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Firms that develop and maintain high levels of competency are ultimately more competitive than firms that depend on brawn, luck, and other fatal expenses.[1] Although competitive campaigns are often thought of in terms of charismatic leaders and marketing campaigns, the reality is that firms struggle to achieve the "magic 3" - high performance, high accountability and high levels of shared commitment, and rarely are firms predicated on these factors attaining a consistent level of performance over time. Barney & Henderson address this by developing a virtual organization.
The key resource that is the cornerstone of a firm's competitive advantage is human capital: the aggregate of a firm's knowledge and skills. Organizing resources to form a virtual organization makes this knowledge available to others. The value of the virtual organization is revealed by the changes that it effects in a firm's competitive position. The firm's competitive advantage derives from the existence of a carefully planned and carefully executed synergy of knowledge. Organising resources so as to enhance and utilize the acquired skills and knowledge can be significant to achieving sustainable competitive advantage.
The knowledge acquired in the process of that organization would have to be carefully managed and developed into a state of skill and knowledge that is so imporant to operating in a modern competitive environment.
Organizational performance can be measured based on the availability of competitive advantages. Organizations that possess competitive advantages access resources that are scarce among competitors. Hence, acquired competitive advantages constitute a good indication of performance. But, the acquisition and application of competencies are difficult to determine. Enterprises have to compete against rival firms that use similar competencies, and examine the market to identify competitors' strengths and weaknesses. Therefore, enterprises need a strategy to identify the key competencies that will give them a competitive advantage. d2c66b5586