Most observers expect Europe 1992 to enhance the performance ofEuropean businesses as they expand from a national to a continentalscope. But there is little direct evidence to date of the potential gainin profitability at the business level. Using the PIMS Program databaseof 89 European continental businesses and 253 European singlecountrybusinesses, this study attempts to provide evidence in this direction.The author finds that, in contrast to North America, Europeancontinental businesses were much less profitable than nationalbusinesses over the period 19721987. This performance gap indicates thepotential gain from the unified European market. This article examinesthe evidence and suggests some of the possible causes.
International Marketing Review – Emerald Publishing
Published: Feb 1, 1991