Based on original data on Italian firms specializing in medium- and low-tech industries, we study the relationship between firms’ upstream and downstream internationalization and their propensity to introduce products or processes that reduce environmental impact. Preliminary evidence suggests that geography plays an important role in green firms’ activities and supply chains. More precisely, results suggest that firms that outsource to and rely on non-local suppliers are less likely to engage in environmental innovations. Moreover, we verify that firms engaged in export activities play a similar and negative role, regardless of the export intensity and typology of foreign markets (i.e. developed versus emerging). Tapping global flows of knowledge by being a part of a multinational group positively spurs the development of green innovations, as for FDIs
Italian district small and medium enterprises (SMEs) developed aggressive strategies to extend their sales networks and supply chains abroad. Literature on districts offered alternative explanations about the impacts of internationalization on local manufacturing systems. The authors consider the evolution of Italian districts in the framework of global value chain approach, focusing on the role of leading firms. Based on a survey of 650 Italian SMEs and financial indicators, the paper describes the rise of a new district firm model, the open network, which becomes a key node of global value chains. The paper also analyses the relationships among internationalization, innovation strategies and performance of SMEs
The literature on firms’ early internationalization includes a huge number of studies investigating the entry stage of companies, while works on the post-entry growth and survival have recently been increasing. In this context, this study aims to better explain which factors determine the evolution of born globals (BGs) during their lifecycles. The authors analyze the growth processes of six Italian manufacturing BGs at different stages of their development, with a particular focus on the transition of the venture from entry to the post-entry stage. The findings show that the entrepreneurial capabilities of the founders have a crucial role during the first international expansion of the companies. As BGs enter the post-entry phase, a trade-off emerges between entrepreneurial capabilities and some specific firm resources aimed at achieving the sustainable growth of the company. Moreover, the authors identify the existence of a turning point when companies switch from the entry to the post-entry stage. During this phase, entrepreneurs manage a process to transform their individual capabilities into an organizational knowledge base. Future research areas and managerial implications are discussed
Purpose-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). Design/methodology/approach-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. Findings-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. Research limitations/implications-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. Practical implications-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. Originality/value-This paper advances understanding of the process of the international expansion of firms in EMs from a resource-based perspective
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