Empirical Study on the Evolutionary Process of Dominant Capabilities of Non-state-owned Enterprises in the PRC

Abstract

Empirical study on the evolutionary process of dominant capabilities of non-state-owned enterprises (NSOEs) is made out in this paper. It is examined that the dominant capabilities underlying the competence vary in the stages of enterprise growth. The results of study indicate that entrepreneur's innovation capability is one dominant capability in the growth phase, marketing capability and human resource management capability are dominant capabilities in mature phase, while guarantee capability for system and funds are the dominant ones in decline phase. Learning capability runs through the whole evolutionary process, and it is the foundation of the other capabilities.It's suggested that NSOEs should adjust their structure of capabilities through uninterrupted learning according to practical condition of enterprises in practice. And the NSOEs should actively cultivate their dominant capabilities in different stages so as to form competence. It is important for NSOEs to gain competitive advantages and realize sustainable development.