October 2017 Vol. 5 No.3

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Original Research Article

The impact of Distinctive Competencies on Competitive Advantage: An empirical study on Detergents Manufacturing Companies in Jordan

Abdullah Mhd Alhares, Dr. Sabah H. Ali-Agha* and Prof. Dr. Shawqi Naji Jawad

Amman Arab University, P. O. Box 2234, Amman 11953 Jordan

*Corresponding Author’s E-mail: sabah_agha@yahoo.co.uk

Accepted October 18, 2017

Abstract

Most industries nowadays are facing an ever-increasing level of environmental uncertainty. They are becoming more complex and more dynamic. To survive with such a competitive environment, organizations should create values through attaining and sustaining competitive advantages. So businesses should know which aspects could have the effective impact on competitive advantage. The main objective of this paper is to examine the impact of distinctive competencies’ dimensions (capabilities, competencies, and core competencies) on competitive advantage. Two types of competitive advantage were studied: Cost efficiency and Quality. The suggested model was tested in the context of detergent manufacturing companies in Jordan. The survey was administered to a total of 148 managers. Results indicate that it appears to be consistent and reliable scales. The findings have provided empirical support for the contention that competitive advantage is positively and significantly affected by distinctive competences. Results confirm the varying importance of distinctive competencies dimensions on competitive advantage. It has also been found that core competencies have higher impact on competitive advantage than other dimensions. To remain competitive and improve organizational performance, managers can try to strength their competitive advantage by managing each dimension of distinctive competencies i.e. capabilities, competencies, and core competencies.

Keywords: Distinctive competencies, Capabilities, Core competencies, Competitive advantage