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FINAL YEAR PROJECT

EFFECT OF CORE COMPETENCE ON COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE

PRESENTED BY:

SYED AKBAR RAZA

SUPERVISOR: SIR MICHAEL SIMON

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The concept of core competence has implications at the

strategic level as the rms should systematically workupon identifying their core competencies and developingthem for sustainable competitive advantage.

INTRODUCTION

To examine the eect of core competence on competitiveadvantage variables in the pharmaceutical industry ofKarachi.

To test the eect of competitive advantage on theorganizational performance of the pharmaceutical industryof Karachi.

To investigate the eect of core competence on the

organizational performance of the pharmaceutical industryof Karachi.

OBJECTIVES

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RESEARCH DESIGN: Quantitative research.

PROCEDURE:

Questionnaire survey .

RESEARCH METHODOLOGY

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POPULATION:

The managers and medical reps of ovartis! "#K and $bbott of Karachi.

The total population is %&'' employees working in ovartis! "#K and

$bbott of Karachi. .

RESEARCH METHODOLOGY

SAMPLE SIZE AND SAMPLE METHOD:

#ample size is %&'

#ampling method is convenience sampling

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INDEPENDENT VARIABLES: (ore competence (ompetitive advantage

DEPENDENT VARIALBE: (ompetitive advantage )rganizational *erformance

VARIABLES

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THEORETICAL FRAMEWORK

CORE

COMPETENCE

COMPETITIVE

ADVANTAGE

ORGANIZATIONAL

PERFORMANCE

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Following are the hypothei !e"elope! #or teting$

H1: (ore (ompetence has positive eect on)rganizational *erformance.

H2+ (ore (ompetence has positive eect on(ompetitive $dvantage

H3+ (ompetitive advantage has positive eect on)rganizational *erformance.

HYPOTHESIS

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REGRESSION ANALYSIS OF

OVERALL ORGANIZATION

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Mo!el %&''ary

Model R R SquareAdjusted R

SquareStd. Error of the

Estimate

1.714a .510 .499 .26563

a. redi!tors" #$o%sta%t&' Em(o)erme%t' Shared *isio%' $oo(eratio%

REGRE%%ION ANAL(%I% OF CORE COMPETENCE ON ORGANIZATIONAL PERFORMANCE$

INTERPRETATION$

ow looking at the regression table! in which the

value or , s-uare is .&%' which indicates that &%of variation in )rganizational *erformance can beexplained by the (ore (ompetence.

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Mo!el %&''ary

Mo!el R R %)&are A!*&te! R %)&are%t!+ Error o# the

Eti'ate

,+-.,a +,/0 +,11 +2-.0,

Pre!i3tor$ 4Contant56 Reponi"ene6 Fle7i8ility

REGRE%%ION ANAL(%I% OF COMPETITIVE ADVANTAGE ON ORGANIZATIONAL PERFORMANCE$

INTERPRETATION$

ow looking at the regression table! in which thevalue or , s-uare is .%/0 which indicates that %/.0

of variation in )rganizational *erformance can beexplained by the (ompetitive $dvantage.

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Mo!el %&''ary

Mo!el R R %)&areA!*&te! R

%)&are%t!+ Error o# the

Eti'ate

,+9:1a +.91 +.-: +.-1-;

Pre!i3tor$ 4Contant56 E'power'ent6 %hare! Viion6 Cooperation

REGRE%%ION ANAL(%I% OF CORE COMPETENCE ON COMPETITIVE ADVANTAGE$

INTERPRETATION$

ow looking at the regression table! inwhich the value or , s-uare is .1&2 whichindicates that 1&.2 of variation in(ompetitive $dvantage can be explainedby the (ore (ompetence

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REGRE%%ION ANAL(%I% OF A

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Mo!el %&''ary



Eti'ate

, +121a +-:9 +212 +22.1,


REGRESSION ANALYSIS OF CORE COMPETENCE ON ORGANIZATIONAL PERFORMANC

INTERPRETATION$

ow looking at the regression table! in

which the value or , s-uare is .3'& whichindicates that 3'.& of variation in)rganizational *erformance can beexplained by the (ore (ompetence.

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Mo!el %&''ary



Eti'ate

,+2-9a +,,; +:/0 +-:::1


REGRE%%ION ANAL(%I% OF COMPETITIVE ADVANTAGE ON ORGANIZATIONAL PERFORMANCE

INTERPRETATION$

ow looking at the regression table! in

which the value or , s-uare is .%%4 whichindicates that %%.4 of variation in)rganizational *erformance can beexplained by the (ompetitive $dvantage.

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Mo!el %&''ary



Eti'ate

, +-//a +..0 +,/. +.99/0


REGRE%%ION ANAL(%I% OF CORE COMPETENCE ON COMPETITIVE ADVANTAGE

INTERPRETATION$

ow looking at the regression table! in which thevalue or , s-uare is .110 which indicates that

11.0 of variation in (ompetitive $dvantage canbe explained by the (ore (ompetence.

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REGRESSION ANALYSIS OF GSK

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Mo!el %&''ary


%)&are%t!+ Error o#the Eti'ate

, +/91a +9/. +9-: +.-.1,

Pre!i3tor$ 4Contant56 E'power'ent6 %hare! Viion6Cooperation

REGRE%%ION ANAL(%I% OF CORE COMPETENCE ON ORGANIZATIONAL PERFORMANCE

INTERPRETATION$

ow looking at the regression table! in which

the value or , s-uare is .&/1 which indicatesthat &/.1 of variation in )rganizational*erformance can be explained by the (ore(ompetence.

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Mo!el %&''ary



Eti'ate

, +-9:a +.:2 +,1- +2./:,


REGRE%%ION ANAL(%I% OF COMPETITIVE ADVANTAGE ON ORGANIZATIONAL PERFORMANCE

INTERPRETATION$

ow looking at the regression table! inwhich the value or , s-uare is .1'5which indicates that 1'.5 of variationin )rganizational *erformance can beexplained by the (ompetitive$dvantage.

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Mo!el %&''ary



Eti'ate

, +-0,a +.2. +,/- +.11;-


REGRE%%ION ANAL(%I% OF CORE COMPETENCE ON COMPETITIVE ADVANTAGE

INTERPRETATION$

ow looking at the regression table! in whichthe value or , s-uare is .151 which indicatesthat 15.1 of variation in (ompetitive

$dvantage can be explained by the (ore(ompetence.

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REGRESSION ANALYSIS OF

NOVARTIS

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Mo!el %&''ary



Estimate

1 .767a .5++ .566 .23340

a. redi!tors" #$o%sta%t&' Em(o)erme%t' Shared*isio%' $oo(ertatio%

Regreion Analyi o# Core Co'peten3e on Organi>ational Per#or'an3e$

INTERPRETATION:

ow looking at the regression table! in which the valueor , s-uare is .&00 which indicates that &0.0 of

variation in )rganizational *erformance can beexplained by the (ore (ompetence.

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Mo!el %&''ary



Estimate

1 .470a .221 .194 .31+07

a. redi!tors" #$o%sta%t&' Res(o%si,e%ess' -lei/ilit

Regreion Analyi o# Co'petiti"e A!"antage on Organi>ational Per#or'an3e$

INTERPRETATION:

ow looking at the regression table! in which thevalue or , s-uare is .11% which indicates that 11.%of variation in )rganizational *erformance can be

explained by the (ompetitive $dvantage.

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Mo!el %&''ary



Eti'ate

, +990a +2,, +./- +.2021

a+ Pre!i3tor$ 4Contant56 E'power'ent6 %hare! Viion6 Cooperation

Regreion Analyi o# Core Co'peten3e on Co'petiti"e A!"antage$

INTERPRETATION:

ow looking at the regression table! in which the value or, s-uare is .5%% which indicates that 5%.% of variation in(ompetitive $dvantage can be explained by the (ore

(ompetence.

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This study provides initial empirical evidence of therelationship between core competence andorganizational performance.

(ore competencies are key component in enhancingthe organizational performance.

CONCLUSION

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The results of the regression analysis provide supportfor the three hypothesized relationships. (onsistentwith 6%! that core competence dimensions sharedvision! cooperation and empowerment has asignicant positive eect on )rganizational*erformance.

7n accordance with 61! there is '.%/0 variation oncompetitive advantage due to core competence which

is very low. 8or 65 there is '.1&2 variation onorganizational performance due to competitiveadvantage which is also very low.

CONCLUSION

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The study provides empirical evidence of the eect ofcore competence on organizational performance.

Therefore! pharmaceutical industry managers can usethe current ndings to develop strategies thatenhance organizational performance.

Taking the results in account the managers shouldfocus on creating core competence within theorganization to create competitive edge. This is one of

the variables that are not focused by organizations inKarachi as showed by empirical evidence. (reatingthis variable the managers will automatically increasetheir competitive advantage which is a generalassumption.

RECOMMENDATION

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