The Role of Institutional Distance in Nordic-Baltic Strategic Alliances

Abstract: As it appears that the Nordic and Baltic countries share both similarities and differences in institutional environments, the potential role of it on cross-border cooperation is ambiguous. The aim of this study was to investigate the role of the distance in Nordic-Baltic strategic alliances. This study has revealed that formal national and supranational institutions affect the national business environment, influencing the formation and operation of cross-border strategic alliances. Furthermore, cultural similarities and awareness are seen as mitigating factors of challenges in cross-border cooperation. Additionally, the findings exemplify the potential benefits of the informal institutional distance, the role of labour unions, and industry-specific legislation on international strategic alliances in the Nordic-Baltic context.