Italian Manufacturing Research Articles

Spatial agglomeration, innovation and firm survival for Italian manufacturing firms

ABSTRACT The innovativeness of a firm not only improves its own survival chances but also can generate externalities on its neighbouring firms. We empirically examine the role of agglomeration economies in how innovativeness affects firm survival in southern Italy, using spatial weights to model spillovers. Spatial Durbin probit model estimates confirm that innovation is an important determinant of firm survival, not only for firms that are themselves innovative but also for those located close to other innovative firms. Adequate definitions of spatial scale and spatial weights are important. Spillover benefits are enhanced by agglomeration economies, but only at a very local scale.

Leverage the COBIT 2019 Design Toolkit in an SME Context: A Multiple Case Study

Organizations today exploit IT to achieve business value and competitive advantages; it is the disruptive effect of digital transformation. However, investing in IT without proper control and governance over enterprise IT (GEIT) can expose organizations to cyber-risks and IT project failures. This problem affects both multinationals and small organizations. In particular, small and medium-sized enterprises (SMEs) struggle to implement IT-governance also due to the complexity of the standard IT-governance frameworks. In this study, five case studies were conducted with five manufacturing companies in Italy whose headquarters are located in the Lombardy region to investigate the potential benefits for IT practitioners of using the COBIT 2019 Design Toolkit, an Excel spreadsheet that facilitates the development of a governance system. The results are encouraging, the IT practitioners appreciated the COBIT 2019 Design Toolkit to map the IT resources and issues, prioritize the most important governance and management objectives, and align business and IT strategy. However, some criticalities emerged, for instance, the limited prescriptive power of the tool and the language, which is sometimes difficult to understand for IT practitioners. It should also be noted that current IT-governance implementation in Italian manufacturing SMEs appears to be very limited. Further, it should be highlighted that this study was using COBIT 2019 before ISACA issued “COBIT for Small and Medium Enterprises Using COBIT 2019” which could already have a positive impact on the level of comprehension.
 Keywords: COBIT 2019, IT-governance, IT-governance frameworks, multiple case study

Sutureless Technique for Surgical Castration in Adult Boars: A Feasibility Study.

The heterogeneity of Italian manufacturing processes results in the production of a large variety of pork products. In Sardinia, boars are raised and butchered to produce charcuterie. These animals are castrated before slaughter as androstenone would otherwise taint the meat, rendering it unfit for human consumption. However, to date, the literature concerning surgical orchiectomy in adult boars is limited. The goal of this study is to assess whether a sutureless swine orchiectomy procedure is feasible. Additionally, this study aims to determine the appropriate traction force needed to tie knots in the deferens duct of pigs of different weights and ages. Two groups were created: the first (n = 91) underwent orchiectomy by suture ligation; the second (n = 20) was castrated using the sutureless technique. Deferens ducts of animals in the first group (n = 182) were collected following castration, and their tensile strength was measured. Pearson's linear correlation was used to determine the relationship between the maximum traction force and weight and age groups. A correlation of 0.99 and 0.96 was shown between traction force and age and traction force and weight, respectively. In accordance with these results, sutureless castration was performed on 20 animals, calibrating the pulling force needed according to the age and weight of the boars. No complications were observed during the feasibility study, thus validating sutureless orchiectomy in adult boars.

MACROECONOMIC DYNAMICS AND THE ROLE OF MARKET POWER. THE CASE OF ITALY

In recent years, the US and other advanced countries have experienced macroeconomic dynamics which raise some concerns and which, according to the literature, are at least partly attributable to a rise in product market power. This study mainly aims to understand how Italy performs in terms of five relevant economic variables (i.e., domestic investment rate, labour share, labour force participation, wage inequality and economic dynamism), and whether firms’ markups are on the rise. The picture that emerges is mixed, and the negative performance in terms of business dynamism and wage dispersion may be ascribable to an increase in product market power. The firm-level analysis of the Italian manufacturing sector for the years 2011-2018, which complements previous empirical analysis on product market power in this country and accounts for labour market power as well, reveals an increment in the average markup which, however, is not particularly pronounced and unsettling, and which is preceded by a period of steady decline. Moreover, this trend is accompanied by a more remarkable increase in the workers’ labour market power, which helps explain the modest growth in the revenue-based labour share observed during the same period.

The impact of Industry 4.0 technologies and the soft side of TQM on organisational performance: a multiple case study analysis on manufacturing organisations

PurposeThe purpose of this study is to explore how Industry 4.0 (I40) technologies support workers' engagement in soft total quality management (TQM) practices for organisational performance.Design/methodology/approachThe authors conducted a multiple case study of six Italian manufacturing organisations that operate with I40 production and implement TQM practices. The authors concentrated on the relationship between I40 technologies and soft TQM aspects.FindingsI40 technologies provide two forms of engagement with workers. Workers can act as machine supervisors and expert assembly operators. Organisations use five soft TQM practices to involve and develop workers for TQM that vary according to automation levels. The five soft TQM practices are top management design around workers, incremental trials with I40 technologies, worker empowerment, I40 sociotechnical collaboration and individual feedback systems.Originality/valueIn the literature that focusses primarily on how I40 technologies support the hard side of TQM by creating a data-driven and automated quality management system, the authors illustrate how the workforce can be engaged in I40 with five soft TQM practices to improve organisational performance. Thus, the authors complement the theory of hard and soft TQM aspects for I40 production systems.

The Intangible Assets in the Green Transition of Firms: Empirical Insights from Italy

We empirically investigate the simultaneous relationship between the various types of intangible assets and their effects on eco-innovation adoption through a sample of Italian manufacturing firms. The results highlight a positive influence of the intangibles on the likelihood to invest in eco-innovation. We observe, when focusing on the human capital, that while investments in only employee training only directly affect eco-innovation, the investments in management training for new business models indirectly influence eco-innovations by triggering the other intangible assets (R&D and intellectual property, Organizational capital, Open innovation).

Assessing the Integrated Impact of Sustainable Innovation on Organisational Performance: An Empirical Evidence From Manufacturing Firms

Sustainable Development Goals (SDGs) have gained importance and the world is moving on a sustainability trajectory, which requires organisations to balance financial, environmental, and social dimensions of management. Companies are encouraged to adopt sustainable innovations that include resource efficiency, waste reduction, energy use, responsible behavior etc., to overcome environmental issues and incorporate societal aspects. However, the types of innovations that embrace the so-called triple bottom line philosophy have been tenuously investigated in relation to organisational performance of firms. Through an empirical study, this work investigates the relationship between sustainable innovation in its three dimensions and organisational performance, including stakeholder management, human resource management and process measures, in the context of Italian manufacturing companies. The results show that a greater emphasis on sustainable innovations has a positive impact on the organisational performance and competitive advantage of firms, revealing the key role of human capital and portraying important avenues for future research.

Relief Policy and the Sustainability of COVID-19 Pandemic: Empirical Evidence from the Italian Manufacturing Industry

This work investigates the impact of COVID-19 on the Italian manufacturing industry, testing whether the recovery measures introduced by the government were effective in alleviating the economic consequences of the virus in 2020. In particular, this work aims to address the impact of COVID-19 on the Italian manufacturing industry, and evaluation of the adopted recovery measures. Considering the current situation, with the war in Ukraine and the related gas crisis across the European Union, such investigation on policy relief is even more relevant, contributing to the current debate. Adopting RE models, and considering the latest economic and financial information available, we analyzed active private limited firms in the Italian manufacturing industry between 2019 and 2020, investigating the impact of layoff on their productivity (i.e., Total Factor Productivity) and profitability (i.e., Return On Assets), as well as their expected probability of default. According to the results of these regression models, and assuming 8 weeks of layoff, we observed an increase in productivity (between 1.20% and 1.59%), a decrease in profitability (1.47%) and an increase in bankruptcy risk (2.27%). Hence, the relief policy was not able to alleviate the economic consequences of COVID-19 for these firms, even though the layoffs were able to support their productivity. Practical implications concern the necessary improvements for the above relief policy, i.e., interventions to support the demand of manufactured products, interventions to support the digitalization of services, interventions to support the remote working, and interventions to support the introduction of innovative products on the market.

Family firms, productivity and input specificity: An empirical assessment of Italian firms’ sourcing

ABSTRACT This paper provides an empirical assessment of Italian firms’ sourcing. Combining the international economics literature on global sourcing with the family business and international business literature on family firms (FFs)’ internationalization, we build a comprehensive framework in which sourcing is shaped by location (domestic versus foreign sourcing) and ownership (integration versus outsourcing) decisions. Relying on a new firm-level, cross-sectional dataset on a stratified sample of Italian manufacturing firms, we address the relationship between sourcing and various firm-level features. Our probit and multinomial probit estimates highlight family presence in ownership and control, total factor productivity and reliance on specific inputs as the main drivers of sourcing. While playing little role in shaping the ownership decision, both FF status and total factor productivity affect location choices, fostering domestic and foreign sourcing, respectively. Conversely, reliance on specific inputs is key in orienting the ownership decision, promoting integration over outsourcing. Our study contributes to the international economics literature on global sourcing by studying factors other than productivity and input specificity that affect input procurement; moreover, it contributes to the family business and international business literature on FFs’ internationalization by taking a supply-side perspective and investigating sourcing through the interplay between location and ownership choices.

Business continuity and planning effectiveness: An empirical analysis of Italian manufacturing SMEs

For decades many researchers have studied companies' crisis and insolvency forecasting based on economic and financial indexes. However, little attention has been devoted to companies' organisational structure in setting up favourable conditions in which firms can continue their activities without having to initiate an alert procedure as well as effectively achieve the objectives forecasted. This is even more important when considering the introduction of Legislative Decree N. 14/2019, which underlines the importance of implementing a structure suitable for guaranteeing a company's development. This study aims to investigate whether organisational, administrative and accounting structures affect business continuity and planning effectiveness. To this end, the study has adopted a quantitative approach. This paper provides insights into a new management control approach. SMEs should adopt a more structured management approach, driven by an effective company information system able to timely detect the emergence of a crisis and the uncertainty of business continuity.

The mediating role of knowledge management processes in the effective use of artificial intelligence in manufacturing firms

PurposeThis paper aims to provide and empirically test a conceptual model in which artificial intelligence (AI), knowledge management processes (KMPs) and supply chain resilience (SCR) are simultaneously considered in terms of their reciprocal relationships and impact on manufacturing firm performance (MFP).Design/methodology/approachIn the study, six hypotheses have been developed and tested through an empirical survey administered to 120 senior executives of Italian manufacturing firms. The data analysis has been carried out via the partial least squares structural equation modelling approach, using the Advanced Analysis for Composites 2.0 variance-based software program.FindingsUsing a conceptual model validated using an empirical survey, the study sheds light on the relationships between AI, KMPs and SCR, as well as their impacts on MFP. In particular, the authors show the positive effects of the adoption of AI on KMPs, as well as the influence of KMPs on SCR and MFP. Finally, the authors demonstrate that KMPs act as a mediator through which AI affects SCR and MFP.Practical implicationsThis study highlights the critical role of KMPs for manufacturing firms that can deploy AI to stimulate KMPs and through attaining a high level of the latter might succeed in enhancing both their SCR and MFP.Originality/valueThis study demonstrates that manufacturing firms interested in properly applying AI to ameliorate their performance and resilience must carefully consider KMPs as a mediator mechanism.

Environmental regulation and green productivity growth: Evidence from Italian manufacturing industries

Environmental policy is at the core of the current research debate and policy action. Few studies have discussed the impact of environmental regulation on productivity growth at industry level, and the empirical evidence on this issue is still controversial. Based on panel data on thirteen Italian manufacturing industries from 1995 to 2017, this study analyzes the effect of environmental policies on sectoral productivity by measuring the adjusted productivity growth using the Malmquist-Luenberger index. The main result of this analysis is that environmental regulation has no negative effect in most of the sample industries. A bootstrapping approach has been used to assess the robustness of estimated results.

IT 서비스업의 글로벌 무역 네트워크 및 부가가치 무역의 특징 분석

Purpose: In order to take into account the importance of the IT services industry related to the 4th industrialrevolution and to supplement the limitations of the export/import analysis based on gross export statistics, weattempted to analyze the status and features of the value-added export network of IT services industry. Through thetrade network analysis, we suggest the necessity of policies to foster the IT service industry and provide policyrecommendations for industrial development. Research design, data, and methodology: This study uses the 2005 and 2014 World Input-Output Table (WIOT) todecompose gross exports into value-added exports according to gross exports decomposition methodology. We thenobtain the world trade matrix based on the domestic value-added statistics. By applying network analysismethodology to the world trade matrix, the characteristics and changes of the global value-added trade in IT servicesindustry were identified through centrality analysis and core-periphery analysis. In addition, this study identified thestatus of Korea and Japan’s IT services industry in the world value-added trade network. Results: The countries with the greatest influence in terms of domestic value-added exports in the IT services industryare the European Union (EU), the United States (USA), the United Kingdom (GBR), Canada (CAN), and India (IND). Incontrast to the IT manufacturing industry, where Korea, Japan, and China were among the core countries, Korea,Japan, and China were not among the core countries and remain as peripheral countries in the IT services industry. The ratio of domestic value-added exports to gross exports in Korea’s IT services industry is lower than that of theEU, USA, Japan, and China, and the ratio of foreign value-added exports to gross exports is higher than that of theUSA, Japan, and China. This fact can be seen as a structure in which Korea’s IT services firms import and inputintermediate goods from abroad and then export the processed final goods to the global market. Implications: Since the early 2,000s, Korea’s IT industry’s production and exports have grown significantly in volume, and its influence has been greatly strengthened in the global IT market. However, the strengthening of Korea’s influence on the global trade in the IT industry is mainly due to the growth of IT manufacturing industry, and the competitiveness imbalance between IT manufacturing and IT services industry is very severe. Therefore, it is necessary to take measures to strengthen the competitiveness of Korea’s IT services industry. First, it is necessary to overcome the foreign value-added import - processing production structure and strengthen value-added production capacity by investing in the improvement of human capital and technology in the IT services and software fields. Second, it is necessary to promote the globalization of firms through export support measures for the IT services industry. In fact, while major Korean firms have IT services affiliates, the sales of these affiliates are stable, and there is no incentive for overseas expansion. Export incentives for IT services firms should be developed to stimulate their overseas expansion.

Linking external collaborations, eco-innovation and sustainable growth. An empirical analysis on the Italian manufacturing firms

ABSTRACT This paper analyses the relationships between eco-innovation and business performance by exploring the role of external collaborations as a potential factor explaining the persisting heterogeneity of economic effects of eco-innovation. Basing on a large survey of 3,000 Italian manufacturing firms, the study investigates to what extent collaborations with supply chain and quadruple helix actors, including public institutions, universities and civil society, contribute in sustaining firm’s growth by improving the effectiveness of different types of eco-innovations. We find that the relationship between eco-innovation and business performance is moderated by both supply-chain and quadruple helix collaborations. However, external collaborations with actors of the quadruple helix show a pronounced heterogeneity. While process eco-innovation may in particular benefit from establishing collaborations with public institutions, product eco-innovation relies more on interactions with civil society suggesting that market-driven factors still exert a main role in influencing the market success of this type of eco-innovation.

Enhancing the strategic alignment between environmental drivers of sustainability and the performance management system in Italian manufacturing firms

PurposeThe purpose of this paper is to provide managers with suitable strategic KPIs in decision-making processes, which aim to integrate the environmental dimension of sustainability at a business level in manufacturing organisations.Design/methodology/approachIn view of the research proposal addressed, semi-structured interviews were conducted, based on theoretical milestones of the performance management system (PMS), with 48 managers that work in Italian manufacturing firms and specialise in green practices.FindingsThe authors developed a novel environmentally performed framework to adequately integrate environmental value drivers at a strategic level.Practical implicationsThe resulting issues addressed in this paper, and their integration in the business strategy for managing environmental complexity, allows contributing, firstly, to the existing literature by suggesting the relevant key value drivers that need to be mostly studied from an accounting point of view. In addition, from these results, though their experience managers will have up-to-date key measures that could, in the future, help the integration process between the environmental aspect of the sustainability dimension and the PMS.Originality/valueThe results generate a robust roadmap for future analysis in this research field. Accordingly, the paper engenders a strategic alignment in the green transition process, providing scholars and practitioners with a clear view of the key sustainable drivers, metrics and potential solutions that have not been addressed to date.

Industry 4.0 and intelligent predictive maintenance: a survey about the advantages and constraints in the Italian context

PurposeIn the context of the Industry 4.0, this paper aims to investigate the state of the art of Italian manufacturing, focusing the attention on the implementation of intelligent predictive maintenance (IPdM) and 4.0 key enabling technologies (KETs), analyzing advantages and limitations encountered by companies.Design/methodology/approachA survey has been developed by the University of Parma in cooperation with the Italian Workers' Compensation Authority (INAIL) and was submitted to a sample of Italian companies. Overall, 70 answers were collected and analyzed.FindingsResults show that the 54% of companies implemented smart technologies, increasing quality and safety, reducing the operating costs and sometimes improving the process' sustainability. However, IPdM was implemented only by the 37% of respondents: thanks to big data collection and analytics, Internet of Things, machine learning and collaborative robots, they reduced downtime and maintenance costs. These changes were implemented mainly by large companies, located in northern Italy. To spread the use of IPdM in Italian manufacturing, the high initial investment, lack of skilled labor and difficulties in the integration of new digital technologies with the existing infrastructure are the main obstacles to overcome.Originality/valueThe article gives an overview on the current state of the art of 4.0 technologies implementation in Italy: it is useful not only for companies that want to discover the implementations' advantages but also for institutions or research centres that could help them to solve the encountered obstacles.

Product and labour market imperfections in the Italian manufacturing sector: a firm-level analysis

Product and labour market imperfections in the Italian manufacturing sector: a firm-level analysis

ANALYSIS OF THE PROSPECTIVE USE OF SAN MARKO INTERIOR DECORATIVE MATERIALS

SAN MARKO decorative materials appeared on the domestic market relatively recently. The Italian brand of decorative materials is represented by a variety of paint and varnish products for interior solutions. It is difficult for the modern consumer to understand the choice of SAN MARKO decorative materials, as there is not enough information regarding the specifics of the use of these products. SAN MARKO decorative materials offer unique innovative solutions with high-quality characteristics, focused on each individual client, following current market trends in the field of interior and design. With the help of SAN MARKO decorative materials, you can create interior styles, exquisite decors, thereby not neglecting any of the client’s wishes. The products of the Italian brand are not just the widest color palette, they represent unlimited possibilities for creative ideas. Decorative coatings and effects created by these materials fascinate with their originality and rich artistic content. The secret of the success of the SAN MARKO line of decorative materials lies in the fact that they offer not only unique, radically new solutions, but also maintain high quality characteristics, as well as the fact that each customer with completely different requests in terms of aesthetics and technology will find something for himself optimal material for creating an interior. The Italian art of interior design conquered the international market, became a model of sophistication and taste, which is perceived as a globally recognized example of style. SAN MARKO decorative materials carry an important mission – they pass on to today’s generation a rich heritage in which unsurpassed Italian craftsmanship techniques reproduce the age-old traditions of the southern people, updated with the help of modern materials and techniques. SAN MARKO decorative materials are presented in a wide range of species and a rich palette of colors. This is a great modern tool for those who value creativity, sophistication, and quality. Creating a unique decor using materials from an Italian manufacturer is not just work, but the creativity of designers, master interior decorators and other professionals working with paint and varnish materials.

Servitized Customer Segmentation Model for SMEs

The study's purpose is to develop and test a service-oriented customer segmentation model for manufacturing small and medium enterprises' (SMEs) business development. By acknowledging SMEs' lack of resources, the model aims to help companies establish strategies and organizational arrangements to overcome servitization's strategic and operational barriers. The model was initially developed based on the recency, frequency, and monetary (RFM) model. The RFM model was adapted to include installed base and different services delivered by manufacturers. The model helps manufacturers to focus on profitable after-sales customers to ensure long-term revenues by associating a specific service strategy to each cluster identified and developing offerings that fulfill specific customer needs. The authors collected data about 296 customers of an Italian manufacturing SME during 2019-2021 to offer the first validation and train of the tool developed according to the proposed framework.

Data-Driven Decision Making in Maintenance Service Delivery Process: A Case Study

Data availability is changing the way companies make decisions at various levels (e.g., strategical and operational). Researchers and practitioners are exploring how product–service system (PSS) providers can benefit from data availability and usage, especially when it comes to making decisions related to service delivery. One of the services that are expected to benefit most from data availability is maintenance. Through the analysis of the asset health status, service providers can make informed and timely decisions to prevent failures. Despite this, the offering of data-based maintenance service is not trivial, and requires providers to structure themselves to collect, analyze and use historical and real-time data properly (e.g., introducing suitable information flows, methods and competencies). The paper aims to investigate how a manufacturing company can re-engineer its maintenance service delivery process in a data-driven fashion. Thus, the paper presents a case study where, based on the Dual-perspective, Data-based, Decision-making process for Maintenance service delivery (D3M), an Italian manufacturing company reengineered its maintenance service delivery process in a data-driven fashion. The case study highlights the benefits and barriers coming with this transformation and aims at helping manufacturing companies in understanding how to address it.