The behaviour of international firms in socio-political environments in the European Union

Abstract

Most of the earlier studies on international business ignore the influence of the political actors and the environment on the internationalisation of the firm. The focus of this study is on the interaction between business and political actors and the main question deals with how firms standing in different stages of their internationalisation manage their relationships with political actors. By using network theory. the study presents a conceptual framework and aims to augment the knowledge on the internationalisation of the firms' political activities. The variety in management actions are discussed by the two variables of influence and adaptation, which have become connected to the two fundamental variables in internationalisation of the firms, namely commitment and knowledge. By comparing the management behaviour of seven small- and medium-sized enterprises (SMEs) and three multinationals (MNEs), the study shows how smaller exporting firms vs. MNEs manage their relationships with political actors. The outcome of the analysis contains results elevating general aspects on the political behaviour of the firms in the European market. (C) 2001 Elsevier Science Inc. All rights reserved