Management Functions and Core Competencies for Value Gain: Sri Iankan Gem and Jewelry Industry

Abstract

The focus of the research study is value gain. The purpose ofthe research is therdorc: to identify capable core competencies and a capable management function that would continue to generate economic value over tJme and at the same time. meet increasingly competitive pressures of the outside world. Generating an increasing value is a gradual elevation process that runs through a long period of time. The research study identifies three types of management functions required for value gain for short and long run. Initial set of growth strategies are required to build resources; a second set of management strategies are required to mould competitively capable core competencies for value generation, and a third set or strategies are required to retain the competitive advantage built over years to generate greater value in a fast changing competitive global business environment. The three strategic management functions would develop, integrate, augment, build core competencies and carry them from one stage to another in a continuous value accrual process to achieve greater value. The study was conducted through the identification of four research variables considered as resources set in motion in an integrated manner to generate value. The four variables are 'human', 'energy', 'knowledge' and 'capital'. The research design recognizes the four variables as cornerstones of value creating process and their combined efl"orts or cross functional activities build them to be competiti'11ely capable core competencies or a country to generate value over time. It is envisaged that their potential for long term competitive advantage depends on building and nurturing these core competencies in the value creating process. The final resulting 'value' represent 'entrepreneurs' assisted by 'intellectual capital', capable of 'innovation' for production of 'goods and services' in a country. Application of the research variables in the Sri Lankan gem and jewelry industry made it possible to highlight relevant strategic management functions for value generation.