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Regional integration and the international strategies of large European firms

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  • Oh, Chang Hoon
  • Rugman, Alan M.

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.

Suggested Citation

  • Oh, Chang Hoon & Rugman, Alan M., 2012. "Regional integration and the international strategies of large European firms," International Business Review, Elsevier, vol. 21(3), pages 493-507.
    • Handle: RePEc:eee:iburev:v:21:y:2012:i:3:p:493-507
    DOI: 10.1016/j.ibusrev.2011.05.009
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