Search results

Within the theoretical framework of global value chains (GVCs), much importance has been given to industrial districts (IDs) and their role as localized manufacturing systems. The regionalization of GVC has opened new questions on the location of manufacturing activities and the potential consequences at the ID level. The reshoring phenomenon challenges internationalization processes, changing the configuration in trade dynamics for IDs. This paper aims to investigate which are the main internationalization patterns followed by district small and medium enterprises (SMEs) under the perspective of the regionalization of GVCs. This will help both practitioners and policymakers to better understand internationalization trajectories aimed at sustaining the economic development of district firms and territories.

The analysis has been conducted using a survey carried out on 210 ID SMEs in the furniture, mechanics and fashion industries located in Veneto and Friuli Venezia Giulia regions, in northeastern Italy. Moreover, data released from the Italian Customs Agency have been merged to detect the trends of interviewed firms’ internationalization between 2005 and 2019.

The results highlight how the geography of internationalization has changed over time, in particular following the regionalization of the GVCs. There are also differences among the industry specializations of IDs. This could be attributable to the strategy pursued by each firm to control the competition both in the domestic market and abroad, also in relation to GVC lead firms’ location strategies.

This paper applies new data on the analysis of ID SMEs related to international transactions over a long period of time. In doing this, this paper adds new insights to the GVC literature and future policies to be implemented to foster the participation of district firms in the global scenario.

The advantages of offshoring are increasingly under scrutiny, and coronavirus disease 2019 (COVID-19) has advanced the debate, calling for a redefinition of firms' production location strategies. While attention has primarily focused on the relocation of second-degree strategies, such as back-shoring, near-shoring and further offshoring, there are also other alternatives, including home country-based domestic product and process innovations, and the development of new business activities. The objective of the authors' paper is to identify which factors influence decision-makers when they select and implement such post-offshoring strategic alternatives.

The authors consider 11 Italian manufacturing companies that implemented these strategies and analyze triggers, drivers, enabling factors and barriers of the decision phase, as well as content, governance mode and timing of the implementation phase.

Based on the collected findings, the authors suggest a set of propositions for further research. First of all, firms can simultaneously manage multiple strategies by adopting an ambidextrous approach through which to mitigate supply chain risks. They may integrate their domestic and international production activities, but the home country remains central for innovations and production of high-end products and Industry 4.0 technologies increases the probability of investing in their home country. At the same time, lack of competence induces selective near- and back-shoring, while full back-shoring is mainly a consequence of managerial mistakes. Competence availability acts as a barrier to relocation in the home country, inducing the implementation of either an insourcing strategy or a combination of insourcing and outsourcing.

The authors' work identifies post-offshoring as a dynamic process and provides insights into the post-pandemic scenario. The conceptual framework may represent a useful tool for company managers in re-evaluating their initial offshoring strategies.

This article aims to contribute to the digital servitisation literature by investigating the interrelations amongst Industry 4.0 technologies, servitisation and the performance of manufacturing small and medium-sized enterprises (SMEs).

The research uses survey data drawn from 200 manufacturing SMEs operating in the metals and machinery sector in Italy.

The study shows that Industry 4.0 technologies – Internet of Things (IoT), advanced simulation, cloud computing and Big Data Analytics (BDA) – positively moderate the relationship between servitisation and the performance of SMEs.

The study supports the need for firm managers of manufacturing SMEs to align servitisation and technological investments, suggesting that the synergic deployment of Industry 4.0 technologies supports servitisation performance.

The study supports the need for firm managers operating in business-to-business contexts to align their technological investments and servitisation strategies, suggesting that the synergic deployment of these Industry 4.0 technologies empower the effectiveness of servitisation strategies in terms of performance achieved.

The study highlights the moderating role played by specific Industry 4.0 technologies in the servitisation–performance relationship, opening avenues for future research exploring the mechanisms that underpin this complex relationship.

Defined as local manufacturing systems, industrial districts have been recognized as particularly important for the location of firms’ manufacturing activities intertwined with innovation processes. The debate on the internationalization of production has stressed the low value related to manufacturing within value chain activities (smile framework), emphasizing the need to focus on high value-added activities (R&D or marketing). Following multinational enterprises’ internationalization strategies, also district firms have progressively offshored their production phases in the past years. However, recent studies focused on backshoring have revamped the attention on the domestic control of production for firms’ competitiveness. This chapter explores district firms’ location choices for manufacturing activities between local and global. Based on an empirical analysis of about 260 Italian district firms specialized in mechanics, furniture, and fashion and supported by a case study investigation, our results show that despite district internationalization processes, a non-negligible amount of firms still carry out – in-house or through outsourcing – production activities at district level. Larger firms couple district production and long-term upstream outsourced internationalization activities. The district system confirms its role of pooling specialized competences and product know-how, being decisive for firms’ innovation and responsiveness to national and international markets. Backshoring, instead, is a very limited phenomenon and linked to upgrading strategies.

This empirical paper investigates how entrepreneurial firms change their business models in the context of internationalization by identifying different forms of business model innovation (BMI) and exploring the interrelationship between BMI and internationalization.

Based on the dynamic states approach of entrepreneurship (Levie and Lichtenstein, 2010), this paper analyses primary and secondary data from nine European firms following a multiple case study approach.

This paper presents four patterns of radical change and eight types of incremental adaption with-in business models in the context of internationalization. We describe these BMI patterns and types, and we also show how they contribute to increasing involvement in international business activities and the internationalization-related triggers that might cause them.

This paper contributes to a better understanding of the BMI process in the course of internationalization. It also highlights the complex interrelationship between BMI and internationalization by building on a progressive theoretical approach.

Manufacturing offshoring has received substantial attention within international business studies that have explored where activities are located and how they are governed. However, recent examples of manufacturing relocation to the home country/region have put the advantages of offshoring under scrutiny, since the location of production activities in high-cost countries may have positive impacts in terms of innovation and marketing opportunities. Despite the growing interest in offshoring and “relocations of second degree,” there is a lack of knowledge on the alternative strategies firms may implement after offshoring. This chapter aims to propose a comprehensive framework to summarize and classify the multiple alternatives firms may implement after the initial relocation abroad of manufacturing activities. Based on an extensive literature review and a comparative analysis of Italian case studies, the chapter suggests theoretical advancement in the theory of location of business activities, offering multiple post-offshoring strategic options that may be implemented individually or in combination. In so doing, the analysis also stresses the variety of strategic paths and the complexity of choices concerning manufacturing location, emphasizing reshoring as a nuanced phenomenon and exploring how domestic and foreign locations can complement each other and be mutually reinforcing.

This paper aims at enriching the literature on international business (IB) studies to include insights from Global Value Chain (GVC) analysis to better explain how MNCs can orchestrate a global network organization. A first important contribution of the GVC literature is that it shifts the focus from single firms to their value chains, providing instruments to study how activities are split and organized among different firms at the industry level, and how MNCs can implement different governing mechanisms within a network-based setting. The GVC literature also highlights that retailers (as global buyers) often act as ‘lead firms’ in shaping the trajectories of global industries, while IB studies have so far focused predominantly on manufacturing firms. A fine-grained analysis of alternative forms of governance characterizing value chains can offer additional elements in explaining how MNCs can manage their network relationships in a global scenario. Finally, through their focus on upgrading, GVC studies suggest that knowledge flows and innovation dynamics taking place within value chains are as important as those taking place within the MNC’s organizational border. We conclude by arguing that these insights can help the IB literature to examine the challenges and opportunities MNCs face in engaging with suppliers and to explain the dynamic evolution of orchestrating global activities at the global level.

The purpose of this paper is to compare supply network strategies of district firms (from now on ID) and non‐district (non‐ID) firms with the aim of outlining emerging strategies as well as identifying similarities and differences between business models.

The analysis is based on a quantitative approach: the TeDIS survey focuses on 45 leading Italian districts and SMEs located outside districts (Made in Italy sectors). Results refer to 630 Italian firms.

There are more similarities than differences between the approach of ID and non‐ID companies to supply networks. ID firms rely more on local systems in terms of supply networks, while non‐ID firms have also invested at national level (subcontracting networks). The global geographical extension of supply networks stresses the ID companies' search for efficiency in addition to value‐added competences. Non‐ID firms have a more hierarchical approach to internationalization than ID firms, but differences decrease as the size of the companies increases.

The study is still preliminary. Future research should explore the relationships between the strategic approach to supply networks of district firms and non‐ID firms in terms of characteristics of the relationship management and aims of relationships, also with a focus on the size of these firms.

Within the existing literature, the original contribution of the paper lies in its comparison of supply network strategies in ID and non‐ID firms based on a significant quantitative analysis.

The purpose of this paper is to understand whether and how specific capabilities at the firm level can sustain firms during the process of international expansion in emerging markets (EMs).

A quantitative study was carried out, and the authors analyzed data from a sample of 271 manufacturing firms. A logistic regression was used to check for differences in the endowment of resources and capabilities of firms solely focussing on advanced markets (AMs) or extending their international scope to EMs as well.

Firms that expanded their business in EMs showed a significantly higher endowment of international experience and marketing capabilities compared with firms that focussed only on AMs. The authors found that the size of the firm is irrelevant: even small firms can reach EMs by leveraging an appropriate set of capabilities.

The study is cross-sectional and cannot provide a longitudinal view of the process of capability development. Future research will be needed to detail the process of capability development during the international expansion of firms into EMs.

Regardless of size, firms that plan to enter EMs should develop specific capabilities, especially marketing capabilities, to increase the likelihood of success. Already internationalized firms have a considerable advantage due to the knowledge they have accumulated in other markets.

This paper advances understanding of the process of the international expansion of firms in EMs from a resource-based perspective.