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This book contributes to the never-ending search for higher firm rents. Firms can be defined as a set of resources and skills. Traditional theory on strategic management hardly examines the unique and invaluable character of management competence as the key resource of the firm. Management competence is two-fold. It expresses the ability to manage and to reallocate resources according to changing market requirements. The resource structure of a firm does not stop at the company level, but has to include suppliers and customers as external resources. This book uses state-of-the-art methodologies to deliver empirical evidence for the value of management competence in leading to both operational excellence and financial success. Thereby, it is able to provide deeper insights into the quest on firm performance differences.