The international strategic alliances between european firms and the firms of Mediterranean partner countries. (conceptual paper)

• Author: Roberto Aguiari
• Pages: 119-137

119

ROBERTO AGUIARI

THE INTERNATIONAL STRATEGIC ALLIANCES BETWEEN

EUROPEAN FIRMS AND THE FIRMS OF MEDITERRANEAN

PARTNER COUNTRIES. (CONCEPTUAL PAPER)

PURPOSE

The main aim of this paper is to present the result of the developing research on the trend

of co-operations between European firms and fir ms of Mediterranean Partner Countries

(Algeria Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territories, Syria,

Tunisia, Turkey), from 2004 to 2008. The firms form alliances, as international strategy, if

the environment and rules support their cooperation. When the economy of the country of

partner is not stable, firms prefer equity alliances. The assumption is that the market

integration process increases the collaborations between the firms of involved countries. The

trend of flows of direct investment, in which the international strategic alliances are

accounted, supports the assumption. The research question is: ‘Is the Barcellona ( 1995)

process increasing the formation of international strategic alliances between Euro pean

firms and firms of Mediterranean Partner Countries?’.

DESIGN/METH ODOLOGY/APPROACH

The research is an exploratory study, which analyzes data of the annual reports of the

observatory of European Commission (MIPO) of the agency (ANIMA) created by

European Commission to support the cooperation between countries. The data-set is the

collection of equity international strategic alliances between European firms and firms of

Mediterranean Partner Countries, through manual cross checks of the list of flows of direct

investment in Mediterranean Partner Countries, from 2004 to 2008. The statistical analysis is

descriptive and it is composed by a comparison of the equity international strategic alliances

(EISA) with the risk rank of countries, and by the breakdown of trends of EISAs in every

MPC with the year of agreements and the value of funds rece ived by European Commission.

FINDINGS

The statistical analyses show that EISA from European countries in MPCs are not

influenced in a strong way by the risk of the MPCs. In Turkey, Morocco, Tunisia and

Israel the EISAs are increasing. Further evidence is still to be obtained in the next

steps of analysis.

RESEARCH LIMITATIONS/IMPLICATIONS

The implications of results of this study suggest topics of research that should be more

inquired in literature. The entrepreneurs will be informed on the characteristics of i nvestments

in Euro Mediterranean area, thus they will take choices in the future on their business.

ORIGINALITY/VALUE

This pa per contributes to develop and to understand the trends and changes of dialogue

between European and Mediterranean firms in Barcellona (1995) process. The institutions

will look at the work to understand the effects of their actions on enterprises and which

area they have to reinforce. The entrepreneurs and management involved in an

internationalization process valuating the opportunity of forming EISA.

KEYWORDS (N. 6)

Equity alliances, international strategies, Euro-Medit erranean cooperation, internationalization

process, European firms.

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Introduction

In 1995, the Barcelona Euro-Mediterranean Ministerial Conference

established an Euro-Mediterranean partnership in order to turn the

Mediterranean into a common area of peace, stability and prosperity

through the reinforcement of political dialogue and security, an economic

and financial partnership and a social, cultural and human partnership.

The aims of Economic and financial partnership are: a sustainable

and balanced socio-economic development and an improvement of the

living conditions of the populations, an increase in the employment level

and the encouragement of regional cooperation and integration. The ways

chosen to achieve the aims are:

– the progressive establishment of a free trade area between the EU

countries and Mediterranean partner countries (MPCs);

– the implementation of appropriate economic cooperation and

concerted action in the relevant areas;

– a substantial increase in the European Union’s financial assistance to

its partners.

The Euro-Mediterranean industrial cooperation needed a specific policy

on firms, so in 2004, the industry ministers of MCPs adopted the Euro-

Mediterranean Chart of Enterprise. The policy dimensions1 of the Charter are

the areas of private sector that have to be improved to accelerate the

cooperation between the enterprises of MPCs and Europe.

The main aim of this paper is to present the result of a conceptual

analysis of a research, financed by Italian Minister of University and

Research2, on the trend of co-operations between European firms and

firms of Mediterranean Partner Countries (Algeria Egypt, Israel, Jordan,

Lebanon, Morocco, Palestinian Authorities, Syria, Tunisia, Turkey), from

2004 to 2008. The enterprises follow alliances, as international strategy,

if the environment and rules support their cooperation. When the

economy of the country of partner is turbulent, firms prefer equity

alliances. The assumption is that the market integration process increases

the collaborations between the firms of involved countries. The trend of

flows of direct in vestmen t, in whi ch the international strategic alliances are

accounted, supports the assumption. Investments from European countries in

1 The ten areas of the Charter 2004 are: 1. Simple procedures for enterprises, 2.

Education and training for entrepreneurship, 3. Improved skills, Easier access to finance

and investment-friendly taxation, 5. Better market access, 6. Innovative firms, 7. Strong

business associations, 8. Quality business support schemes and services, 9. Strengthening

Euro-Mediterranean networks and partnerships, 10. Clear and targeted information for

enterprises.

2 PRIN 2007, the project is developed jointly with other Italian Universities and the

title is “Religioni, democrazia economica e cooperazione nello spazio euro mediterraneo.

Partenariato e “buone prassi”.