Abstract
Firm integrative capability (FIC) is becoming critical for firms facing and winning fierce competition. On the basis of the definition of integration, the paper analyzes the process of firm integration from the perspective of systems engineering, examines the different types of integrations, and then discusses compositions of integrative capabilities. FIC is a systematic capability that integrates resources. Within a firm as a kind of engineering system, the relationship among resources integrations and dimensions of the integrative capabilities are explained. In the end, the paper also discusses relations of the capabilities that integrate different resources, elaborates the process that FIC forms the firm's competence, and the author holds that the FIC is the origin of firm competitive advantage. Future quantitative research also needs turn to systems engineering to analyze a firm as integrated system.
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