Abstract

This article examines the core competencies of twelve leading multinational companies. It explores their competencies, how they were developed, and how they are shifting over time. Successful companies rely on three types of competencies: superior technological know-how, reliable processes, and close external relationships. Different approaches are needed to develop each types of competency. While these firms have historically relied on technological know-how and reliable processes, they are planning more close external relationships for the future. External relationships help these firms strengthen and extend their traditional competencies while responding to the demands of globalization, mass customization, enhanced quality, and rapid technological change.