Competence Development in Multinational Companies: Careers, capabilities and institutional frameworks

Building on the work of Penrose (1959), Richardson (1960; 1972) and others, recent contributions to the theory of the firm have emphasised the importance of endogenously developed capabilities and competences for building sustained competitive advantages (see, for example, Foss and Knudsen, 1996). In this approach, firms develop idiosyncratic knowledge and routines that provide superior capabilities through the continuing authoritative coordination of work activities and problem solving teams, both within and across formal legal boundaries (Loasby, 1996; 1999)....