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Explaining the variation in the Europeanization of business: an institutionalist theory

ABSTRACT Although the European Union (EU) provides valuable political opportunities for business, firms act at the European level in different degrees and in different ways. This variation in the Europeanization of business has so far been partially overlooked by the literature. In this work I propose an institutionalist theory of the Europeanization of business by focusing on how national political institutions mediate the impact of the institutional structure of the EU on business behaviour. Findings from a large-N analysis across several countries demonstrate that firms in decentralized countries tend to be more active at the EU level. National political institutions affect also how firms act at the EU level. Indeed, those firms that act individually at the national level tend to act collectively at the EU level. This work aims at a more nuanced institutionalist account of Europeanization, by bridging the gap between the traditional literature on comparative politics and the one on European interest representation.