Relating Customer Value to Strategic Competence: A Discrete Choice Measurement Approach
- Elsevier Pergamon
- Publication Type:
- Journal Article
- Research in Competence-Based Management, 2005, 1 pp. 15 - 45
- Issue Date:
The conceptual debate between Hamel and Pralahad (1990) in Harvard Business Review (68(3),79-93) and Stalk, Evans, and Schulman (1992) in Harvard Business Review (70(2), 4-9) focused the attention of both scholars and executives on the role of those bundles of assets, resources, and processes that serve as the basis for a firm's strategic direction. In this chapter, we develop a methodological approach that relates competences to customer value. Our approach builds on research in the area of multiattribute utility theory and provides a number ofdistinctive benefits. First, it is rigorous and consistent. Second, it is built on economic and behavioral decision theory. Third, it provides a direct and measurable link between measured competences and customer value. Although nowhere near a completed methodology, our approach provides the beginning of a stream of thinking that we hope will stress the importance ofthe measurement and testing of strategic concepts in a scientifically rigorous manner.
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