An exploratory model of competence and performance is presented and tested
in the study. Competence in marketing, product innovation manufacturing, an
d human resource development across a list of 42 items have been analyzed,
Markating competence was ranked high by Chinese managers. Elements contribu
ted to manufacturing competence regarding process reengineering have not be
en emphasized as much by Chinese managers. Human resource competence, on th
e other hand, has been found to be significantly correlated with performanc
e. The results clearly show a trend moving from the state-planned economy t
o the market economy.