New Policy Challenges for European Multinationals: A Resource Bundling Perspective

Over the past few decades, European multinational enterprises (MNEs) have been faced with a rapidly changing and difficult-to-predict international policy environment. Waves of privatisation, liberalisation and deregulation have alternated with periods of re regulation and institutional volatility. The proclaimed era of ‘globalisation’ turned out to be more regional than many of its protagonists anticipated ( Rugman & Verbeke, 2004 ). Nevertheless, the ‘home advantage’ of many companies has come under increased pressure, and even their relationships with traditionally supportive, non-market domestic stakeholders such as governments, trade-unions and other non-governmental organisations (NGOs) have been affected. In addition, the ‘host advantage’ sought by European MNEs in many developing countries has also become increasingly challenged, especially by new generations of emerging market MNEs. Part of the explanation for the success of these new entrants has been their privileged relationships with non-market actors in their domestic policy environment. Five international policy changes have accompanied these developments (Fig. 1).