Management Development: Using Internal or External Resources in Developing Core Competence

Abstract

This article defines management as a source of organizational competitive advantage and from the view that managers are some of the employees most vital to a firm. According to influential theories in the field of strategic management, such human assets should be protected, governed, and developed internally. In contrast to the traditional view of core competence, this article suggests that firms have to use external as well as internal resources to develop employees with unique and valuable capabilities and skills. The article makes the argument that a mix of internal and external developmental resources might be an important mechanism in the creation of management development as a dynamic capability or as a means to develop human assets that are one of the main sources of competitive advantage.