Title: Spinning a good yarn: the identification of core competencies at Courtaulds

Authors: Max Boisot, Terry Lemmon, Dorothy Griffiths, Veronica Mole

Addresses: Imperial College, London University, 53 Princes Gate, Exhibition Road, London SW7 2PG, UK; E.S.A.D.E, Barcelona, Spain. ' Head of Research and Technology, Courtaulds, PLC, UK. ' Imperial College, London University, UK. ' Imperial College, London University, UK

Abstract: For the third time in Courtauld|s long history, the firm may have stumbled on to a new cellulosic fibre with considerable commercial potential. In this, as in the preceding cases, the basic chemistry that led to the discovery of the fibre was carried out outside the firm. Also, as in the preceding cases, the firm took what was a laboratory product and developed it to the point where it could be exploited commercially. It was during this scaling up process that Courtaulds came to understand the new fibre|s many potential applications. This paper, building on academic research currently in progress at Courtaulds, explores the hypothesis that the firm has a core competence in chemical engineering, the process of moving a new product from the laboratory bench into different markets. The competence involves managing a paradox: development has to focus on a series of quite specific and often quite limited product applications while scaling up has to allow for a product|s generic potential. In effect what must be done is to fine tune a new fibre|s properties in order to adapt them to the requirements of a large number of niches, while simultaneously assessing the likely level of aggregate demand of all possible niche applications taken together before these can be fully known, in order to act pre-emptively in the market. Using a conceptual framework developed by one of the authors, the paper will explore the implications of possessing such a core competence for the management and organization of the firm|s existing businesses. It will be argued that one major benefit of correctly identifying technology-based competences is that it gives a legitimate voice to the longer term claims of technology management within the firm, a voice that is often drowned out by the clamour created by short term commercial pressures.

Keywords: core competencies; Courtaulds; cellulosic fibre; commercialisation; chemical engineering; technology-based competences; technology management.

DOI: 10.1504/IJTM.1996.025442

International Journal of Technology Management, 1996 Vol.11 No.3/4, pp.425 - 440

Published online: 22 May 2009 *

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