Core Competence in Developing Sustainable Competitive Advantage

The competitive and exceedingly demanding environment of the present-day global market requires any organization entering the realm of global economy to have a unique competitive advantage that will place it on the map of the target market and allow it to survive the onslaught of multiple competitors. As a result, the Sustainable Competitive Advantage (SCA) has been deemed as an essential aspect of any organization’s performance (Khouroh et al., 2020). In turn, the development of the SCA is typically predicated upon several core competencies that are seen as instrumental in building the values with the help of which a relevant SCA can be developed in an organizational environment (Khouroh et al., 2020).

Due to their focus on fostering the acquisition of values and perspectives associated with responsibility and personal accountability, the seven core competencies in question shape employees’ and managers’ attitudes toward sustainability, therefore, leading to increased efficacy of quality management and the reduced effect on the environment, therefore, causing an organization to develop a strong competitive advantage.

Critical Thinking/Problem Solving

Critical thinking, as well as a critical approach to problem-solving, serves a vital function in building a competitive advantage based on the concept of sustainability in the target market. Specifically, it allows a company to approach the issue of sustainable development and the creation of an environmentally friendly strategy form a new standpoint by seeking innovative solutions to some of the current issues within the target industry.

For example, creative management of issues associated with industrial waste occurring as a result of manufacturing processes can be seen as a proper application of critical thinking and problem solving to developing a sustainable competitive advantage (Seddighi & Mathew, 2020). The described core competency leads directly to brainstorming opportunities for addressing the issues associated with the mismanagement of waste and the allocation of organizational resources.

Oral/Written Communications

At first glance, the idea of improving communication within a company is not linked inextricably to the process of building a SCA within a company. However, the further analysis indicates that the two notions are, in fact, connected. Specifically, by improving communication, one is likely to minimize the instances of miscommunication and, therefore, mismanagement of resources. Consequently, a more reasonable and sustainable approach toward the allocation of corporate resources is expected.


Similarly, the promotion of coordination in the actions of staff members is believed to have a direct impact on the efficacy of building a proper SCA. Namely, with the focus on teamwork and collaboration, one is likely to improve the communication process and the coordination of team members’ actions. As a result, the levels of waste and mismanagement of resources will be driven to zero, leading to a more sustainable approach toward organizational processes (Hossain et al., 2020). Thus, a company gains an opportunity to develop a viable SCA.

Information Technology Application

Likewise, the integration of technological advancements into the corporate setting can contribute to the development of SCA. Being one of the seven core competencies, the proper use of technological innovations suggests that the tools in question should be used to advance communication within a team. Thus, proper management of resources and the resulting increase in sustainability and SCA, in particular, is expected.


The importance of leadership as one of the essential core competencies contributing to the development of SCA in an organization must not be downplayed, either. Leadership serves as the means of providing staff members with the direction and motivation for implementing key tasks leading to the impeccable functioning of the organization. More importantly, the proper use of the Transformational Leadership framework will incentivize employees to perform increasingly better by developing new skills and enhancing their focus on quality (Ashoor, 2021). As a result, a company will gain important leverage in the target market compared to other organizations that have looser grip on the quality assurance process (Chen et al., 2020).

Consequently, the application of a proper leadership technique contributes to the increase in SCA. Furthermore, the introduction of the leadership framework that encourages managers to view staff members as the company’s major asset helps to increase employees’ engagement and loyalty to the company. Therefore, contributing to improved talent management and leading to better and more responsible performance and the subsequent increase in SCA.

Professionalism/Work Ethic

Encouraging staff members to comply with the set standards for ethical decision-making, the principles of professionalism and work ethics contribute directly to compliance with quality standards, continuous professional development, and, therefore, the emergence of SCA.

Career Management

Finally, the focus on career management as the extension of talent management should be regarded as one of the core competencies contributing to the enhancement of SCA. With the focus on career management, a leader is likely to inspire staff members to be more efficient in the performance of their work-related tasks. As a result, the quality of their performance and the overall production quality will rise, leading to an increase in SCA.

With the emphasis on the creation of qualities that encourage employees and managers to engage in decision-making based on ethical approaches toward environmental concerns and resource allocation, the seven core competencies accepted by NACE should be seen as the platform for building a competitive advantage in the global market (National Association of Colleges and Employers, n.d.).

Indeed, with the increase in the role of sustainable business strategies, companies that have proven to adopt sustainable policies and align with environmentally friendly standard have been viewed as more worthy of customers’ respect and appreciation, therefore, gaining greater traction in the global market and attracting the attention and loyalty of multiple potential buyers. Therefore, the seven core competencies under analysis are related directly to the process of building a sustainable competitive advantage in the target market.


Ashoor, W. A. (2021). Transformational leadership and innovation for competitive advantage in large firms and SMEs. International Journal of R&D Innovation Strategy (IJRDIS), 3(1), 1-12. Web.

Chen, R., Lee, Y. D., & Wang, C. H. (2020). Total quality management and sustainable competitive advantage: serial mediation of transformational leadership and executive ability. Total Quality Management & Business Excellence, 31(5-6), 451-468. Web.

Hossain, M. S., Kannan, S. N., & Raman Nair, S. K. K. (2020). Factors influencing sustainable competitive advantage in the hospitality industry. Journal of Quality Assurance in Hospitality & Tourism, 22(6), 1-32. Web.

Khouroh, U., Sudiro, A., Rahayu, M., & Indrawati, N. (2020). The mediating effect of entrepreneurial marketing in the relationship between environmental turbulence and dynamic capability with sustainable competitive advantage: An empirical study in Indonesian MSMEs. Management Science Letters, 10(3), 709-720. Web.

National Association of Colleges and Employers. (n.d.). What is career readiness? Web.

Seddighi, H. R., & Mathew, S. (2020). Innovation and regional development via the firm’s core competence: some recent evidence from North East England. Journal of Innovation & Knowledge, 5(4), 219-227. Web.

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