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Evolution of subsidiary competences : Extending the diamond network model.

Author: Christian Geisler Asmussen; Torben Pedersen; Charles Dhanaraj; Copenhagen Business School. CBS. Center for Strategi og Globalisering. SMG. Center for Strategic Management and Globalization. SMG.
Publisher: København, 2006.
Series: Working paper, 2006-11.
Edition/Format:   Print book : English
Summary:
We extend the 'centers of excellence' concept in the multinational corporation (MNC) literature to address the diversity and the multidimensionality of subsidiary competence and link such diversity to the host country environment. Using Rugman and Verbeke's (1993) diamond network model of competitive advantage of nations, we hypothesize the contingencies under which heterogeneity in host environments influences  Read more...
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Material Type: Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Christian Geisler Asmussen; Torben Pedersen; Charles Dhanaraj; Copenhagen Business School. CBS. Center for Strategi og Globalisering. SMG. Center for Strategic Management and Globalization. SMG.
ISBN: 8791815290 9788791815294
OCLC Number: 488347307
Description: 29.
Series Title: Working paper, 2006-11.

Abstract:

We extend the 'centers of excellence' concept in the multinational corporation (MNC) literature to address the diversity and the multidimensionality of subsidiary competence and link such diversity to the host country environment. Using Rugman and Verbeke's (1993) diamond network model of competitive advantage of nations, we hypothesize the contingencies under which heterogeneity in host environments influences subsidiary competence configuration. We test our model with data from more than 2,000 subsidiaries in seven Western European countries. Our results provide new insights on the evolution of subsidiary competence and how MNCs can overcome 'unbalanced' national diamonds by acquiring complementary capabilities across borders. Keywords: MNC environment, subsidiary competence configuration, industrial clusters, differentiated networks, subsidiary embeddedness.

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