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1、nCore competence and competitive strategy of the Taiwan shipbuilding industry:a resource-based approachInstitute of Business and Management ，JUNE 2004The shipbuilding output for Taiwan had been 4th in the world until 1999; however, at that time, it dropped to the 9th. Currently, the world shipbuildi
2、ng capacity greatly exceeds the demand and this disparity could grow to 40% by 2005. Facing this turning point, the main objective of this study is to re-examine the international competitive position of Taiwans shipbuilding industry; further-more, to realize the industries core competences and atte
3、mpt to recommend competitive strategies for the future development of Taiwans shipbuilding industry. The results show that Taiwans main core competence is production management, mainly through heterogeneous resource analysis. This paper also proposes that for general types of ships, Taiwans developm
4、ent priority should be to utilize low-cost strategies to occupy the market continuously; as to high value added types of ships, Taiwans priority should be to utilize differential and focus strategies. Finally, the direction of government policy is suggested.IntroductionResource-based view has become
5、 a signicant approach for strategy management through many literature discussions since Wernerfelt highlighted how a department using unique and idiosyncratic organizational resources can sustain superior performance1. Firms can obtain advantages by analyzing and re-assessing information about the a
6、ssets they already control, if these assets can be used to implement valuable market strategies and if similar assets are not controlled by a signicant number of competitors. Navarro suggested that a resource-based view of the rm is a key for the renewal of strategic thinking in mature industries 2.
7、Barney proposed that resources include all assets, capabilities, organizational processes, rm attributes, information, knowledge, etc. controlled by a rm that enable the rm to conceive of and implement strategies that improve its effciency and effectiveness 3. However; there are a few related concep
8、ts in strategy literature which are worth mentioned as follows:Organizational capabilityUlrich & Lake proposed that organizational capability is the ability to build rms internal structure and process, and these structure and process are able to affect employees to create organizational appropriable
9、 capability. Hence, the organization is able to t with strategic requirement and environmental change 4, 5.Distinctive competenceSelznick proposed that distinctive competence is to describe the character of an organization, refers to those things that an organization does especially well in comparis
10、on with its competitors 6. Snow & Hrebiniak stated that distinctive competence is the capability that organizations competitors do not possess 7.Core competencePorter proposed that mainstream strategy research through the 1980s and the early 1990s broadly assumed that it is possible for a rm to achi
11、eve and sustain a competitive advantage, a unique position relative to competitors that allows it to consistently outperform them 8. Post Porters ideal, much of the research on competitive advantage focused on core competence as a major source of that advantage 9. Core competence is the collective l
12、earning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies 10, 11. A rms core competence is dened as the vector of the irreversible assets along which the rm is uniquely advantaged and it is asset of differentiated technological
13、 skills, complementary assets, and organizational routines and capacities 12. Core competence is skills and areas of knowledge that are shared across business units and result from the integration and harmonization of strategic business unit competence13.In order to observe rms in a wider point of v
14、iew and to study in a more specic agglomerate effect, resources and core competences are used in this study. The shipbuilding industry is an internalized, liberalized, and mature industry 2, 14. The related industry network is extensive and contains upstream suppliers for material and equipment, e.g
15、. the steel and iron industries, machinery industry, electrical and electronic industries, and downstream customers, e.g. the shipping industry and national defense industry. In post-war Japan, as later in South Korea, shipbuilding was identied as a key, strategic industry capable of promoting wider
16、 economic growth. In addition, Japan and South Korea comprise the rst and second largest shipbuilding nations in the world. According to statistics in Lloyds Register, in recent years, the main shipbuilding nations: Japan, South Korea, China, Germany, Italy, Taiwan, Poland, Spain, Denmark, and Croatia share 90% of the worlds shipbuilding output. The shipbuilding output for Taiwan had bee
