Exploring Relationships between Corporate Core Competence, Corporate Strategy, and HRM Practices in Training Institutions

Abstract

This study examines the interrelationships between firm's core competence, human resource practices and corporate strategy. Through the qualitative interview with four short-term training institutions in Taiwan, the results of this show that these firms indeed systematically arrange their human resource practices to support corporate strategy and foster needed core competence. When a company sets its strategy on selling present product mix in familiar market segment, it tends to emphasize the efficient operational ability as the main core competence. On the other side, when a company sets its strategies on exploring new markets and new products, it tends to regard its key core competence as innovative abilities as well as operational flexibility. The corresponding human resource practices in work design, training, promotion and compensation can appropriately nurture employee's core competences to implement corporate strategy.