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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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    References listed on IDEAS

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    1. repec:exl:25engi:v:28:y:2017:i:1:p:35-46 is not listed on IDEAS
    2. Oh, Chang Hoon & Sohl, Timo & Rugman, Alan M., 2015. "Regional and product diversification and the performance of retail multinationals," Journal of International Management, Elsevier, vol. 21(3), pages 220-234.
    3. Oh, Chang Hoon & Sohl, Timo & Rugman, Alan M., 2015. "Regional and product diversification and the performance of retail multinationals," Journal of International Management, Elsevier, vol. 21(3), pages 220-234.
    4. Lo, Fang-Yi & Fu, Pao-Hung, 2016. "The interaction of chief executive officer and top management team on organization performance," Journal of Business Research, Elsevier, vol. 69(6), pages 2182-2186.
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    6. repec:eee:worbus:v:52:y:2017:i:6:p:842-853 is not listed on IDEAS
    7. Lo, Fang-Yi & Lin, Feng-Jyh, 2015. "Advantage transfer on location choice and subsidiary performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1527-1531.

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