Evolution of subsidiary competences: Extending the diamond network model

    Research output: Working paperResearch

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    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.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherSamfundslitteratur
    Number of pages29
    ISBN (Print)8791815290
    Publication statusPublished - 2006

    Cite this

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    title = "Evolution of subsidiary competences: Extending the diamond network model",
    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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    author = "{Geisler Asmussen}, Christian and Torben Pedersen and Charles Dhanaraj",
    year = "2006",
    language = "English",
    isbn = "8791815290",
    publisher = "Samfundslitteratur",
    address = "Denmark",
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    Evolution of subsidiary competences : Extending the diamond network model. / Geisler Asmussen, Christian; Pedersen, Torben; Dhanaraj, Charles.

    Frederiksberg : Samfundslitteratur, 2006.

    Research output: Working paperResearch

    TY - UNPB

    T1 - Evolution of subsidiary competences

    T2 - Extending the diamond network model

    AU - Geisler Asmussen, Christian

    AU - Pedersen, Torben

    AU - Dhanaraj, Charles

    PY - 2006

    Y1 - 2006

    N2 - 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.

    AB - 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.

    KW - virksomhed&politik

    M3 - Working paper

    SN - 8791815290

    BT - Evolution of subsidiary competences

    PB - Samfundslitteratur

    CY - Frederiksberg

    ER -