Analyzing the Effects of Individual Competencies on Performance: a Field Study in Services Industries in Turkey

This study aims to analyze the effects of individual competencies on performance in the services industries in Turkey. A survey research was conducted in this study. The survey was addressed to the companies in service sector in Turkey, and the questionnaires have been distributed to 3000 employees in 30 companies and 2679 completed questionnaires were returned, representing a response rate of 89 percent. An exploratory factor analysis (EFA) was used to assess the influence of individual competencies on performance. The findings revealed that there is a positive relationship between competencies and individual performance. Furthermore, core competencies are appeared to have the most significant effect on individual performance. The results of this study provided some empirical evidences referring the effects of individual competencies on organizational performance. One of the most surprising results of the study is that, when it comes to organizational performance, managerial competencies appeared to be the most significant factor. The survey was not comprehensive to include all possible service sectors in Turkey. This research is limited to banking, cargo, communication, food and catering, finance, publishing, retail, IT, and tourism companies. Thus, the results cannot be generalized to other industrial sectors that were not part of this study. This study analyzes the impact of individual competencies on performance whether it is high or low. The qualitative approach of this study produces rich information about employee’s competency and performance. The paper contains useful information for management practitioners about maintaining and increasing the individual competency to increase organizational performance.