Small Italian Companies Research Articles

Machine learning techniques for default prediction: an application to small Italian companies

Default prediction is the primary goal of credit risk management. This problem has long been tackled using well-established statistical classification models. Still, nowadays, the availability of large datasets and cheap software implementations makes it possible to employ machine learning techniques. This paper uses a large sample of small Italian companies to compare the performance of various machine learning classifiers and a more traditional logistic regression approach. In particular, we perform feature selection, use the algorithms for default prediction, evaluate their accuracy, and find a more suitable threshold as a function of sensitivity and specificity. Our outcomes suggest that machine learning is slightly better than logistic regression. However, the relatively small performance gain is insufficient to conclude that classical statistical classifiers should be abandoned, as they are characterized by more straightforward interpretation and implementation.

How can “No-Growth Companies” succeed? Lessons from Majestic (1973–2012)

ABSTRACT Corporate growth triggers a virtuous circle by creating economies of scale and making more financial resources available to invest in powerful differentiation policies and in growth itself. Family businesses struggle to grow and, in some industries, are replaced by larger companies. By focusing on the case of a small Italian company, this paper elucidates how small companies can target particular markets and thereby coexist with large companies, despite the latter’s economies of scale and superior capabilities. The ‘no-growth company’ avoids frontal battles with large corporations by occupying declining market segments in which large rivals no longer invest in improving their products. To seize such opportunities to gain market share with limited financial resources, the no-growth company needs to exploit available technologies and differentiate its products by combining existing functionalities or improving its product design.

Remote Working in the COVID-19 Pandemic: Results From a Questionnaire on the Perceived Noise Annoyance

Noisiness in the working environment was largely proved to have effects on the working activity and performance. To limit the spreading of the COVID-19 pandemic in the first wave between March and May 2020, Italian workers had massively started performing remote working. Insights on the subjective perception of noise annoyance under the remote working settings were thus necessary. Workers from a university and from several large and small Italian companies, resulting in 1,934 participants overall, answered to a questionnaire on the perception of noise annoyance in the remote working environment. A total of 57% of the responding workers stated to be sensitive to noise. The questionnaire was delivered online; data were recorded anonymously and then aggregated for statistical analyses. Results show that 55% of the workers perform their activity in an isolated room of the home environment, 43% in a shared room (e.g., kitchen, living room), and 2% in an outdoor space, with the majority of workers (57%) performing activity without other people in the environment. Among the noise sources investigated, 25% of workers recognize the noise generated by people (e.g., talking, moving, calling, listening to music) as the main source of disturbance. The negative consequences of noise annoyance during the remote working hours are mainly related to a loss of concentration and to a difficulty in relaxing. Furthermore, workers reported to get easily irritated by noise generated from the neighborhoods or from the housemates as it tends to distract from finishing a task.

Top management characteristics and intellectual capital performance in small Italian companies

PurposeThis study aims to explore the relationship between top management characteristics and intellectual capital (IC) performance of small companies.Design/methodology/approachThis research offers an empirical investigation into a unique sample of 135 small Italian companies, which have been recognised as meeting legal values. This study uses a regression analysis to test whether CEO age, CEO connections and management team size affect IC performance.FindingsCompanies managed by CEOs with higher levels of connections and with a greater number of managers exhibit improved IC performance. In addition, this study provides evidence that companies with older CEOs demonstrate better IC efficiency.Research limitations/implicationsThis study does not consider all top management-specific factors and incentives that may affect IC performance and uses a limited sample of companies.Practical implicationsThis study suggests that increased network activity and larger management teams are beneficial for small companies to improve the efficiency of IC used.Originality/valueThe work offers novel empirical evidence to understand what governance and management-specific factors affect the efficiency in managing IC assets in small companies.

Work-Related Psychological Injury Is Associated with Metabolic Syndrome Components in Apparently Healthy Workers.

ObjectiveThe aim of this study was to evaluate the association between psychological damage caused by common occupational trauma and metabolic syndrome (MES).Method571 workers from 20 small Italian companies were invited to fill in the Psychological Injury Risk Indicator (PIRI) during their routine medical examination at the workplace.ResultsCompared to workers with no psychological injury, workers with a high PIRI score had a significantly increased risk of having at least one metabolic syndrome component (adjusted hazards ratio, 1.8; 95% confidence interval, 1.2 to 2.6). There was a significant increase in the risk of hypertriglyceridemia in male workers (OR 2.53 CI95% 1.03-6.22), and of hypertension in female workers (OR 2.45 CI95% 1.29-4.66).ConclusionPsychological injury related to common occupational trauma may be a modifiable risk factor for metabolic syndrome.

The role of servitization for small firms: drivers versus barriers

The purpose of this study was to explore the servitization approach in order to understand the development of this trend among small Italian companies. In doing so, this study adopted a qualitative method and data were collected via in-depth interviews with managers of firms belonging to the footwear industry - an important sector for the Italian economy. Data analysis was realised through NVivo software, thereby providing a first understanding of the drivers that lead these companies to become 'servitized', as well as the main obstacles they face when considering providing services beyond their core offering. This study suggests important implications both for managers and marketing scholars. For academics, it extends the existing knowledge of the factors that influence this organisational and managerial change, and enriches the body of knowledge of the main drivers of and barriers to servitization. For practitioners, it helps in the understanding of the main advantages and potential obstacles to developing a servitization process.

MDD Adoption in a Small Company: Risk Management and Stakeholders' Acceptance

This article presents the knowledge and experience acquired trough the process of establishing MDD practices within a small Italian company. Special attention has been devoted to project constraints, perceived risks, and relative mitigation strategies. Moreover the article evaluates how the introduction of the MDD approach was received by different stakeholders. In particular a structured questionnaire was the instrument used to reveal and collect the perceptions by different roles involved in the MDD adoption process. The case study considered development of applications conforming to a prescriptive architectural framework, which addresses a complex multi-tier architecture; the solution aims at describing component composition while avoiding both repeating tasks and writing awkward configurations.

The Structure of Work, Patterns of Communication, and Organizational Learning: A Three-Nation Comparison

National differences in patterns of new product development reflect differences in patterns of communication and delegation within the organization. In mature U.S. corporations, projects are generally controlled by superiors and implemented by subordinates who compete with each other. People making critical decisions may lack critical information while the people responsible for implementation may not have a stake in overall project success. The result is frequent failure. In U.S. startups, smaller Italian companies and in Japanese management groups, work is carried out by cooperative groups. Members have a shared stake in overall project success. Decisions are made to promote overall project success. Differences among small group performance in U.S., Italian, and Japanese companies reflect differences in the scope of group activity. U.S. startups can innovate technologies, business processes, and products. Innovations by small Italian companies are generally restricted to changes that compliment the activities of other firms in their network. Japanese business groups operate within a highly structured corporate environment. Innovations tend to be limited to elaborations in core technologies, processes, and products.

Computer integrated manufacturing in small companies: a case study

A methodology for introducing computer integrated manufacturing (CIM) technology in small companies has been developed. With the aim to assess the capabilities in real applications of the proposed approach, a case study is presented in this paper. The case study refers to a small Italian company (Italpneumatica Sud) producing pneumatic components under one of the leading trademarks in the world (SMC). Results of first experimental tests demonstrate ability of the developed methodology in improving overall company performances, maintaining at the same time low implementation costs.

Italy’s Black Economy

Black economy activities are widespread in nearly all economies but Italy appears to have a pronounced problem in this area. Small privately‐owned companies in Italy find it relatively easy to engage in black economy activities – mainly the practice of tax evasion, that is, fraudulent and illegal activities undertaken to reduce tax liability. Illustrates how the black economy works in a typical small Italian company. Also examines some of the main implications for government and companies: in particular, the effects of a new law to curb tax evasion by small companies.