Regional integration and the international strategies of large European firms |
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| Authors: | Chang Hoon Oh Alan M Rugman |
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| Institution: | 1. Faculty of Business, Brock University, 500 Glenridge Avenue, St. Catharines, Ontario, L2S3A1, Canada;2. School of Management, Henley Business School, University of Reading, Henley-on-Thames, Oxon, RG9 3AU, United Kingdom;1. Vienna University of Economics and Business, Institute for International Marketing Management, Welthandelsplatz 1, Building D2, Entrance A, 2nd floor, 1020 Vienna, Austria;2. Department of Business and Public Administration, University of Cyprus, University Avenue 1, P.O. Box 20537, CY-1678 Nicosia, Cyprus;3. School of Management and Business, King’s College London, Franklin-Wilkins Building, 150 Stamford Street, London SE1 9NH, UK;1. King’s College, University of London, The Strand, London, WC2R 2LS, United Kingdom;2. Alliance Manchester Business School, the University of Manchester, Booth Street East, Manchester M13 9SS, United Kingdom;3. College of Business, Florida International University, 448 Mango Building, 11200 SW 8 Street, Miami, FL 33199, USA;4. INCAE Business School, Apartado 960-4050, Alajuela, Costa Rica;5. Lappeenranta University of Technology, School of Business and Management, POB 20, Lappeenranta, Finland;1. Institute for Retail Studies, University of Stirling Management School, University of Stirling, Stirling, Scotland, FK9 4LA, UK;2. Department of Geography, National University of Singapore, 1 Arts Link, Kent Ridge Crescent, 117570, Singapore |
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| Abstract: | From the perspective of regional economic integration we decompose international strategy into regional integration strategy and three types of global strategy (global sales, global production, and pure global integration). Using 1100 firm-year observations we find that 60% of the largest European firms pursue a regional integration strategy. We also find that global strategies vary. We examine the firm specific factors that affect global strategies. In general, R&D capability determines a global production strategy, whereas firm size and managerial capability determine both a global sales strategy and a pure global integration strategy. |
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