ABSTRACT

Seen from elsewhere in the world, the European space, with particular reference to Western European countries, 1 has often been perceived as the stronghold of welfare societies. Despite some economic and institutional differences (Hall 2007), most European countries have often been viewed as characterised by an overall high quality of life, an outstanding level of education and strong national insurance systems for health, pensions and other social commodities (Barcevičius et al. 2015). Historically, moreover, most European governments have afforded, as compared to more liberal market economies, an exceptional level of protection for workers’ rights, with labour-related issues being negotiated with governments, rather than with companies, and collective interests being frequently pursued through business associations and unions (e.g. Alesina and Glaeser 2006). Also, some European social programmes have usually been highly redistributive, while European tax systems are more progressive than in other contexts and European countries are known for their strong regulatory systems that are meant to protect the poorest and most marginalised component of European society (Alesina et al. 2001; Majone 1994). On these grounds, the business literature often assumes that European countries possess strong institutions, as compared to other contexts, also due to the convergence pressures at the EU level (see e.g. Matten and Moon 2008; Tregaskis and Brewster 2006, among others).