Do Inter-firm Networks Make Access to Finance Easier? Issues and Empirical Evidence

Scalera, Domenico; Zazzaro, Alberto

doi:10.4337/9781849809696.00009

Cited by 7 publications

(6 citation statements)

References 98 publications

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“…Inter-firm credit has been found to be particularly relevant in productive clusters, e.g. Italian industrial districts: evidence shows that geographic proximity, reciprocity, and repeated transactions between suppliers and customers increase reputation and trust and reduce asymmetric information problems, thus favouring inter-firm credit relationships (DEI OTTATI, 1994;UGHETTO, 2009;SCALERA and ZAZZARO, 2011).…”

Section: Localization Economies and Productivitymentioning

confidence: 97%

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Ganau

2015

Regional Studies

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GANAU R. Productivity, credit constraints and the role of short-run localization economies: micro-evidence from Italy, Regional Studies. This paper investigates whether Italian manufacturing firms' productivity is affected by credit constraints, and whether short-run localization economies foster productivity both directly and indirectly, moderating the negative effects of credit rationing via inter-firm credit relationships. Results suggest a negative effect of credit rationing on firms' productivity, while a positive relationship exists between short-run localization economies and productivity. It emerges that location in an industrially concentrated area reduces firms' investment-to-cash flow sensitivity, and that it positively moderates the negative effect of credit rationing on productivity. Moreover, the positive moderation effect seems to be increasing in the density of the local banking system. Total factor productivityCredit rationing Localization economiesGANAU R. La productivité, les contraintes de crédit et le rôle des économies de localisation à court terme: des résultats micro-économiques provenant de l'Italie, Regional Studies. Cet article cherche à examiner si, oui ou non, la productivité des entreprises de fabrication italiennes est touchée par les contraintes de crédit, et si les économies de localisation à court terme favorisent la productivité à la fois directement et indirectement, modérant ainsi les effets négatifs du rationnement du crédit par moyen des relations de crédit interentreprises. Les résultats laissent supposer que le rationnement du crédit exerce un effet négatif sur la productivité des entreprises, alors qu'il existe une relation positive entre les économies de localisation à court terme et la productivité. Il s'avère que la localisation d'une entreprise dans une zone fortement industrialisée réduit la sensibilité de son investissement au cash-flow, et qu'il modère de façon positive l'effet négatif du rationnement du crédit sur la productivité. En outre, l'effet de modération positif semble augmenter, vu la densité du système bancaire local. Productivité totale des facteurs Rationnement du crédit Économies de localisation GANAU R. Produktivität, Kreditbeschränkungen und die Rolle von kurzfristigen Lokalisationsökonomien: Mikrobelege aus Italien, Regional Studies. In diesem Beitrag wird untersucht, ob die Produktivität von italienischen produzierenden Betrieben durch Kreditbeschränkungen beeinflusst wird und ob kurzfristige Lokalisationsökonomien die Produktivität sowohl unmittelbar als auch mittelbar fördern, indem sie die negativen Auswirkungen einer Kreditrationierung mithilfe von Kreditbeziehungen zwischen Firmen abschwächen. Die Ergebnisse lassen auf eine negative Auswirkung der Kreditrationierung auf die Produktivität der Firmen schließen, während zwischen kurzfristigen Lokalisationsökonomien und der Produktivität eine positive Beziehung besteht. Es stellt sich heraus, dass der Standort in einer industriell konzentrierten Gegend die Investitionen-Cashflow-Sensibilität der ...

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Section: Localization Economies and Productivitymentioning

confidence: 97%

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Ganau

2015

Regional Studies

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“…DEFINITIONS: Both terminologies concern the relationships of a business and are used interchangeably in previous literature (Chipika & Wilson, 2006;Leroy, 2012;Premaratne, 2002;Sawyerr et al, 2003;Scalera & Zazzaro, 2009, Zain & Ng, 2006. Network refers to a set of elements or members that are connected (Casson & Giusta, 2007).…”

Section: Network and Networking: Definitions And Theoriesmentioning

confidence: 99%

“…(Nieman, 2006) Networks can be defined as patterned, beneficial relationships between individuals, groups or organizations that are used to secure critical economic and non-economic resources needed to start and manage a business. (Scalera & Zazzaro, 2009) Networking can be formal and informal links that are created to allow its members to have cost-effective economic transactions. (Halinen & Törnroos, 1998) Networks are structures of exchange relationships among business actors, firms as well as individuals -structures which emerge, evolve and dissolve over time in a continuous and interactive process.…”

Section: Network and Networking: Definitions And Theoriesmentioning

confidence: 99%

Role of Technology Transfer, Innovation Strategy and Network: A Conceptual Model of Innovation Network to Facilitate the Internationalization Process of SMEs

Mancini¹,

González²

2021

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“…Local governments can also play an indirect role in supporting firms' productivity improvements by alleviating the negative returns of credit constraints. “Good” formal institutions can promote a “safe” and stable local business environment, where increased reputation and trust among business partners (suppliers and customers) facilitate repeated production transactions and, through these, the emergence of interfirm financial relationships (Cainelli, Montresor, & Vittucci Marzetti, 2012; Dei Ottati, 1994; Scalera & Zazzaro, 2011). Trade credit—that can materialize through better contracts or delayed payments—represents a key alternative source of financing for firms to alleviate credit constraints.…”

Section: Theoretical Framework and Research Hypothesesmentioning

confidence: 99%

Credit constraints, labor productivity, and the role of regional institutions: Evidence from manufacturing firms in Europe

Rodríguez‐Pose

Ganau

Maslauskaite

et al. 2020

Journal of Regional Science

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investment-to-cash flow sensitivity-and firmlabor productivity-during the period 2009-2016, using a sample of 22,380 manufacturing firms from 11 European countries. It also assesses how regional institutional quality affects productivity at the level of the firm both directly and indirectly. The empirical results highlight that credit rationing is rife and represents a serious barrier for improvements in firm-level productivity and that this effect is far greater for micro and small than for larger firms. Moreover, high-quality regional institutions foster productivity and help mitigate the negative credit constraints-labor productivity relationship that limits the economic performance of European firms. Dealing with the European productivity conundrum thus requires greater attention to existing credit constraints for micro and small firms, although in many areas of Europe access to credit will become more effective if institutional quality is improved.

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Do Inter-firm Networks Make Access to Finance Easier? Issues and Empirical Evidence

Cited by 7 publications

References 98 publications

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Productivity, Credit Constraints and the Role of Short-Run Localization Economies: Micro-Evidence from Italy

Role of Technology Transfer, Innovation Strategy and Network: A Conceptual Model of Innovation Network to Facilitate the Internationalization Process of SMEs

Credit constraints, labor productivity, and the role of regional institutions: Evidence from manufacturing firms in Europe

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