The medium-sized firms (MEs) are the cutting-edge of the Italian manufacturing sector. They have a crucial role in influencing the behavior of the local systems whose they are part (2/3 of the total firms are located in industrial districts). This study investigates the drivers of Italian MEs‟ productivity, a fundamental aspect for assessing their ability to compete successfully. The classical approach (i.e. TFP) in measuring productivity is inapplicable to MEs, whose business model is characterized by: i) specialized production at the leading technological edge; ii) organization based on vertical and horizontal supply chains, where the major players are small companies, specialized on single production phase; iii) marketing strategy focused on market niches, which are created/dominated thanks to product differentiation and continuous innovation and where MEs impose premium prices. The empirical evidence shows that: i) the RTS are not constant, but decreasing and size and productivity are inversely related; ii) the quality of the workforce is the major driver of productivity: companies that employ a low-salary workforce are less productive than those that use more skilled and costlier workers; iii) territories matter: knowledge-intensive service firms as well as infrastructures and managerial skills have a positive impact on productivity.

Coltorti, F., Venanzi, D. (2017). Productivity, competitiveness, and territories of the Italian medium-sized companies. INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE, 9(12), 86-100 [10.5539/ijef.v9n1 2p86].

Productivity, competitiveness, and territories of the Italian medium-sized companies

COLTORTI, FULVIO;Venanzi Daniela
2017-01-01

Abstract

The medium-sized firms (MEs) are the cutting-edge of the Italian manufacturing sector. They have a crucial role in influencing the behavior of the local systems whose they are part (2/3 of the total firms are located in industrial districts). This study investigates the drivers of Italian MEs‟ productivity, a fundamental aspect for assessing their ability to compete successfully. The classical approach (i.e. TFP) in measuring productivity is inapplicable to MEs, whose business model is characterized by: i) specialized production at the leading technological edge; ii) organization based on vertical and horizontal supply chains, where the major players are small companies, specialized on single production phase; iii) marketing strategy focused on market niches, which are created/dominated thanks to product differentiation and continuous innovation and where MEs impose premium prices. The empirical evidence shows that: i) the RTS are not constant, but decreasing and size and productivity are inversely related; ii) the quality of the workforce is the major driver of productivity: companies that employ a low-salary workforce are less productive than those that use more skilled and costlier workers; iii) territories matter: knowledge-intensive service firms as well as infrastructures and managerial skills have a positive impact on productivity.
Coltorti, F., Venanzi, D. (2017). Productivity, competitiveness, and territories of the Italian medium-sized companies. INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE, 9(12), 86-100 [10.5539/ijef.v9n1 2p86].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/326294
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