Regional integration and the international strategies of large European firms

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.

► 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).
► We find that 60% of the largest European firms pursue a regional integration strategy in 2000–2007.
► We examine the firm specific factors deciding global strategies versus regional strategy.
► R&D capability determines a global production strategy, whereas firm size and managerial capability determine a global sales strategy, as well as a pure global integration strategy.