Italian Enterprises Research Articles

Nonparametric Test for Logistic Regression with Application to Italian Enterprises’ Propensity for Innovation

In this work, a nonparametric method is proposed to jointly test the significance of the regression coefficient estimates in a logistic regression model and identify which explanatory variables are effective in predicting the binary response. The motivating example is related to the factors affecting the propensity of Italian Small Medium Enterprises (SMEs) to innovate. The explanatory variables of the model represent firms’ characteristics, such as size and age, and the possible effect of the sector of economic activity is taken into account by including a set of binary variables as control factors. The dependent variable indicates whether a company, in the period under study, introduced at least one product or process innovation. Therefore, it is also dichotomous, and the logistic regression model is appropriate for representing the relationship between explanatory variables and dependent variables. Specifically, the logit transformation of the firm’s propensity to innovate, i.e., the probability that a company randomly chosen from the population of Italian SMEs has introduced an innovation or, equivalently, the proportion of innovative companies among the Italian SMEs, is expressed as a linear function of the predictors (explanatory and control variables). The proposed test is based on the permutation approach and satisfies important statistical properties, proved in a simulation study. The test is more flexible and robust than the classic parametric approach, and is preferable to typical stepwise regression procedures for the selection of a parsimonious and effective model.

SME Instrument: an empirical analysis on the impact of the second phase on the performance of Italian enterprises

This article is part of the strand of research on evaluating the effectiveness of public funds in stimulating the growth of research and development activities in the private sector. The research focus is on the SME Instrument, in its original version born within Horizon 2020, and in particular Phase 2 of the instrument. The research question, therefore, is "Has the second phase of the SME Instrument had a positive impact on the Italian SMEs that have joined it? If yes, to what extent?" The evaluation will be based on quantitative data inherent in the innovation (and non-innovation) performance of individual firms. At the conclusion of the analysis, it can be concluded that the second phase of the SME Instrument did not produce significant additional effects on the performance of firms, approximated by the ratio of total sales to total assets. The only exception is for those enterprises aged between 6 and 15 years, for which there is a partially significant increase in the sales/assets ratio after receiving funding. Given the research results and given that public and private management share a common interest in making their investments effective and efficient by seeing a return on them, the implications for policymakers are twofold: personalization of policy and promotion of an integrated innovation model, both of which imply a rethinking of the instrument. However, like any research, the results obtained are never an end-point, but the starting point for new reflections from which to develop further research.

Semi-parametric approach for modelling overdispersed count data with application to Industry 4.0

The paper deals with a test for the goodness-of-fit of a model for count data, in the framework of Generalized Linear Models. The motivating example concerns the study on the effectiveness of policy incentives for the adoption of 4.0 technologies by Small and Medium Enterprises. According to the literature, openness to Industry 4.0 should be measured in terms of the number of 4.0 technologies adopted, represented by a count variable. To investigate the effectiveness of public policy interventions to encourage the adoption of 4.0 technologies, we propose the application of a model for count data with a permutation ANOVA to test the goodness-of-fit and for the model selection. When the distribution of the response is neither Poisson nor Negative Binomial, and in the quite common situation in which the response variance is much greater than the mean, the classic Poisson regression and Negative Binomial regression are not valid. The proposed testing method is based on the combination of permutation tests on the significance of the regression coefficient estimates. The power behaviour of the proposed semi-parametric solution is investigated through a comparative Monte Carlo simulation study. The performance of such a method is compared to those of the two main parametric competitors. The application of the permutation test to an interesting case study is presented. The dataset is original, and related to a sample survey carried out in Italy, about the adoption of Industry 4.0 technologies by Italian enterprises.

SME Instrument: An Empirical Analysis on the Impact of the Second Phase of the Instrument on the Performance of Italian Enterprises

SME Instrument: An Empirical Analysis on the Impact of the Second Phase of the Instrument on the Performance of Italian Enterprises

Surveying the landscape of Human-Centric Manufacturing in Lombardy: insights from the practices and perspectives of Italian enterprises

The ongoing technological changes raise the need for socially sustainable paths of digital innovation, putting technology at the service of humans positioned at the centre of production processes. Indeed, in digital factories, where increasingly complex and high-performance models and technologies are strongly considered, humans have been almost neglected. In that sense, Industry 5.0 recognizes worker well-being as a driver for the transition toward smart factories. However, human-centric manufacturing is still an early-stage concept, thus lacking standardized terminology and frameworks. The development of a shared understanding is also hindered by stakeholders being concerned about job displacement, costs, or uncertainty about the benefits. This article aims to bridge that gap by mapping the state-of-the-art of several Italian companies in terms of technology readiness and human friendliness, thus providing best practices and solutions to foster the technological transition required by Industry 5.0 and the development of trustworthy human-machine synergies. A specific survey questionnaire was developed to evaluate the digitalization level of companies in terms of funds destination, technology development, and integration with operators. The data gathered through the survey allowed the definition of a model that highlights a general attitude toward innovation and human centrality, even though the latter still results far from maturity.

The Determining Factors of the Delocalization of Italian Companies to East European Countries

Reflections on the factors that influence the delocalization of Italian companies to other countries, arising from a rapidly changing world economy, offer invaluable insight into companies facing similar tough choices. Usually, this decision is attributed to economic, fiscal, and institutional factors. This article examines the process of delocalization of Italian enterprises and empirically verifies the main factors which influence the delocalization of Italian enterprises to East European Countries. The results suggest that “labor market regulation”, “business regulation”, and “size of government” or better said, the labor cost the host country, is the main incentive of Italian enterprises to delocalize their production. Empirical results also show that institutional factors such as “rule of law”, “control of corruption”, “political stability”, and “broadband infrastructure” have a positive and significant correlation with the delocalization of Italian enterprises to the East European Countries. The results in this case suggest that Italian companies are looking for an environment in which the state knows how to enforce their own rules, but also a state that is somewhat “corruptible”.

The green to circular bioeconomy transition: Innovation and resilience among Italian enterprises

AbstractThe bioeconomy is an essential part of the transition from a linear to a circular production model, which repositions production systems to favour sustainability and innovation. There are two main contributors to the development of this process: the choices made by public decision‐makers (national and European), and the strategies adopted by companies and the recent increased diffusion of new business networks and clusters in Europe, which favour industrial and technological transformation processes. We move from analysis of the international context and how Italy's positioning in the new circular bioeconomy is evolving to focus on the diffusion of business clusters and networks in Europe linked to the circular bioeconomy to propose a preliminary empirical study of corporate behaviour. For this we use survey data on Italian bio‐industries that are part of the cluster SPRING (Sustainable Processes and Resources for Innovation and National Growth). The results show how SPRING cluster firms are pushed to improve their positioning in numerous fields characterizing the most innovative business models.

The Italian quick survey on the effects of the COVID‐19 health emergency on businesses: Sampling strategy and data editing

AbstractDuring the first phase of the COVID‐19 pandemic, Istat performed the quick survey “Situation and perspectives of Italian enterprises during the COVID‐19 health emergency,” with the aim of assessing the economic situation and the specific actions adopted by businesses to reduce the economic impacts of the emergency. To ensure the continuity in the information flow and to analyze the temporal evolution of the observed phenomena, the survey has been repeated in three different waves. The outcomes of each wave was released just after 2 months from the launch of the survey. The present work analyses the characteristics of the sampling strategy and describes the complexity of the data editing process, in the case of a survey planned to produce estimates able to ensure an acceptable level of accuracy in the maximum timeliness.

The Evolution of Energy Management Maturity in Organizations Subject to Mandatory Energy Audits: Findings from Italy

Promoting energy efficiency is a key element of the strategic commitment of the European Community. Prominent among the binding measures established by the 2012 Energy Efficiency Directive to further this vision is the requirement for large companies to conduct energy audits every four years. After receiving the second cycle of energy audit reports in December 2019, a new description of the energy situation of Italian companies was made available. This presented the previously inaccessible possibility of comparing the two situations reported in 2015 and 2019 to assess the development of energy efficiency practices in organizations subject to the legislative obligation of energy audits in the country. To this end, in collaboration with the Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA), a project was initiated with the aim of developing the tools and methodologies necessary to assess in more detail the evolution that has occurred in the four years since 2015. In this paper, the findings of the analysis conducted on a significant sample of companies in Italy are presented. Through the design of a maturity model to assess the degree of progress achieved in a company’s energy management, the results of the two situations were analyzed. The analysis was deepened by assessing the progress achieved in different aspects of Energy Management: “Strategic Approach”, “Awareness, Competence, and Knowledge”, “Methodological Approach”, “Organizational Structure”, “Energy Performance Management and Information System”, and “Best Practices”. Furthermore, the observed variations were statistically tested using a pairwise t-test to make statistical inferences about the maturity of the total population of Italian enterprises under legislative obligation. The results have shown an increase in overall energy management maturity in each maturity dimension.

Firms’ solidity before an exogenous shock: Covid-19 pandemic in Italy

In this paper we study the structural robustness of the Italian business system, using the Covid-19 pandemic as an exogenous event to test it. To this aim, we use the ROC (Receiver Operating Characteristics) methodology, quite new for economics, to classify Italian firms according to their economic solidity, obtaining a taxonomy based on a wide set of characteristics. Our results show that the number of “Solid” firms is less than one-fifth of all Italian enterprises but they represent the lion’s share in terms of employment and value added. “Fragile” and “At Risk” firms, albeit much less relevant for the creation of value added, account for over one-third of total employment, so they may be a worrisome issue for policymakers. Solidity conditions have clearly both a size and sector-related dimension: At Risk and Fragile conditions prevail among firms of smaller economic size (a broad definition of firm size) and among those operating in Construction and Other services. Finally, we find that factors such as firms’ performance, and internal and external organization, although significant, play a less relevant role than economic size and digitalization/innovation in determining Italian firms’ resilience to exogenous shocks such as the Covid-19 one.

Environmental networks and employment creation: Evidence from Italy

The main object of this paper is to investigate the impact of environment-related networks (or eco-networks), which we interpret as a type of open eco-innovation, on employment. We exploit information from an original dataset which reveals collaboration among Italian enterprises that have signed business network agreements (BNAs), a policy instrument that was first introduced in 2009, and started in 2010, to strengthen the innovation and competitiveness of Italian firms. The results of the empirical analysis suggest that the intensity in the use of networks positively affects employment and that the marginal impact of increasing the intensity of BNAs in eco-networks on employment is larger than in other network. This is partly due to the fact that eco-networks rely more often on market strategies which are linked to product innovation. Finally, the sectoral heterogeneity of networks seems to be beneficial for employment creation, with a larger marginal effect for eco-networks than other networks. These results suggest that two important goals, environmental sustainability and employment creation, can be reconciled by means of flexible policy instruments that encourage open innovation and the sharing of knowledge and resources among firms.

Reacting to the economic fallout of the COVID-19: Evidence on debt exposure and asset management of Italian firms

The COVID-19 pandemic provides a once-in-a-lifetime opportunity to learn more about how businesses are affected by and adapt to large-scale, unforeseen shocks. Our research examines the worries of a sample of Italian publicly traded companies about the spread of COVID-19. The information was gathered from a dataset employing text-based estimates of the main concerns listed companies have about the development of COVID-19 and other pandemic diseases. These data can be used to determine whether companies stand to earn or lose money because of a particular outbreak. We concentrate on the data for Italy, which allows us to quantify which of the sample’s Italian enterprises are more exposed and thus affected, the severity of risk perception, and the firm’s attitude towards​ the shock exposure. We attempt to explain how firm perceptions of the COVID-19 crisis are correlated with various types of indicators related to economic and financial status, such as financial position (total debt exposure and short-term exposure), ROI, and ROE during the COVID-19 crisis, i.e. the main firms’ responses to such a large shock.

Bridging theory and practice in the humane entrepreneurship domain: insights from small and medium Italian enterprises

PurposeHumane entrepreneurship (HumEnt) has been theoretically proposed as a new model of entrepreneurship supporting the idea of an enlarged entrepreneurial strategic posture. The aim of paper is to frame humane entrepreneurial orientation’s (HEO) characteristics by showing how firms apply the HumEnt approach, and to offer suggestions to build an HEO measurement scale.Design/methodology/approachThe study adopts a case study approach, focusing on five Italian small and medium enterprises (SMEs).FindingsThe study (1) identifies which are the characteristics of HEO strategic posture in the enterprises under examination; (2) shows that entrepreneurs' personal values and credos are fundamental to having an HEO strategic posture adopted; (3) provides indications on the development of a measurement scale through a discussion of emerging HEO themes.Originality/valueThe value of the study is that emerging themes of HEO strategic posture was derived from the analysis of five Italian SMEs. Entrepreneur's personal values have been proven to be relevant in the implementation of HEO. Based on the emerging HEO themes, the study contributes to the literature opening the way toward the building of an all-encompassing HEO measurement scale.

How to preserve healthy aging through nutritional strategies: The new approach of the Food Social Network (Food NET) project

BACKGROUND: Aging is a process that does not refer only to the accumulation of damage in a human being over time but rather to individual changes determined by genetic, lifestyle, social and environmental factors. Aging is one of the greatest known risk factors for most human diseases. An older person in good health has a good level of independence, weighs less on the national health system and plays a productive and active role in his/her community; thus, the concept of “healthy aging”, reflecting older adult-environment fit should be promoted. The interactions between lifestyle, including nutrition, and health play a fundamental role in the aging process; eating habits and eating behaviours are recognized as important modifiable factors potentially leading to a healthy “phenotype”. OBJECTIVE AND METHODS: A multidisciplinary consortium with three Italian universities (the University of Milano-Bicocca, University of Pavia and University of Calabria) and Italian Small-Medium Enterprises proposed the Food Social Network (Food NET) project. Food NET overall outcome is to achieve target-specific guidelines and exact technologies for accessible functional foods, aimed at improving the quality of life and nutritional status of citizens (aged>65) of the Metropolitan City of Milan (Italy). CONCLUSIONS: This project is part of the “Smart Living” and food-related strategies aimed at responding to the needs of this target population, developing new food products, appropriate to meet the specific requirements and ensuring and promoting sustainable diets for healthy aging by effective food policy approaches.

The economic and institutional determinants in the international delocalisation of Italian companies

The latest trend of companies is that of fragmenting their production across several countries as a cost-saving policy. The selection of an optimal location for the fragmentation of the production depends on the economic, fiscal and institutional factors. This paper examines the main factors that influence the process of delocalisation of Italian companies in the Balkans. The results suggest that the work cost and productivity of the hosting country encourage the Italian enterprises to fragment their production in the given country. The empirical results of this study also suggest that institutional factors such as rule of law and corruption have a positive and significant correlation in the delocalisation. Finally, this study empirically examines the impact of fiscal factors. The results suggest that Italian companies are not influenced by the fiscal pressure of the host country.

The economic and institutional determinants in the international delocalisation of Italian companies

The latest trend of companies is that of fragmenting their production across several countries as a cost-saving policy. The selection of an optimal location for the fragmentation of the production depends on the economic, fiscal and institutional factors. This paper examines the main factors that influence the process of delocalisation of Italian companies in the Balkans. The results suggest that the work cost and productivity of the hosting country encourage the Italian enterprises to fragment their production in the given country. The empirical results of this study also suggest that institutional factors such as rule of law and corruption have a positive and significant correlation in the delocalisation. Finally, this study empirically examines the impact of fiscal factors. The results suggest that Italian companies are not influenced by the fiscal pressure of the host country.

Impact of COVID-19 pandemic on enterprises in Italy

The Covid-19 pandemic and the measures that have been adopted to try and contain it have had a deep impact on the Italian economy, the scope of which cannot be perfectly gauged as yet. The consequences of Covid-19 crisis have affected Italian enterprises’ operating in different sectors. Most of enterprises have been obliged to change their technical ways. Thus, new specific trends and actions have been adopted during this challenging period.

Co‐operative enterprise anti‐cyclicality and the economic crisis: A comparative analysis of employment dynamics in Italy

AbstractThe theoretical and empirical literature reports that worker co‐operatives protect employment better than investor‐owned firms (IOFs) do, especially during economic downturns. This paper introduces the new hypothesis that not only worker co‐operatives but all co‐operative types (e.g. worker, producer, consumer, credit) protect employment better than IOFs do because they all satisfy their members’ needs—instead of maximizing shareholder value—by delivering a stable stream of goods and services. A long‐standing pattern in needs satisfaction implies constant activity and employment. To substantiate our hypothesis theoretically, we resort to the evolutionary interpretation of the firm as a problem solver and to the literature on organizational resilience. We test the hypothesis using the data released by the Italian Institute of Statistics for all Italian enterprises in the 1996–2008 pre‐crisis and 2008–15 crisis periods. Dynamic multifactor partitioning confirms that in Italy, all typologies of co‐operatives withstood the crisis better than other business forms did and that co‐operatives were affected the least by economic cyclicality and employment loss.

Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises

Financial literacy, value creation and firm performance. An investigation of Italian small and medium enterprises

Italian SME Crisis and the Support Offered by Management Consulting

The effects of the EU measures and the financial crisis limited the potential growth of the Italian small medium enterprises (in term of loss of productivity, increase of unemployment rate, and decrease of customers purchase power). Together with these two factors, the Italian economic system competitiveness (whose backbone is represented by the SMEs) was negatively affected by the “digital disruption.” The purpose of this article is to critically analyse the main causes of this competitiveness loss for Italian SMEs and the role of strategy consultants in helping them to improve their results and their presence in local and international markets. Leveraging on their past industry/service line experience and massive investment in digital transformation (e.g., acquisitions of IT companies, alliances, specialization in software/tools, and internal reorganization), strategy consultants are able to assess, suggest, and implement their clients' digital strategy.