Core competencies is
the new buzz word today, it is where any organization would establish it as it
is the driving force for the organization to achieve a competitive advantage.
The focus of the organizations has shifted from technological advancements to developing
employees competencies. This is because many organizations believe that their
greatest asset is their employees. Nurturing and developing their competence
will ensure a sustainable competitive advantage. This study examines the role
of core competencies in ensuring the organizations competitive advantage. A
study has been conducted among the executive level at Hartalega Sdn Bhd, the
world’s largest Nitrile Glove manufacturing company. This study is motivated by
three research questions, which are; What are the organization’s competencies
awareness and understanding; namely the shared vision, cooperation and
empowerment dimensions?; What are the organization’s understanding on the
important of the competitive advantage; namely the flexibility and
responsiveness dimensions? What are the impacts of the core competency on the
organization’s competitive advantage? This study offers 6 hypotheses, which are
the following; H0a: Shared vision has a direct influence on the company’s
flexibility; H0b: Shared vision has a direct influence on the company’s
responsiveness; H0c: Cooperation has a direct influence on the company’s
flexibility; H0d: Cooperation has a direct influence on the company’s
responsiveness; H0e: Empowerment has a direct influence on the company’s
flexibility; H0f: Empowerment has a direct influence on the company’s
responsiveness. A total of 170 executives participated in this survey that
covered all the departments. The findings of this study show that the core competencies
have a positive relationship towards the competitive advantage. The hypotheses
tested reveal that H0b and H0d do not show a positive relationship while the
other 4 hypotheses concur with and has a direct positive relationship. This
study has a great significance for Hartalega as it will help the management
team as well as the respective department’s mangers to device suitable programs
and activity to capitalize on these findings, thus ensuring its competitive
advantage.