International management Prof. Stefano Micelli

Transcription

1 International management Prof. Stefano Micelli Academic year

2

3 Tradition and luxury

4 Craftsmanship and design

5 Craftsmanship and Technology

6 The evolution of the Italian industrial system

7 Overview The italian industrial districts in the international debate The evolution of the Italian industrial system in the last two decades A new generation of leading firms acting as interface between local and global

8 Three Italy: Bagnasco s point of view Italian economic development has to be understood focusing on three major regional areas (not two): 1. North West 2. South 3. NEC (North East Center) A. Bagnasco, Tre Italie. La problematica territoriale dello sviluppo italiano, Bologna 1977

9 The industrial district The concept of industrial district is proposed as the cornerstone of the Italian economic development. Becattini s intellectual effort is support by a number of influential scholars and institutions. Pyke F., Becattini G. and. Sengenberger W. (1990), Industrial districts and inter-firm co-operation in Italy, ILO Geneva

10 The industrial district: a definition I define the industrial district as a socio-territorial entity which is characterized by the active presence of both a community of people and a population of firms in one naturally and historically bounded area. In the district, unlike in other environments, such as manufacturing towns, community and firms tend to merge. Giacomo Becattini (1979, 1990)

11 A map of Italian Industrial Districts Fonte: Fiera di Milano

12 The second industrial divide

13 The local community and the firms The community The most important trait of the local community is its relatively homogeneous system of values and views, which is an expression of an ethic of work and activity, of the family, of reciprocity, and of change. The population of firms Each of the many firms which constitute the population tend to specialise in just one phase, or a few phases, of the production processes typical of the district. The firms become rooted in the territory, and this result cannot be conceptualised independently of its historical development."

14 Specific industries In which sectors industrial districts can compete with large companies? Among the processes of production which are technically suitable for a district-characterised economic development are those whose products have a final demand which is variable and differentiated in time and space - i.e. neither standardised nor constant.

15 Human resources When, to quote Marshall, "the secrets of the industry are in the air", the transmission of the skills acquired through the canonical channels (technical schools and factory training), is powerfully integrated by a spontaneous exchange and reorganisation of notions and opinions by "face to face" and "conviviality" relationships which daily life in the district offers with unusual frequency.

16 Competition and co-operation The industrial district combines, then, a very active kind of competitive behaviour on the part of its individuals, with a semi-conscious and semi-voluntary co-operation among them, resulting from the special way in which the socio-cultural system permeates and structures the market in the district.

17 Fifteen years, three phases : Post 2000 crisis: three shocks to overcome : Regaining competitiveness : Post Lehman crisis and its implications

18 Fonte: Traù, CSC, 2010 «Made in Italy» before the crisis

19 The success of «Made in Italy» before As Fonte: Marco Fortis - Fondazione Edison

20 A new internal composition Surplus commerciale estero delle 4A Automazione/meccanica Abbigliamento-Moda Arredo-casa Agro-industriale Fonte: Marco Fortis - Fondazione Edison

21 Manufacturing all around the world

22 International Trade of manufactured goods

23 Where doesitaly compete?

24 Still very competitive

25 also on a international basis Manufacturing export 2012 vs 1999

26 A new industrial player

27 A new generation of leading firms

28 The geography of the fourth capitalism Source: Mediobanca

29 Internationalization strategies

30 Italian s SMEs genus stabile The mid-size Italian firm represents a type of enterprise that is not in an intermediate stage of growth, typically referring to management literature. They are often "invisible champions". They represent an mid-sized company profile that no longer grows linearly in terms of size increments, but begins to invest in interorganisational relationships. (Serio & Barbaresco 2017)

31 Five peculiar dimensions 1. Type of governance, 2. Human resources management, 3. Internationalisation, 4. Innovation 5. Financial structure

32 Governance There is a positive relationship between openness to management and growth rates of mid-sized Italian companies The founding family is the owner of specific values that are shared with the management

33 Human Resource Direct and personal relationship with all workers A tendency to retain resources on both the managerial and technical fronts. Creation of a dynamic environment available for continuous upgrading Managers must demonstrate that they meet a certain values profile (Serio & Barbaresco 2017)

34 Innovation Medium-sized enterprises lead innovation in a larger business network The willingness to listen continuously to the customer and to the supply chain. Collaboration with research institutions (Universities, Research Centers, Professional Schools) From close innovation to an open innovation logic (Serio & Barbaresco 2017)

35 Internationalization 70% of the turnover developed in foreign markets All the main functions of the value chain are managed in Italy Three levels of intervention: Agents and distributors Partnership with local companies Creation of companies and plants for direct production abroad (Serio & Barbaresco 2017)

36 Financial structure Tangible equities account for 44% of the total assets compared to 12% for Italian multinationals. High degree of independence from bank debt Short financial cycles and high solvency (Serio & Barbaresco 2017)

37 Industrial districts: a comeback

38 A sectorial breakdown

39 Top performers