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Capabilities Resources are not productive on their own. A brain surgeon is close to unseless without a radiologist, anesthetist, nurses, surgical instruments, imaging equipment, and a host of other resouces. \we use the term organisational capalibities to refer to a firm's capability to play the violin, ice stake, and speak Mandarin, so the organisation may have the capability to manufacture widgets, distribute them throoughout the Baltic states, and hedge its resulting foreign exchange exposure. The literature uses the terms " capabilitu" and "competence" interchangeably. The key differences are the adjectives used to modify the terms. Thus, Selznick used distinctive competence to descrie those things that an organisation does particularly well relative to its competitors., and Igor Ansoff used the same term to analyse the basis of firm's growth strategies. Hamel and Prahalad coined the term core competences to distinguish those capabilities fundamental to a firm's performance and strategy. The value of...

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