Abstract: Although core competence theory has explained the formation of the competitive advantage effectively, it fails to give a satisfactory answer for the competitiveness transition. Therefore, it is necessary to develop the theory further. The entrepreneurial competence is considered as a core factor of the competitiveness model, and the relationship among the entrepreneurial competence, core competence, competitive advantage and performance is examined based on 283 valid questionnaires. The results disclose that even then core competence contributes to competitive advantage directly; on the other hand, the entrepreneurial operational competence not only promotes the competitive advantage directly, but also becomes the source of core competence.

Key words: core competence, entrepreneurial competence, competitive advantage, firm performance