Competence acquisition and competitive advantages an empirical study of small firms

Abstract: Competence acquisition in small firms is an under-researched area. The purposes of the entire thesis are, to describe how small firms acquire competence, to create an understanding by identifying factors that can affect how small firms handle competence acquisition, and why these factors affect the acquisition of competence, and to develop and test a model about competence acquisition. The study draws upon the resource-based view, the competence-based view, the strategy literature and entrepreneurship literature. A model about competence acquisition in small firms is developed and tested. Predictors identified are the entrepreneur's experiences, the entrepreneur's tolerance for ambiguity, the business concept and the competence base of the firm and these are found to be relevant factors for explaining actions in competence acquisition. In addition, time and trust are two aspects found to be central for understanding competence acquisition in small firms. A Pecking order in use of competence acquisition modesis apparent among small firms actions where an internal acquisition mode is the most used mode followed by the social network modes and the least used modes are the market acquisition modes.