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Host-country environment and subsidiary competence: Extending the diamond network model

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  • Christian Geisler Asmussen

    (Center for Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark)

  • Torben Pedersen

    (Center for Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark)

  • Charles Dhanaraj

    (Kelley School of Business, Indiana University, Indianapolis, USA)

Abstract

We extend the “centers of excellence” concept to address the diversity and multidimensionality of subsidiary competence. Using Rugman and Verbeke's diamond network model, we hypothesize the contingencies influencing the links between host-country environments and subsidiary competence configuration, and provide evidence from more than 2000 subsidiaries in seven European countries. Our results provide new insights into how multinational enterprises can overcome “unbalanced” national diamonds by acquiring complementary capabilities across borders. Journal of International Business Studies (2009) 40, 42–57. doi:10.1057/palgrave.jibs.8400420

Suggested Citation

  • Christian Geisler Asmussen & Torben Pedersen & Charles Dhanaraj, 2009. "Host-country environment and subsidiary competence: Extending the diamond network model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(1), pages 42-57, January.
  • Handle: RePEc:pal:jintbs:v:40:y:2009:i:1:p:42-57
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