The Root Cause of the Hierarchical Structure of Enterprise Capabilities

  • Danhong Huang, Weidong Li

Abstract

Based on the correlation between an enterprise’ unique resources and capabilities in its functional influence, resource school specialized in strategic management artificially constructs a hierarchical structure that reflects enterprise capabilities. In fact, an enterprise’s unique resources is substantially tacit knowledge, whereas the essence of an enterprise’ multiple capabilities is a different type of knowledge in the form of tacit knowledge, explicit knowledge or self-transcending knowledge, all of which form an interdependent hierarchical structure during knowledge conversion process.

Published
2020-08-01
Section
Articles