A mechanism for external competence transfer to improve manufacturing system capabilities and market performance

Abstract

This study uses competence transfer theory to establish a mechanism for transferring competences into an organization from the outside. It develops a research framework that describes the impact of communication on a firm's knowledge base and as well as its ability to bring external competence into the firm. Data were collected in the US from 288 manufacturing companies. The mechanism of competence transfer is empirically supported. As the level of transferred competences increase, a firm's manufacturing process competences including process automation, process integration, and process modularity increase. Furthermore, process competences lead to higher market performance.