle wherein phases need to be gone through certain amounts of times to be able to produce a well-defined set or sets of organizational core competencies. Data is collected from fifty strategic planners and members from the top and middle management who are engaged in the strategic planning process of three organizations. The survey questionnaire, which contained twenty-three items, took into account the evaluation of the strategic management of the organizations and how aligned core competencies are with strategic methods employed by them. All three organizations where the survey was conducted got a relatively high score for their strategic management. This implies that the organizational core competencies are aligned to the strategic methods crafted and employed by strategic planners, which was also taken into account by the survey. It appears that resource allocation, communication, and alignment are important factors taken into account when identifying and developing core competencies in strategic management. After performing Pearson's R correlation in SPSS and correlating strategy formulation, competent SWOT analysis, and strategy implementation and evaluation to core competence integration, the data implies that strategic management has a strong effect to developing organizational core competencies. Utilizing strategic management would help organizations maintain competitive edge by developing core competencies. Employing strategic planning when identifying and developing organizational core competencies is an important process organizations must invest in so as to maintain competitive edge. Once utilizing core competencies do not produce profitable results for the organization, the process of strategic planning is to be employed again to further improve performance.