Constructing a strategy on the creation of core competencies for African companies

Abstract

A growing number of studies on economic development have relied on the premise that international technology transfer provides a mechanism for developing competitive advantages for companies of developing countries, and Africa in particular. In this article, we focus on the explicit nature of technology transferable to LDCs to argue that conventional technology transfer alone cannot create core competencies for African companies that lead to the sustainable economic development of the continent. Drawing on insights from the resource-based view and the knowledge based perspective, we develop a conceptual framework for constructing core competencies for African companies. More specifically, we explore the under-researched linkage between core competencies and knowledge management. By examining the roots of core competency in the resource-based view and knowledge-based perspective, we identify the knowledge underpinning core competencies. We then reconcile diverse knowledge management models to propose an integrative approach towards generating such critical knowledge, based on which we further argue that African companies should build their strategy on the creation of core competencies rather than solely relying on conventional international technology transfer