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Growth of Firms in a Fragmented Cultural Industry: Italian Commercial Art Galleries’ Competitive Strategies

Author

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  • Donatella Depperu

    (Department of Economic and Business Management Sciences, Università Cattolica del Sacro Cuore, 20123 Milano, Italy)

  • Giacomo Magnani

    (Department of Economic and Business Management Sciences, Università Cattolica del Sacro Cuore, 20123 Milano, Italy)

  • Lisa Crosato

    (Economics Department, Università Ca’ Foscari di Venezia, Dorsoduro 3246, 30123 Venice, Italy)

  • Caterina Liberati

    (Department of Economics, Management and Statistics (DEMS), Università degli Studi Milano Bicocca, 20126 Milano, Italy)

Abstract

The growth of cultural firms is important in developing local economies, enhancing employment, and improving urban sustainability, but it is difficult to achieve in fragmented industries that are populated by the smallest firms and offer a particularly unfavorable context for growth. The study takes a contingency perspective and contributes to both the literature on business strategy in fragmented industries and that on the growth of small and medium-sized enterprises (SMEs) by identifying the strategies implemented in a fragmented cultural industry, determining which of them are associated with a firm’s expected growth, and finding the few firm-specific factors that are associated with growth. It also complements the extant literature on art galleries by looking at them from the understudied strategic perspective. Suggestions for practitioners and policy makers are included.

Suggested Citation

  • Donatella Depperu & Giacomo Magnani & Lisa Crosato & Caterina Liberati, 2021. "Growth of Firms in a Fragmented Cultural Industry: Italian Commercial Art Galleries’ Competitive Strategies," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5057-:d:547233
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