Emeritus Professor of Marketing
The conceptual debate between Hamel and Pralahad (1990) and Stalk, Evans and Schulman (1992) in Harvard Business Review focused the attention of both scholars and executives on the role of those bundles of assets, resources and processes that serve as the basis for a firm's strategic direction.In this paper, the authors develop a methodological approach that relates competences to customer value. Their approach builds on research in the area of multi-attribute utility theory and provides a number of distinctive benefits. First, it is rigorous and consistent. Second, it is built on economic and behavioral decision theory. Third, it provides a direct and measurable link between measured competences and customer value.Although nowhere near a completed methodology, their approach provides the beginning of a stream of thinking that they hope will stress the importance of the measurement and testing of strategic concepts in a scientifically rigorous manner.