Italian SMEs Research Articles

What “V” of the big data influence SMEs' open innovation breadth and depth? An empirical analysis

The open innovation (OI) paradigm has garnered relevant attention in recent years. Against this backdrop, this study explores the impact of a relatively recent phenomenon, such as Big Data, in terms of Volume, Velocity, and Variety, on small and medium enterprises' (SMEs') OI search. In fact, while issues related to Big Data have been often examined in the context of high‐tech firms, the effects on SMEs' OI search strategies have not been extensively studied. This paper addresses this gap by developing a quantitative analysis on a sample of 123 Italian SMEs. The findings reveal that Big Data significantly influences SMEs' OI breadth, leading to increased external collaborations. In parallel, they do not affect SMEs' OI depth. Moreover, the impact varies among the different “3Vs” of Big Data, suggesting that some characteristics have a more pronounced effect on SMEs' OI strategies. Drawing on these insights, this study contributes to the understanding of the interplay between Big Data characteristics and SMEs' OI, offering hopefully valuable implications for both OI and Big Data literature and proposing avenues for further research and practice.

Digitalization in Italian SMEs: the transformation of marketing channels

AbstractThe evolution of marketing channel management and the integration of digital technologies in the overall marketing architecture have been deeply examined in the SME literature. Even if in academia the opportunities of digital in terms of performance, growth, and competitiveness are well recognized, in practice, SMEs are not always ready to fully exploit the potential of new technologies, reshaping their channels’ structure and strategies. In this paper, we display insights into the transformation and management of marketing channels for Italian manufacturing medium-sized enterprises. The study explores if and how “Made in Italy” companies are introducing digital channels in their market strategy, aiming at an omnichannel management perspective. We conduct a two-stage research design involving manufacturing medium-sized enterprises acting in the typical “Made in Italy” sectors: a Grounded Delphi Method with semi-structured interviews and the collection of data by a survey. We contribute to extending prior literature by presenting the enablers and barriers of specific marketing channels in the overall architecture and the main reasons for improving an omnichannel perspective in the perspective of the near future. In particular, the research identifies that Made in Italy medium-sized enterprises rest on decisions about adopting and managing specific channels and developing an omnichannel perspective on firm-specific and owner-managerial factors, while resource-related and environmental factors can be overcome, in particular, thanks to new partners. Based on this analysis, we then recommend specific research avenues to stimulate and advance further investigations.

Artificial Intelligence and the Great Reset: Impacts and Perspectives for Italian SMEs Business Model Innovation

The rise of artificial intelligence is fundamentally transforming the competitive landscape across various sectors, offering visionary enterprises new pathways to innovation development and to get a competitive edge. AI leverages data, analysis, and observations to perform tasks without hard coding, and benefits from self-learning and continuous improvement. We use Systems Thinking to frame how managers may adopt and integrate AI in business activities. We also investigate the motivations driving entrepreneurs to adopt AI solutions, and how they may impact on sustainable business model innovation, by administering a questionnaire to a sample of innovative Italian SMEs to get a comprehensive overview of the dynamics influencing AI adoption in business. This study sheds light on the intricate relationship between technology, sustainability, and corporate innovation. It offers both valuable insights for future research and for strategic managerial decisions on AI integration. Furthermore, it helps the development of innovative, sustainable business models in the evolving landscape of the Great Reset.

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.

Digital solutions for workplace safety: An empirical study on their adoption in Italian metalworking SMEs

Occupational safety is a critical aspect of the manufacturing sector, especially for small and medium-sized enterprises, which often face a safety divide compared to large companies due to significant differences in resources and awareness. Digital solutions can provide interesting support for dealing with specific hazardous situations and improving safety performance. However, there is a digital divide based on company size when it comes to the adoption of innovative digital solutions by small and medium-sized enterprises. This digital divide could widen the safety divide. To bridge these divides, the present research, through an extensive survey conducted among employers of Italian metalworking small and medium enterprises, explores various digital solutions and their potential to tackle hazardous situations in the workplace; it also addresses barriers and drivers influencing the adoption of the solutions and evaluates the results against different contextual factors characterizing the studied enterprises. Key barriers adopting digital solutions include the lack of perceived benefits, privacy concerns, implementation difficulties, and cost. On the other hand, the clarity and trustworthiness of the data collected and the ease of use of a digital solution can support the adoption. The study offers academic and managerial insights and contributes to the debate on the transition to Industry 5.0.

Corporate Sustainability Reporting Directive (CSRD) and His Future Application Scenario for Italian SMEs

Corporate Sustainability Reporting Directive (CSRD) and His Future Application Scenario for Italian SMEs

Work from home arrangements and organizational performance in Italian SMEs: evidence from the COVID-19 pandemic

AbstractWe use survey data on Italian small- and medium-sized enterprises collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate several dimensions of organizational performance, including measures of labor productivity and workers’ concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such a work practice is used intensively. Less deteriorated labor productivity and workers’ concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO practices seem to be important aspects behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH.

Entrepreneur and organizational resilience: A multilevel perspective on Italian SMEs

ABSTRACT Despite previous studies acknowledging that resilience operates at multiple levels (the individual, group, and organizational levels), there is a lack of research exploring how resilience works across levels. In this paper we explore how the individual resilience of entrepreneurs and organizational resilience affect the resilient response of their SMEs. Our hypotheses are tested through structural equation modeling using a sample of 517 Italian firms. The results show a positive relationship between the individual resilience of entrepreneurs and the resilient response of SMEs and show that organizational resilience mediates this relationship. The paper makes theoretical contributions to the literature on resilience management and practical contributions for entrepreneurs and policymakers.

Credit scoring: Does XGboost outperform logistic regression?A test on Italian SMEs

The old-fashioned logistic regression is still the most used method for credit scoring. Recent developments have evolved new instruments coming from the machine learning approach, including random forests.In this paper, we tested the efficiency of logistic regression and XGBoost methods for default forecasting on a sample of 35,535 cases from 7 different business sectors of Italian SMEs, on a set of 28 banking variables and 55 balance sheet ratios for verifying which approach is better supporting the lending decisions.With this aim, we developed an efficiency index for measuring each model's capability to correctly select good borrowers, balancing the different effects of refusing the loan to a good customer and lending to a defaulter. Also, we computed the balancing spread to quantify the different models' efficiency in terms of credit costs for the borrower firms.Results show that different sectors report different results. However, generally speaking, the two methods report similar capabilities, while the cutoff setting can make a substantial difference in the actual use of those models for lending decisions.

“All employees are equal … but some are more equal than others”. Role identity and nonfamily member discrimination in family SMEs

PurposeThis paper aims to investigate if, under which conditions, and with which consequences, nonfamily members have the perception of being discriminated against as a consequence of nepotism and adverse selection practices. This research also aims to investigate whether the carried-out role influences the perception of being discriminated against among nonfamily member employees.Design/methodology/approachA quantitative approach was carried out by adopting a structural equation model (SEM) analysis. The survey investigated a sample of Italian family SMEs (participating companies N = 186, total questionnaires collected N = 838).FindingsDrawing on the multiple identities theory, findings show that role salience (RS) effectively contributes to reducing the unwanted effects of perceived discrimination (PD) among nonfamily member employees. In doing so, this study deepens the knowledge of nonfamily member employment conditions and their consequences on strategic outcomes such as organizational commitment (OC), organizational justice (OJ) and intention to quit (ITQ).Research limitations/implicationsBy adopting a self-categorization approach, this study also advances current theoretical literature, as this methodological lens could help scholars further understand diversity in family business.Practical implicationsThis study suggests it would be advisable to implement human resource management practices based on job rotation to promote cohesion and reduce perceived distances.Social implicationsSMEs are the most widespread type of firm in the world; as a consequence, avoiding PD among nonfamily member employees has general ethical relevance.Originality/valueThis study expands current literature by showing that RS plays an important role in determining levels of PD. This study also advances current literature by focusing on the impact of multiple identities on fairness and commitment at individual and group levels of analysis of family businesses.

The relationship between biases and entrepreneurial Decision-Making. Evidence from Italian and Czech SMEs

The relationship between biases and entrepreneurial Decision-Making. Evidence from Italian and Czech SMEs

Leverage and SMEs financial stability: the role of banking competition

This work exploits a large panel dataset on Italian manufacturing SMEs to examine the relationship between leverage and firms’ financial stability. Specifically, we evaluate whether and to what extent this link is affected by the degree of competition characterising the local credit market in which firms operate. Using two measures of local banking competition – the H-statistic and the Boone indicator – our evidence indicates that the negative impact of leverage on firms’ financial health is greater for firms operating in more competitive banking markets. A plausible interpretation of this finding is that the competition drawbacks could prevail on its expected advantages, leading banks to be less inclined to establish lending relationships with risky firms, thus exacerbating their financial vulnerability.

Sustainability and bank credit access: New evidence from Italian SMEs

We test whether firm sustainability positively affects access to bank credit. We carry out a panel data analysis of 125 listed Italian SMEs across 14 regions over 2017–2021. A quantitative score comprising 20 items grouped into three areas, disclosure, processes, and governance, is computed to determine the level of implementation of sustainable practices of sampled SMEs. Results show that SMEs with more sustainable orientation have greater access to bank credit and better ability to pay the cost of bank debt. This, in turn, reinforces bank-SME relationships. We contribute to the literature on SMEs, highlighting the relationship between sustainability and the availability of bank loans.

Does gender matter in financing SMEs in green industry?

This study explores gender differentiation in access to credit which penalizes Italian female-led green SMEs compared to male-led ones. We carry out a panel analysis with 184,425 observations, of which 5855 refer to green firms, observing how the percentage of women among directors and managers (PWDM) affects access to bank credit and its costs. Our results demonstrate that green SMEs show different levels of financial debt compared to non-green ones depending on the PWDM. Our paper contributes to the literature in three ways. First, we investigate whether women-led green SMEs show different demands for financial credit in terms of amounts borrowed and mix between long/short-term bank credit; second, whether this potentially different credit demand is associated with coherent or incoherent effects on the cost of credit; and third, whether the credit demand of women-led green SMEs depends on the PWDM in the company.

Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs

The consequences of digital transformation are becoming more visible and pervasive. Despite extensive research on the technological side of the transformation, emphasizing its discontinuous nature, little is known about how managers reframe their cognitive models, reshape routines, and exploit novel organizational structures to implement digital transformation initiatives. We abductively characterize the micro-foundational elements of cognitive, routines, and organizational structure pillars by building on an integrative theoretical framework and looking at how twenty-four Italian SMEs in the agri-food sector pursue digital transformation. Significant differences emerge between SMEs with high and low levels of technological integration, leading to relevant theoretical and managerial implications on how SMEs can successfully navigate digital transformation. Finally, we open up new avenues for future research.

Changes in SMEs financing: risks and opportunities for agro-food companies

The financial and real crisis started in 2007-2008 has deeply transformed the way the Italian financial and capital market act. Italian SMEs need to be aware of the transformation not to be pushed out of the market itself and to take profit of the new relevant opportunities coming out thanks to the emerging new products and new intermediaries.The paper focuses the disappear of banks relationship lending and provides evidence about how to approach the market in the emerging "competing for capital" prevailing rule.It also stresses the relevance of ESG topics as emerging risk factor companies must look at when asking for new finance because of the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability related disclosures in the financial services (SFDR).

KM Challenges in Small KIBS Companies: Multi-case Analysis in Two Countries

Knowledge Intensive Business Services (KIBS) – i.e. companies like e.g. computer services, consulting, engineering, business communication, and R&D support - are key players in the modern economies. They stimulate the innovativeness of businesses and societies. Their competitiveness is based on knowledge, which is their key production factor and also the kind of “goods” they sell. The large majority of KIBS companies have a small or medium size, which leads to major challenges because they manage their cognitive assets in a substantially informal and undeliberate way. They face several obstacles to managing knowledge, partly due to their limited resources, but also to the knowledge-intensive and intangible nature of their business processes and outputs. Such challenges, when not successfully identified and faced, may negatively impact competitiveness. The paper illustrates the findings of a qualitative investigation aimed at exploring the main KM challenges that KIBS SMEs face. These challenges were analysed with specific reference to the key KM processes, i.e.: knowledge acquisition, knowledge documentation and storage, knowledge sharing, knowledge application, and knowledge protection. The research is a multiple-case study based on interviews to key informants of 23 Italian and Polish KIBS SMEs of different sectors. The analysis made it possible to find recurring issues and highlight differences. The study provides food for thought for researchers and practitioners willing to clarify what KM processes need proper solutions for the effective management of knowledge in small KIBS.

Lost in a black‐box? Interpretable machine learning for assessing Italian SMEs default

AbstractAcademic research and the financial industry have recently shown great interest in Machine Learning algorithms capable of solving complex learning tasks, although in the field of firms' default prediction the lack of interpretability has prevented an extensive adoption of the black‐box type of models. In order to overcome this drawback and maintain the high performances of black‐boxes, this paper has chosen a model‐agnostic approach. Accumulated Local Effects and Shapley values are used to shape the predictors' impact on the likelihood of default and rank them according to their contribution to the model outcome. Prediction is achieved by two Machine Learning algorithms (eXtreme Gradient Boosting and FeedForward Neural Networks) compared with three standard discriminant models. Results show that our analysis of the Italian Small and Medium Enterprises manufacturing industry benefits from the overall highest classification power by the eXtreme Gradient Boosting algorithm still maintaining a rich interpretation framework to support decisions.

Organizational cybersecurity readiness in the ICT sector: a quanti-qualitative assessment

PurposeCyberattacks are becoming increasingly widespread, and cybersecurity is therefore increasingly important. Although the technological aspects of cybersecurity are its best-known characteristics, the cybersecurity phenomenon goes beyond the detection of technological impacts, and encompasses all the dimensions of an organization. This study thus focusses on an additional set of organizational elements. The key elements of cybersecurity organizational readiness depicted here are cybersecurity awareness, cybersecurity culture and cybersecurity organizational resilience (OR). This study aims to qualitatively assess small and medium enterprises’ (SMEs) overall level of organizational cybersecurity readiness.Design/methodology/approachThis study focused on conducting a cybersecurity organizational readiness assessment using a sample of 53 Italian SMEs from the information and communication technology sector. Informed mixed method research, this study was conducted consistent with the principles of the explanatory sequential mixed method design, and adopting a quanti-qualitative methodology. The quantitative data were collected through a questionnaire. Qualitative data were subsequently collected through semi-structured interviews.FindingsAlthough many elements of the technical aspects of cybersecurity OR have yielded very encouraging results, there are still some areas that require improvement. These include those facets that constitute the foundation of cybersecurity awareness, and, thus, a cybersecurity culture. This result highlights that the areas in need of improvement are exactly those that are most important in fighting against cyber threats via organizational cybersecurity readiness.Originality/valueAlthough the importance of SMEs is obvious, evidence of such organizations’ attitudes to cybersecurity are still limited. This research is an attempt to depict the organizational issue related to cybersecurity, i.e. overall cybersecurity organizational readiness.

Profiling green innovative behaviour: Evidence from Italian technology-based SMEs

Profiling green innovative behaviour: Evidence from Italian technology-based SMEs