Core Competencies and Strategic Performance

Abstract

Introduction: Core competencies are an organization’s ability to operate efficiently within the business environment and to respond to challenges. In order to achieve a sustainable future, top managers must identify opportunities based on capabilities and consistently build competencies that cannot be imitated by other firms. Thus, the concept of core competencies plays a vital role in linking or transforming resources into sustainable advantages.

Objectives: This study aims to fill the research gap between core competencies and strategic performance. The variables include the dimensions of core competencies, namely capability technology, communication, teamwork, strategic performance, and strategic thinking.

Methods: The number of respondents is 260, with the analytical technique using structural equation modeling (SEM) through AMOS software

Results: The results of the study show that among the seven proposed hypotheses, five are supported by empirical data. Specifically, capability technology has a significant effect on strategic thinking. Furthermore, capability technology, communication, and teamwork have a significant effect on strategic performance. Strategic thinking also has a significant effect on strategic performance.

Conclusions:  First priority in enhancing strategic performance is influenced by strategic thinking, which is formed by the benefits of capability technology. second to improve strategic performance influenced by strategic thinking. Third to improve strategic performance influenced by strategic thinking built by communicationprioritas And fourth to improve strategic performance influenced by strategic thinking built by maslahah teamwork