“It is important here to clarify the difference between 'strategic assets' and 'core competences.' Strategic assets are assets that underpin a firm's cost or differentiation advantage in a particular market and that are imperfectly imitable, imperfectly substitutable and imperfectly tradeable. These assets also tend to be market- specific. An example would be Honda's dealer network distributing and servicing its motorbikes. On the other hand, core competences are the pool of experience, knowledge and systems, etc. that can be deployed to reduce the cost or time required in creating or expanding the stock of strategic assets.”

—  Constantinos C. Markides

Source: "Related diversification, core competences and corporate performance", 1994, p. 164

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "It is important here to clarify the difference between 'strategic assets' and 'core competences.' Strategic assets are …" by Constantinos C. Markides?
Constantinos C. Markides photo
Constantinos C. Markides 8
Cypriot business theorist 1960

Related quotes

“We will argue that the long-run value of a related diversification lies not so much in the exploitation of economies of scope (asset amortization) - where the benefit is primarily short-term - but in allowing corporations to more cost efficiently expand their stocks of strategic assets. Relatedness, which opens the way for asset improvement, asset creation and asset fission, holds the key to the long-run competitive advantages of diversification. This means that in most cases, similarities in the processes by which strategic assets are expanded and new assets are created are more important than static similarities between the strategic assets that are the outcome of these processes.”

Constantinos C. Markides (1960) Cypriot business theorist

Source: "Related diversification, core competences and corporate performance", 1994, p. 150

“It makes sense to describe a core competence as a complex adaptive system, located in the lower regions of the I-Space between an ordered regime in which knowledge assets get frozen into technologies and a chaotic regime in which the stability necessary for effective organizational coordination and integration remains absent. Core competences, then, have their being in a region of the I-Space sandwiched between an excess of usable structure and a total lack of it. We hypothesize that the possession of a core competence is one measure of a firm’s ability to deal with complexity.”

Max Boisot (1943–2011) British academic and educator

Source: Knowledge Assets, 1998, p. 205

“Traditional measures of relatedness provide an incomplete and potentially inaccurate picture of the scope of exploit interrelationships between its SBUs. This is because traditional measures look at relatedness only at the industry or market level. But as we explain below, the relatedness that really matters is that between 'strategic assets' (i. e., those that cannot be accessed quickly and cheaply by nondiversified competitors.) Therefore, to accurately measure whether two businesses are related, we need to go beyond broad definitions of relatedness that focus on market similarity; we need to look at the similarities between the underlying strategic assets of the various businesses that a company is operating in.”

Constantinos C. Markides (1960) Cypriot business theorist

Source: "Related diversification, core competences and corporate performance", 1994, p. 150

“[Knowledge assets are] stocks of knowledge through which different value added services flow.”

Max Boisot (1943–2011) British academic and educator

Source: Knowledge Assets, 1998, p. 3.; as cited in: Evans, M. M., and Natasha Ali. "Bridging knowledge management life cycle theory and practice." 2013.

“Failure to properly conceptualize the nature of knowledge assets condemns firms.”

Max Boisot (1943–2011) British academic and educator

Source: Knowledge Assets, 1998, p. 2

“In figure 3 we show the money and domestic asset market equilibrium schedules for given stocks of each of the assets. Along MM the domestic money market is in equilibrium. Higher interest rates reduce money demand so that equilibrium requires a depreciation and thus a rise in the domestic currency value of foreign assets and - hence wealth. The exchange rate thus plays a balancing role by affecting the valuation of assets.”

Rudiger Dornbusch (1942–2002) German economist

Source: Open economy macroeconomics, 1980, p. 14

Thomas Piketty photo

“Capital is defined as the sum total of nonhuman assets that can be owned and exchanged on some market.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 46.

Edsger W. Dijkstra photo

“Besides a mathematical inclination, an exceptionally good mastery of one's native tongue is the most vital asset of a competent programmer.”

Edsger W. Dijkstra (1930–2002) Dutch computer scientist

1970s, How do we tell truths that might hurt? (1975)

“Never work for a company that says people are its most important asset. If you wanted to get a mortgage and you said that your only asset was people you would end up living in a tent.”

Guy Browning (1964) British comedian

People, Office Politics (2006).

Akio Morita photo

“More people are interested in trying to shuffle paper assets around than building lasting assets by producing real goods.”

Akio Morita (1921–1999) Japanese businessman

Akio Morita (1989) in: Peter Krass ed. (2000) The Book of Management Wisdom: Classic Writings by Legendary Managers. p. 235.

Related topics