Italian Manufacturing Industry Research Articles

Collaborations for Circular Food Waste Management in Italian Fish Manufacturing Firms: a Resource Dependence Perspective

This paper aims to shed light on supply chain collaborations in circular economy for food waste prevention and management. The exploratory study adopts a multiple case study research design on a sample of two polar cases: a small enterprise and a large company in the Italian manufacturing industry of fishery products. Resource Dependence Theory (RDT) allows for an understanding of the mechanisms of circular supply chains, describing strategic motivators of collaborations for circular economy, and overall provides a novel perspective on food waste prevention and management. This study highlights how companies develop in-house solutions when the food waste streams are moderate but rely on collaborations when the streams are conspicuous, thus, the need to implement circular economy solutions fosters collaborations. The findings provide a novel perspective on collaborations in circular economy; furthermore, RDT offers a novel conceptualization of food waste management practices, highlighting the suitability of further applying RDT to this field of study.

Financial constraints prediction to lead socio-economic development: An application of neural networks to the Italian market

This study applies a neural network framework to optimize the classification of firms and to predict their difficulties in collecting external financial resources in the short term. In detail, we adopt replicated bootstrapped algorithms optimized on sensitivity and specificity as error measures and we propose a comparative analysis to identify the best-performing one. According to our results, the Conjugate gradient backpropagation with Fletcher-Reeves updates (i.e., CGF) is the best-performing algorithm, with sensitivity equal to 74.41 % and specificity equal to 70.11 %. Then, we use this algorithm and its weights to provide a classification of the Italian manufacturing industry in 2019, identifying the geographical areas in which firms under financial constraints are located, as well as the most critical industrial sectors. Based on this evidence, and considering the implementation of a cohesion policy, we highlight interventions by policy makers to support firms’ access to the capital market, fostering their investments and the consequent socio-economic development.

Internationalization and financial constraints: Opportunities, obstacles, and strategies

This study delves into the relationship between financial constraints and internationalization, investigating the role and extent of variability in access to the capital market in shaping internationalization strategic choices. In detail, focusing on the Italian manufacturing industry between 2013 and 2019, we examine this relation disentangling the effect between export and import dynamics. Initially, we run various OLS regression models to investigate the profile of exporting/importing firms, providing a preliminary picture of the internationalization process of the Italian manufacturing industry. Then, we run several GMM regression models to highlight these dynamics over time and to collect robust evidence for our hypotheses. According to the results, we observe that firms under high financial constraints have the lowest intensity of import and export flows (i), firms under moderate financial constraints have the highest intensity of export flows (ii), and firms under low financial constraints have the highest intensity of import flows (iii). An interpretation of these results concerns the heterogeneity of business-to-business payment dynamics across the EU global value chain, with the Italian market characterized by the longest delay. Hence, internationalization through export flows represents an opportunity for those companies with the most aggressive business strategies, quickly raising their internal liquidity, and complementing local financial debts with international trade credits. On the other hand, only firms with no restrictions to the capital market can afford prompt payments of foreign suppliers, easily collecting the necessary liquidity to support import flows.

Pandemic crisis and firm survival: evidence from the Italian manufacturing industry

Pandemic crisis and firm survival: evidence from the Italian manufacturing industry

Counterfeiting and firm survival. Evidence from the Italian manufacturing industry

Using a dataset obtained by matching and merging three major databases, this paper investigates the impact of counterfeiting on firm survival in a sample of Italian manufacturing firms established between 2004–2006. This paper contributes to the literature on firm survival, which has identified firm-level characteristics, macroeconomic conditions and institutional features as key contributing factors to growth and survival probability among firms. The topic is hugely significant since this illegal competition may displace and damage the firms that produce genuine products. Overall, our analysis finds that the presence of counterfeit products negatively affects the chances of firms surviving. Moreover, after performing an in-depth analysis, we find that the presence of counterfeit products affects firms operating in lower tech sectors and smaller in size. Our evidence, which is robust to an alternative measure of counterfeiting and different estimation methods, provides room for policy interventions.

Generating modern heritage through changing urban environments and identities: A case study from Prato's (Italy) industrial district, history, and multiculturalism in a polycentric urban setting

AbstractFollowing economic crises, the evolution of industrial districts (IDs) has frequently caused the crisis within entire urban systems. Being IDs based on individual will and competences, rather than on big industries, their failure can compromise the city's identity. The Italian manufacturing industry consistently relied on this process, and this paper analyzes the case study of Prato, a medieval core city in central Italy that, since the mid‐twentieth century, developed a world‐class textile district based on a polycentric production structure and widespread family entrepreneurialism. During the global economic crisis of the early 2000s, production almost stalled, leaving the city without the core of a collective identity, but with a legacy of empty spaces. Significant foreign migration, in particular from China, filled these spaces, consolidating the clothing sector. The study investigated the city's contemporary identities resulting from the rapid change in people, activities, and spaces.

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.

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.

Financial constraints, investments, and environmental strategies: An empirical analysis of judicial barriers

AbstractThis work analyzes the relation between the judicial system and financial constraints, investigating whether inefficiency in enforcing credit rights can amplify companies' difficulties in collecting resources on the capital market, limiting their access to the funds needed to support investments and environmental sustainability. Considering the Italian manufacturing industry and according to the selected insolvency procedures, our results suggest that, if the time necessary to settle cases decreases by 20%, we can expect an increase in the financial debt ratio between 0.92% and 5.08% and a decrease in the trade credit ratio between 0.81% and 2.71%, as well as an increase in investments between 0.46% and 3.22%. These results are robust under a variety of tests and support the hypothesis that judicial inefficiency represents a barrier to environmental sustainability, preventing investments in key technologies able to support green strategies, as well as the key role of trade dynamics as alternative funding strategy for their business. The economic implications of our evidence could be far‐reaching for the whole economy, not only reducing the competitiveness and financial stability of the national system but also triggering a cascade effect on the market and undermining environmental strategies.

The road towards industry 4.0: a comparative study of the state-of-the-art in the Italian manufacturing industry

PurposeThis paper has two objectives: first, to investigate the state-of-the-art of Industry 4.0 (I4.0) adoption in Italian manufacturing firms and, second, to understand variations in technologies implemented and business functions involved, benefits perceived, and obstacles encountered in I4.0 implementation over a three-year period.Design/methodology/approachThe approach adopted in this research is descriptive, nesting longitudinal features. The paper presents a descriptive survey of 102 Italian manufacturing companies. The authors also evaluated non-response biases. The longitudinal approach was achieved by comparing the responses of the 40 sub-samples in common with a second similar survey launched three years prior, which aimed to identify patterns of evolution in the adoption of the I4.0 paradigm.FindingsSurvey findings demonstrate that Italian manufacturing companies still have limited awareness of I4.0 technologies, and the adoption of I4.0 technologies differs per technology. Company size and information system coverage level are the two factors that impact the company's technology adoption level. The comparative study shows that knowledge and adoption increase in a three-year interval with an unbalanced involvement of business functions regarding the I4.0 transformation. Indeed, companies are still seeking I4.0 solutions to reduce costs and lead times primarily, and the benefits perceived by companies are shown to be related to the number of I4.0 technologies in use. Finally, when companies put the I4.0 technologies into practice, competence is constantly considered the most significant barrier.Research limitations/implicationsThis paper aims at conducting a thorough investigation into the development of I4.0 adoption in manufacturing companies. The main limitation of this study concerns the limited number of subjects involved in the longitudinal study (40) and the focus on a limited geographical area (Italy). In addition, more I4.0 technologies could also be incorporated into the survey protocol to gain further insight into I4.0 development.Originality/valueThe authors provide one of the first attempts to assess the variations of I4.0 implementation concerning technology adoption, business function involvement, and the alteration of benefits and obstacles. Several studies presented in the literature highlight the lack of longitudinal studies investigating the development of the I4.0 paradigm in a specific manufacturing context: this paper is the attempt at filling this gap.

Do cooperative banks matter for new business creation? Evidence on Italian manufacturing industry

AbstractThis work empirically investigates Italian cooperative banks (BCCs) as a driver of new business creation in the Italian provinces over the period 2003–12. The results show that the presence of BCCs positively and significantly affects firms’ entry rates. We also find that the impact of BCCs diffusion on birth rate tends to be stronger for high tech industries during the pre‐crisis years, whilst it appears larger for low‐tech sectors when considering the post‐crisis period. This evidence suggests that BCCs might play a relevant role in financing innovative and risky firms—though, when banks’ risk‐aversion increases, BCCs tend, unsurprisingly, to downsize the financing of riskier projects.

Channelling the Effect of Institutions on Productivity Growth. An Empirical Investigation on the Italian Manufacturing Industry

Channelling the Effect of Institutions on Productivity Growth. An Empirical Investigation on the Italian Manufacturing Industry

Does external R&D matter for family firm innovation? Evidence from the Italian manufacturing industry

This article focuses on the relationship between external R&D and firm innovation output. Using a sample of Italian manufacturing firms over the period 2007–2009, we estimate the effect of R&D collaboration with the aim to detect differences between family and non-family firms. The study shows that the R&D acquired from external sources has a positive impact on innovative sales, especially for family firms. This result holds when using either the extensive or the intensive margins of R&D collaboration, thereby suggesting that family companies have a greater capacity to translate external R&D into tangible economic benefits. We also find that family firms benefit from the diversity of R&D collaboration.

Detecting space\u2013time agglomeration processes over the Great Recession using firm-level micro-geographic data

We analyze the spatio-temporal agglomeration dynamics that occurred in the Italian manufacturing industry during the recent period of the Great Recession. To study this phenomenon, we employ three different statistical methods—namely, Ellison and Glaeser’s index of industrial geographic concentration, the spatial K-function, and the space–time K-function—, and rely on a large sample of geo-referenced, single-plant manufacturing firms observed over the period 2007–2012. First, we demonstrate that different statistical techniques can lead to (very) different results. Second, we find that most Italian manufacturing sectors experienced spatial dispersion processes during the period of the Great Recession. Finally, we show that space–time dispersion processes occurred at small spatial distances and short time horizon, although we do not detect statistically significant space–time interactions.

Learning from the National Manufacturing Industrial System

The recent wave of rising protectionism and re-internationalization of capital poses a significant challenge to national industrial system that structures the network and governance firms. This work aims to analyze the global commercial network of the Italian manufacturing industry under the lenses of the network analysis, describing its peculiarities and the development and internationalization paths of its international branches. The originality of the work is also that improving the ability to analyze and manage information extracted from unstructured data (stemming from notes to the firm financial statements). An adjacency matrix created on BvD-Orbis (Bureau van Dijk Electronic Publishing) flagship company database. It contains information about over 12.000 large Italian companies and belonging to one or more of 17.000 different branches in 2017. In this way it was possible to understand the evolving dynamics of the sales network of the Italian branches. The results confirm that the manufacturing industry represents a significant challenge for the design of industrial policy for the national industrial system, highlighting that the structural changes in global production have aroused renewed interest in the role of this sector in promoting economic development and policy. Following this perspective, we demonstrate the relationship between the network of countries shared by Italian companies and we highlight the fundamental characteristics in the structure of intersectoral connections.

Demography and Productivity in the Italian Manufacturing Industry: Yesterday and Today

Population ageing and lack of productivity growth characterize most western countries. We focus on Italy and investigate whether the availability of a young population represents a determinant of manufacturing productivity growth. We follow a historical comparative analysis and provide evidence of the strength of this relation in the past (1861-1911) and today (1961-2011). To account for the sizeable regional heterogeneity characterizing historically the country we use data disaggregated at the provincial level. Our analysis suggests that the availability of a young population represents indeed one of the determinant of manufacturing productivity growth. The strength of the relation was higher in the past than today, but ageing is still nevertheless a factor that cannot be neglected from a policy perspective.

Industrial spatial dynamics, financial health and bankruptcy: evidence from Italian manufacturing industry

Considering the Italian manufacturing industry (more than 100,000 enterprises) and a panel of 6 years (from 2005 to 2010), we investigate the relation between the time necessary to define a bankruptcy case and the concentration of enterprises with good financial health. In particular, recalling the seminal work of Modigliani and Miller (Am Econ Rev 48(3):261–297, 1958), we test the hypothesis that the enforcement of creditors’ rights can affect managers’ strategies, and the related risks. According to results, judicial delay can affect the industrial spatial dynamics and regional development, confirming the key role of judiciary. Indeed, we identify a statistically significant relation between the time necessary to enforce creditors’ rights and the concentration of healthy enterprises for several manufacturing industrial sectors. The policy implications of this work concern the opportunity of reforming the national bankruptcy law and courts’ organization to support the national economic growth.

Erratum to: The location of the Italian manufacturing industry, 1871–1911: a sectoral analysis

Erratum to: The location of the Italian manufacturing industry, 1871–1911: a sectoral analysis

Post-crisis firm survival, business model changes, and learning: evidence from the Italian manufacturing industry

Company survival after recessions depends on the entrepreneurial ability of decision makers to react to the crisis and learn how to make the best use of chances. The aim of this paper is to shed light on the relationship between post-crisis firm survival, learning, and firm’s entrepreneurial behavior measured by business model changes. Specifically, we test if firm survival after the 2009 recession has been affected by changes in the business model occurred in the period of recovery between the two recessions (2004–08), and if these changes are the result of deliberate reactions to the 2003 recession—i.e., learning hypothesis. The analysis of 67,241 Italian manufacturing firms suggests that business model changes have affected post-crisis firm survival by lowering the probability of default. However, the adoption of these default-reducing business model changes did not result to be significantly more frequent in firms that performed poorly during the 2003 crisis, thus providing weak support to the role of entrepreneurial learning in reducing defaults.

Industrial 3D printing in Italy

This paper aims at providing a comprehensive outlook on the economic and organisational rationale of 3D printing technologies and their implications for innovation in the Italian manufacturing industry. Despite its limited impact on the industrial world, the idea of printing actual 3D objects has clearly captured the popular imagination; 3D printing is often linked to 'big changes' or to sometimes indefinite industrial revolutions in progress because it is considered that 3D printing will eventually enable 'mass customisation'. None of the most significant actual applications of AM in Italian manufacturing, however, suggests that any real 'manufacturing revolution' has started or can be foreseen in the near future for consumer goods. For these AM is neither competitive today, nor can it be made so in the future, unless some sort of technological quantum leap occurs.