Host-Country Environment and Subsidiary Competence:Extending the Diamond Network Model

Key Points

• Subsidiary competence is shaped by the host-country environment, influencing overall competitive advantage.
• A theoretical framework based on the diamond network model supports this relationship, highlighting critical factors.
• The study emphasizes the importance of adapting to local conditions for successful internationalization efforts.
• Understanding these dynamics may enable businesses to enhance their global competitiveness by leveraging local strengths.