The institutional heterogeneity of Europe as a regional market

Authored by: Kalle Pajunen

The Routledge Companion to European Business

Print publication date:  July  2018
Online publication date:  July  2018

Print ISBN: 9781138226586
eBook ISBN: 9781315397306
Adobe ISBN:


 Download Chapter



Europe, and in particular the European Union, has integrated both politically and economically over recent decades (see Butt-Philip, Chapter 14 in this volume). However, it remains a continent consisting of 50 sovereign states with their distinct institutional characteristics. This institutional heterogeneity can impose major challenges for firms entering or operating in different European locations (cf. Jain et al. 2016; Kim and Aguilera 2016). Indeed, researchers have demonstrated that, in general, the performance of international firms is dependent on the surrounding institutional conditions and on their ability to adapt to different locations (e.g. Christmann et al. 1999; Makino et al. 2004; Chan et al. 2008). In this chapter, I discuss the institutional heterogeneity of Europe as a market area by building on complementary streams of literature on the subject. In so doing, I shall specify a related set of challenges for firms’ international activity in Europe.

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.