Study on the Organizational Boundaries of Competence

Traditional organizational boundaries are challenged in a knowledge-based economy. New boundary conceptions should be developed as the demarcation between the organization and its environments. Analyzing organizational boundaries of competence under dynamic complex environment, the paper describes the organizational boundaries of competence fitting with organizational environment. Based on resource based view of the firm and organizational network theory, resources, network ties and network positions have effect on organizational boundaries of competence which are developed by combining the internal firm capabilities and external resources to enhance organizational performance.