Regional economic integration and international strategic alliances: Evidence from the EU

Regional economic integration has been a major area of research in the field of international economics and international trade, with little attention being paid to the impact of these economic collaborations on the organizational strategies of firms within the economically integrated regions. By building on the organization-environment relationship paradigm, this paper aims to address the impact of environmental changes associated with economic integration, market commonality and currency commonality, on the patterns and structures of strategic alliances within members of the economic community. Using mixed linear models, the study looks at changes associated with the integration of the European Union and their effects on international alliances within the integrated area and among the various member countries. The findings suggest that the emergence and the adoption of economic integration policies at the country level do impact the patterns and structures of strategic alliances practiced between member countries. Specifically, the adoption of common market policies among members of an economic community has implications on the pattern and structure of strategic collaborative relationships of firms within these member countries. While regional economic integrations have accelerated, theoretical and empirical research addressing their impact on multinational strategies has yet to catch up.