Strategic reactions of Italian firms to globalization under the EMU
DOI:
https://doi.org/10.7433/s98.2015.12Keywords:
firm strategy, Italian manufacturing businesses, productivity, globalizationAbstract
Purpose of the paper: The paper aims to investigate the strategic choices of Italian firms in response to globalization under the European Monetary Union.
Methodology: Firms are classified into four groups according to their productive efficiency and productivity dynamics. The probability of the firms to fall into each category is estimated using a multinomial logit regression.
Findings: We show that the firms followed different strategies to respond to globalization under the constraints of the European Monetary Union. Human resource strategies were at the core of strategic options: the firms that showed sustained productivity growth used a more qualified, higher salaried workforce, whereas other firms tried to keep up with the pace by lowering labour costs and exploiting the dualism of market labour.
Research limits: The study is based on a sample of continuing firms. It does not consider the real effects of entry and exit on technological progress and we do not analyse the productivity dynamics related to mergers and acquisitions.
Practical implications: The dualism of the labour market allowed the “regressive”, short-lived adaptation of a group of firms to access increased global competition. A balanced labour market would promote investment in human capital and push firms towards the use of innovation as a competitive strategy.
Originality of the paper: This investigation is based on an original database with a wealth of information on labour forces, which allows us to study firm strategies. The use of efficiency measures, combined with the ordered logit model, permits a novel look at the dynamics of the strategies of Italian firms.
References
ACEMOGLU D. (1998), “Why do new technologies complement skills? Directed technical change and wage inequality”, The Quarterly Journal of Economics, vol. 113, n. 4, pp. 1055-1089.
ANTONELLI C., CRESPI F., SCELLATO G. (2013), “Internal and external factors in innovation persistence”, Economics of Innovation and New Technology, vol. 22, n. 3, pp. 256-280.
ANTONELLI C., SCELLATO G. (2013), “Complexity and technological change: knowledge interactions and firm level total factor productivity”, Journal of Evolutionary Economics, vol. 23, n. 1, pp. 77-96.
ANTONELLI C., SCELLATO G. (2015), “Firms size and directed technical change”, Small Business Economics, vol. 44, n. 1, pp. 207-218.
ARGOTE L., MCEVILY B., REAGANS R. (2003), “Managing knowledge in organizations: An integrative framework and review of emerging themes”, Management Science, vol. 49, n. 4, pp. 571-82.
ARVANITIS S. (2005), “Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy”, Industrial and Corporate Change, vol. 14, n. 6, pp. 993-1016.
BAINES T.S., LIGHTFOOT H.W., BENEDETTINI O., KAY J.M. (2009), “The servitization of manufacturing: a review of literature and reflection on future challenges”, Journal of Manufacturing Technology Management, vol. 21, n. 5, pp. 547-567.
BARNEY J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, vol. 17, n. 1, pp. 99-20.
BARTELSMAN E.J., HALTIWANGER J., SCARPETTA S. (2013), “Cross-country differences in productivity: The role of allocation and selection”, American Economic Review, vol. 103, n. 1, pp. 305-334.
BOERI T., GARIBALDI P. (2007), “Two tier reforms of employment protection: A honeymoon effect?”, The Economic Journal, vol. 117, n. 521, pp. 357-385.
BOTTAZZI G., DOSI G., JACOBY N., SECCHI A., TAMAGNI F. (2010), “Corporate performances and market selection: some comparative evidence”, Industrial and Corporate Change, vol. 19, n. 6, pp. 1953-1996.
BOTTAZZI G., GRAZZI M., SECCHI A., TAMAGNI F. (2011), “Financial and economic determinants of firm default”, Journal of Evolutionary Economics, vol. 21, n. 3, pp. 373-406.
BOTTAZZI G., SECCHI A., TAMAGNI F. (2008), “Productivity, profitability and financial performance”, Industrial and Corporate Change, vol. 17, n. 4, pp. 711-751.
BUGAMELLI M., SCHIVARDI F., ZIZZA R. (2010), “The euro and firm restructuring”, in Alesina A., Giavazzi F. (a cura di), Europe and the euro, University of Chicago Press, Chicago.
COAD A. (2011), “Appropriate business strategy for leaders and laggards”, Industrial and Corporate Change, vol. 20, n. 4, pp. 1049-1079.
COHEN W.M., LEVINTHAL D.A. (1990), “Absorptive-capacity. A new perspective on learning and innovation”, Administrative Science Quarterly, vol. 35, n. 1, pp. 128-152.
DALLI D., RESCINITI R., TUNISINI A. (2010), “Sviluppo e competitività delle medie imprese italiane dell’era globale”, Mercati e competitività, n. 3, pp. 19-46.
DHAWAN R. (2001), “Firm size and productivity differential: theory and evidence from a panel of U.S. firms”, Journal of Economic Behavior and Organization, vol. 44, n. 3, pp. 269-293.
DIAZ M.A., SANCHEZ R. (2008), “Firm size and productivity in Spain: a stochastic frontier analysis”, Small Business Economics, vol. 30, n. 3, pp. 315-323.
DOLADO J.J., STUCCHI R. (2008), “Do temporary contracts affect TFP? Evidence from Spanish manufacturing firms”, IZA Discussion Paper, n. 3832.
DOSI G., GRAZZI M., TOMASI C., ZELI A. (2012), “Turbolence underneath the big calm? Exploring the micro-evidence behind the flat trend of manufacturing productivity in Italy”, Small Business Economics, vol. 39, n. 4, pp. 1043-1067.
FAGIOLO G., LUZZI A. (2006), “Do liquidity constraints matter in explaining firm size and growth? Evidence from the Italian manufacturing industry”, Industrial and Corporate Change, vol. 15, n. 1, pp. 1-39.
HALL B.H., LOTTI F., MAIRESSE J. (2009), “Innovation and productivity in SMEs. Empirical evidence for Italy”, Small Business Economics, vol. 33, n. 1, pp. 13-33.
HANNAN M.T., FREEMAN J. (1989), Organizational Ecology, Harvard University Press, Cambridge, MA.
HARRIS R., MOFFAT J. (2011), “Plant-level determinants of total factor productivity in Great Britain, 1997-2006”, SERC Discussion Papers, n. 64.
HIJSEN A., MONDAUTO L., SCARPETTA S. (2013), “The perverse effect of job-security provision on job security in Italy: results from a regression discontinuity design”, Institute for the Study of Labor, IZA DP n. 7594.
IWAI K. (2000), “A contribution to the evolutionary theory of innovation, imitation and growth”, Journal of Economic Behavior and Organization, vol. 43, n. 2, pp. 167-198.
KÖNIG M., LORENZ J., ZILIBOTTI F. (2012), “Innovation vs imitation and the evolution of productivity distributions”, CEPR Discussion Papers, n. 8843.
LA FERRARA E., MARCELLINO M. (2000), “TFP, costs, and public infrastructure: an equivocal relationship”, Working Paper, n. 176, Igier.
LUCIDI F., KLEINKNECHT A. (2009), “Little innovation, many jobs: An econometric analysis of the Italian labour productivity crisis”, Cambridge Journal of Economics, vol. 34, n. 3, pp. 525-546.
MATTIACCI A. (2008), Nicchia e competitività. Strategie di focalizzazione per la competizione globale, Carocci Editore, Roma.
MARROCU E., PACI R. (2010), “The effects of public capital on the productivity of the Italian regions”, Applied Economics, vol. 42, n. 8, pp. 989-1002.
PELLEGRINO G., PIVA M., VIVARELLI M. (2011), “Young firms and innovation: a microeconometric analysis”, Structural Change and Economic Dynamics, vol. 23, n. 4, pp. 329-340.
RESCINITI R. (2009), “La competitività”, in Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di), Un Tesoro Emergente: Le Medie Imprese Italiane dell’Era Globale, Franco Angeli, Milano.
ROSSI S. (2009), Controtempo. L'italia nella crisi mondiale, Laterza, Bari.
SAMPAIO DE SOUSA M.C., STOSIC B. (2005), “Technical efficiency of the Brazilian municipalities: correcting nonparametric frontier measurement for outliers”, Journal of Productivity Analysis, vol. 24, n. 2, pp. 157-181.
TEECE D., PISANO G. (1994), “The dynamic capabilities of firms: an introduction”, Industrial and Corporate Change, vol. 3, n. 3, pp. 537-556.
TEECE D., PISANO G., SHUEN A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, vol. 18, n. 7, pp. 509-533.
TRENTO S., ZANINOTTO E. (2013), “Una politica industriale utile e sostenibile”, Il Mulino, vol. 62, n. 2, pp. 228-236.
TUNDIS E., ZANINOTTO E. (2012), “La caduta della produttività industriale in Italia e nelle regioni del Nord Est: una rilettura”, L’Industria, vol. 33, n. 1, pp. 165-191.
TUNDIS E., ZANINOTTO E., GABRIELE R., TRENTO S. (2012), “Crescita della produttività, progresso tecnico e impiego del lavoro nelle imprese manifatturiere italiane: 1996-2006”, Economia e Politica Industriale, vol. 39, n. 4, pp. 25-61.
VARALDO R. (2006), “Il nuovo modello competitivo e aziendale dei distretti industriali”, Economia e Politica Industriale, n. 1, pp. 25-42.
VARALDO R. (2009), “Introduzione”, in Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di), Un Tesoro Emergente: Le Medie Imprese Italiane dell’Era Globale, Franco Angeli, Milano.
WERNERFELT B. (1984), “A resource-based view of the firm”, Strategic Management Journal, vol. 5, n. 2, pp. 171-180.
ANTONELLI C., CRESPI F., SCELLATO G. (2013), “Internal and external factors in innovation persistence”, Economics of Innovation and New Technology, vol. 22, n. 3, pp. 256-280.
ANTONELLI C., SCELLATO G. (2013), “Complexity and technological change: knowledge interactions and firm level total factor productivity”, Journal of Evolutionary Economics, vol. 23, n. 1, pp. 77-96.
ANTONELLI C., SCELLATO G. (2015), “Firms size and directed technical change”, Small Business Economics, vol. 44, n. 1, pp. 207-218.
ARGOTE L., MCEVILY B., REAGANS R. (2003), “Managing knowledge in organizations: An integrative framework and review of emerging themes”, Management Science, vol. 49, n. 4, pp. 571-82.
ARVANITIS S. (2005), “Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy”, Industrial and Corporate Change, vol. 14, n. 6, pp. 993-1016.
BAINES T.S., LIGHTFOOT H.W., BENEDETTINI O., KAY J.M. (2009), “The servitization of manufacturing: a review of literature and reflection on future challenges”, Journal of Manufacturing Technology Management, vol. 21, n. 5, pp. 547-567.
BARNEY J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, vol. 17, n. 1, pp. 99-20.
BARTELSMAN E.J., HALTIWANGER J., SCARPETTA S. (2013), “Cross-country differences in productivity: The role of allocation and selection”, American Economic Review, vol. 103, n. 1, pp. 305-334.
BOERI T., GARIBALDI P. (2007), “Two tier reforms of employment protection: A honeymoon effect?”, The Economic Journal, vol. 117, n. 521, pp. 357-385.
BOTTAZZI G., DOSI G., JACOBY N., SECCHI A., TAMAGNI F. (2010), “Corporate performances and market selection: some comparative evidence”, Industrial and Corporate Change, vol. 19, n. 6, pp. 1953-1996.
BOTTAZZI G., GRAZZI M., SECCHI A., TAMAGNI F. (2011), “Financial and economic determinants of firm default”, Journal of Evolutionary Economics, vol. 21, n. 3, pp. 373-406.
BOTTAZZI G., SECCHI A., TAMAGNI F. (2008), “Productivity, profitability and financial performance”, Industrial and Corporate Change, vol. 17, n. 4, pp. 711-751.
BUGAMELLI M., SCHIVARDI F., ZIZZA R. (2010), “The euro and firm restructuring”, in Alesina A., Giavazzi F. (a cura di), Europe and the euro, University of Chicago Press, Chicago.
COAD A. (2011), “Appropriate business strategy for leaders and laggards”, Industrial and Corporate Change, vol. 20, n. 4, pp. 1049-1079.
COHEN W.M., LEVINTHAL D.A. (1990), “Absorptive-capacity. A new perspective on learning and innovation”, Administrative Science Quarterly, vol. 35, n. 1, pp. 128-152.
DALLI D., RESCINITI R., TUNISINI A. (2010), “Sviluppo e competitività delle medie imprese italiane dell’era globale”, Mercati e competitività, n. 3, pp. 19-46.
DHAWAN R. (2001), “Firm size and productivity differential: theory and evidence from a panel of U.S. firms”, Journal of Economic Behavior and Organization, vol. 44, n. 3, pp. 269-293.
DIAZ M.A., SANCHEZ R. (2008), “Firm size and productivity in Spain: a stochastic frontier analysis”, Small Business Economics, vol. 30, n. 3, pp. 315-323.
DOLADO J.J., STUCCHI R. (2008), “Do temporary contracts affect TFP? Evidence from Spanish manufacturing firms”, IZA Discussion Paper, n. 3832.
DOSI G., GRAZZI M., TOMASI C., ZELI A. (2012), “Turbolence underneath the big calm? Exploring the micro-evidence behind the flat trend of manufacturing productivity in Italy”, Small Business Economics, vol. 39, n. 4, pp. 1043-1067.
FAGIOLO G., LUZZI A. (2006), “Do liquidity constraints matter in explaining firm size and growth? Evidence from the Italian manufacturing industry”, Industrial and Corporate Change, vol. 15, n. 1, pp. 1-39.
HALL B.H., LOTTI F., MAIRESSE J. (2009), “Innovation and productivity in SMEs. Empirical evidence for Italy”, Small Business Economics, vol. 33, n. 1, pp. 13-33.
HANNAN M.T., FREEMAN J. (1989), Organizational Ecology, Harvard University Press, Cambridge, MA.
HARRIS R., MOFFAT J. (2011), “Plant-level determinants of total factor productivity in Great Britain, 1997-2006”, SERC Discussion Papers, n. 64.
HIJSEN A., MONDAUTO L., SCARPETTA S. (2013), “The perverse effect of job-security provision on job security in Italy: results from a regression discontinuity design”, Institute for the Study of Labor, IZA DP n. 7594.
IWAI K. (2000), “A contribution to the evolutionary theory of innovation, imitation and growth”, Journal of Economic Behavior and Organization, vol. 43, n. 2, pp. 167-198.
KÖNIG M., LORENZ J., ZILIBOTTI F. (2012), “Innovation vs imitation and the evolution of productivity distributions”, CEPR Discussion Papers, n. 8843.
LA FERRARA E., MARCELLINO M. (2000), “TFP, costs, and public infrastructure: an equivocal relationship”, Working Paper, n. 176, Igier.
LUCIDI F., KLEINKNECHT A. (2009), “Little innovation, many jobs: An econometric analysis of the Italian labour productivity crisis”, Cambridge Journal of Economics, vol. 34, n. 3, pp. 525-546.
MATTIACCI A. (2008), Nicchia e competitività. Strategie di focalizzazione per la competizione globale, Carocci Editore, Roma.
MARROCU E., PACI R. (2010), “The effects of public capital on the productivity of the Italian regions”, Applied Economics, vol. 42, n. 8, pp. 989-1002.
PELLEGRINO G., PIVA M., VIVARELLI M. (2011), “Young firms and innovation: a microeconometric analysis”, Structural Change and Economic Dynamics, vol. 23, n. 4, pp. 329-340.
RESCINITI R. (2009), “La competitività”, in Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di), Un Tesoro Emergente: Le Medie Imprese Italiane dell’Era Globale, Franco Angeli, Milano.
ROSSI S. (2009), Controtempo. L'italia nella crisi mondiale, Laterza, Bari.
SAMPAIO DE SOUSA M.C., STOSIC B. (2005), “Technical efficiency of the Brazilian municipalities: correcting nonparametric frontier measurement for outliers”, Journal of Productivity Analysis, vol. 24, n. 2, pp. 157-181.
TEECE D., PISANO G. (1994), “The dynamic capabilities of firms: an introduction”, Industrial and Corporate Change, vol. 3, n. 3, pp. 537-556.
TEECE D., PISANO G., SHUEN A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, vol. 18, n. 7, pp. 509-533.
TRENTO S., ZANINOTTO E. (2013), “Una politica industriale utile e sostenibile”, Il Mulino, vol. 62, n. 2, pp. 228-236.
TUNDIS E., ZANINOTTO E. (2012), “La caduta della produttività industriale in Italia e nelle regioni del Nord Est: una rilettura”, L’Industria, vol. 33, n. 1, pp. 165-191.
TUNDIS E., ZANINOTTO E., GABRIELE R., TRENTO S. (2012), “Crescita della produttività, progresso tecnico e impiego del lavoro nelle imprese manifatturiere italiane: 1996-2006”, Economia e Politica Industriale, vol. 39, n. 4, pp. 25-61.
VARALDO R. (2006), “Il nuovo modello competitivo e aziendale dei distretti industriali”, Economia e Politica Industriale, n. 1, pp. 25-42.
VARALDO R. (2009), “Introduzione”, in Varaldo R., Dalli D., Resciniti R., Tunisini A. (a cura di), Un Tesoro Emergente: Le Medie Imprese Italiane dell’Era Globale, Franco Angeli, Milano.
WERNERFELT B. (1984), “A resource-based view of the firm”, Strategic Management Journal, vol. 5, n. 2, pp. 171-180.
Downloads
Published
2015-12-30
Issue
Section
Articoli
