Identifying the core competence as a key requirement for business model innovation. The case of Airlines as a service industry

Core competencies form the basis of an organization’s skills and the basic element of a successful strategic execution. Identifying and strengthening the core competencies enhances flexibility thereby strategically positioning a firm for responding to competition in the dynamic marketplace and can be the difference in quality among firms that follow the same business model. A correct understanding of the concept of business models, employing the right core competencies, organizing them effectively and building the business model around the competencies that are constantly gained and assimilated can result in enhanced business performance and thus having implications for firms that want to innovate their business models. Flexibility can be the firm’s agility to shift focus in response to external factors such as changing markets, new technologies or competition and a firm’s success can be gauged by the ability it displays in this transition. Although industry transformations generally emanate from technological changes, recent examples suggests they may also be due to the introduction of new business models and nowhere is it more relevant than in the airline industry. An analysis of the business model flexibility of 17 Airlines from Asia, Europe and Oceania, that is done with core competence as the indicator reveals a picture of inconsistencies in the core competence strategy of certain airlines and the corresponding reduction in business performance. The performance variations are explained from a service oriented core competence strategy employed by airlines that ultimately enables them in having a flexible business model that not only increases business performance but also helps in reducing the uncertainties in the internal and external operating environments. This is more relevant in the case of airline industry, as the product (the air transportation of passengers) minus the service competence is all the same.

Strategic rigidity and foresight for technology adoption among electric utilities

The variation in the adoption of a technology as a major source of competitive advantage has been attributed to the wide-ranging strategic foresight and the integrative capability of a firm. These possible areas of competitive advantage can exist in the periphery of the firm's strategic vision and can get easily blurred as a result of rigidness and can permeate in the decision-making process of the firm. This article explores how electric utility firms with a renewable energy portfolio can become strategically rigid in terms of adoption of newer technologies. The reluctance or delay in the adoption of new technology can be characterized as strategic rigidness, brought upon as a result of a firm's core competence or core capability in the other, more conventional technology arrangement. This paper explores the implications of such rigidness on the performance of a firm and consequently on the energy eco-system. The paper substantiates the results by emphasizing the case of Iberdrola S.A., an incumbent firm as a wind energy developer and its adoption decision behavior. We illustrate that the very routines that create competitive advantage for firms in the electric utility industry are vulnerable as they might also develop as sources of competitive disadvantage, when firms confront environmental change and uncertainty.

Best practices for school leaders: Implementation of a profesional competence model for school management in Chile

In Chile, during the last three decades there has been a strong decentralization process whose main objective has been to improve the management of schools through the transfer of responsibilities and resources of education and thus improve the outcome of learning, reducing equity gaps between schools and territories. This is how, there has been an evolution of school principals¿ professional profile from an administrative to a management approach, in which principals have become project managers of educational projects. From a competence model for school leaders, based on IPMA guidelines, the present article presents an analysis of best practices for school management, allowing to generate a link between competencies and school management, from the perspective of project management. Results showed that the different competence elements, have relative weights according to the different practice fields, and that this analysis can be considered as a strategic element in educational project planning and development.

Best practices for school leaders: implementation of a professional competence model for school management in Chile

In Chile, during the last three decades there has been a strong decentralization process whose main objective has been to improve the management of schools through the transfer of responsibilities and resources of education and thus improve the outcome of learning, reducing equity gaps between schools and territories. This is how, there has been an evolution of school principals¿ professional profile from an administrative to a management approach, in which principals have become project managers of educational projects. From a competence model for school leaders, based on IPMA guidelines, the present article presents an analysis of best practices for school management, allowing to generate a link between competencies and school management, from the perspective of project management. Results showed that the different competence elements, have relative weights according to the different practice fields, and that this analysis can be considered as a strategic element in educational project planning and development.