IDEAS home Printed from https://ideas.repec.org/p/pad/wpaper/0216.html
   My bibliography  Save this paper

Inter-Firm Networks and Firm Performance: The Case of Italy

Author

Listed:
  • Chiara Burlina

Abstract

This study investigates a particular type of network, the inter-firm network (IFN), and its impact on performances of Italian firms between 2010-2015. After revising the literature on alliances and networks for what concerns the geographical and industrial dimension, I focus my attention on networks’ performance and innovation propensity. The empirical analysis, based on a sample of about 4,000 firms, is divided in two parts: firstly, applying a “differencein- difference” technique, is tested the impact of being in an IFN; secondly, focusing on year 2013, are measured the different effects of IFN characteristics. Results demonstrate that belonging to an IFN has a positive impact on firms’ growth. Moreover, industry heterogeneity of members and internationalisation scope (rather than innovation) turn out to be the main factors increasing firm’s profitability and economic growth.

Suggested Citation

  • Chiara Burlina, 2018. "Inter-Firm Networks and Firm Performance: The Case of Italy," "Marco Fanno" Working Papers 0216, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0216
    as

    Download full text from publisher

    File URL: https://economia.unipd.it/sites/economia.unipd.it/files/20180216.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony Goerzen & Paul W. Beamish, 2005. "The effect of alliance network diversity on multinational enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 26(4), pages 333-354, April.
    2. J. Carlos Jarillo, 1988. "On strategic networks," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 31-41, January.
    3. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    4. M. S. Gertler & Y. M. Levitte, 2005. "Local Nodes in Global Networks: The Geography of Knowledge Flows in Biotechnology Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 487-507.
    5. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    6. Bernard Baudry & Virgile Chassagnon, 2012. "The vertical network organization as a specific governance structure: what are the challenges for incomplete contracts theories and what are the theoretical implications for the boundaries of the (hub," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 285-303, May.
    7. Geoffrey Hodgson, 2002. "The Legal Nature of the Firm and the Myth of the Firm-Market Hybrid," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 37-60.
    8. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    9. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    10. Pierre-Alexandre Balland & Mathijs De Vaan & Ron Boschma, 2013. "The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 741-765, September.
    11. Giulio Cainelli & Donato Iacobucci & Enrica Morganti, 2006. "Spatial agglomeration and business groups: New evidence from Italian industrial districts," Regional Studies, Taylor & Francis Journals, vol. 40(5), pages 507-518.
    12. Robert Huggins, 1998. "Local Business Co-operation and Training and Enterprise Councils: The Development of Inter-firm Networks," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 813-826.
    13. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    14. Giacomo Becattini & Marco Bellandi & Lisa De Propis (ed.), 2009. "A Handbook of Industrial Districts," Books, Edward Elgar Publishing, number 12736.
    15. Christian Lechner & Michael Dowling, 2003. "Firm networks: external relationships as sources for the growth and competitiveness of entrepreneurial firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(1), pages 1-26, January.
    16. Nicholas Charron & Lewis Dijkstra & Victor Lapuente, 2014. "Regional Governance Matters: Quality of Government within European Union Member States," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 68-90, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Corrado Ievoli & Angelo Belliggiano & Danilo Marandola & Giuseppe Pistacchio & Luca Romagnoli, 2019. "Network Contracts in the Italian agri-food industry: Determinants and spatial patterns," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(2), pages 275-306.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chiara Burlina, 2018. "L?effetto dei contratti di rete sulla performance d?impresa: il caso italiano," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 2018(1), pages 138-152.
    2. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    3. Dovev Lavie & Stewart R. Miller, 2008. "Alliance Portfolio Internationalization and Firm Performance," Organization Science, INFORMS, vol. 19(4), pages 623-646, August.
    4. Thakur-Wernz, Pooja & Cantwell, John & Samant, Shantala, 2019. "Impact of international entry choices on the nature and type of innovation: Evidence from emerging economy firms from the Indian bio-pharmaceutical industry," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    5. Driffield, Nigel & Love, James H. & Yang, Yong, 2016. "Reverse international knowledge transfer in the MNE: (Where) does affiliate performance boost parent performance?," Research Policy, Elsevier, vol. 45(2), pages 491-506.
    6. Chassagnon, Virgile, 2014. "Consummate cooperation in the network-firm: Theoretical insights and empirical findings," European Management Journal, Elsevier, vol. 32(2), pages 260-274.
    7. Patrizia Pastore & Antonio Ricciardi & Silvia Tommaso, 2020. "Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1503-1535, December.
    8. Marina van Geenhuizen & Peter Nijkamp, 2011. "Knowledge Virtualization and Local Connectedness among Smart High-tech Companies," Tinbergen Institute Discussion Papers 11-119/3, Tinbergen Institute.
    9. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    10. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    11. Anthony Goerzen & Stephen Sapp & Andrew Delios, 2010. "Investor Response to Environmental Risk in Foreign Direct Investment," Management International Review, Springer, vol. 50(6), pages 683-708, December.
    12. Spyros Arvanitis & Florian Seliger & Tobias Stucki, 2013. "The Relative Importance of Human Resource Management Practices for a Firm's Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.
    13. Naqeeb Ur Rehman, 2017. "Self-selection and learning-by-exporting hypotheses: micro-level evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 133-160, April.
    14. Sheng-Syan Chen & Chia-Wei Huang & Chuan-Yang Hwang & Yanzhi Wang, 2022. "Voluntary disclosure and corporate innovation," Review of Quantitative Finance and Accounting, Springer, vol. 58(3), pages 1081-1115, April.
    15. Spyros Arvanitis & Florian Seliger & Tobias Stucki, 2016. "The relative importance of human resource management practices for innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(8), pages 769-800, November.
    16. Heinz Hollenstein & Tobias Stucki, 2012. "The 'New Firm Paradigm' and the Provision of Training: The Impact of ICT, Workplace Organization and Human Capital," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 148(IV), pages 557-595, December.
    17. Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009. "Innovation success of non-R&D-performers: substituting technology by management in SMEs," Small Business Economics, Springer, vol. 33(1), pages 35-58, June.
    18. Brada, Josef C. & Drabek, Zdenek & Mendez, Jose A. & Perez, M. Fabricio, 2019. "National levels of corruption and foreign direct investment," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 31-49.
    19. Spyros Arvanitis, 2009. "How do different motives for R&D cooperation affect firm performance?," KOF Working papers 09-233, KOF Swiss Economic Institute, ETH Zurich.
    20. J. Nils Foege & Erk P. Piening & Torsten-Oliver Salge, 2017. "Don’T Get Caught On The Wrong Foot: A Resource-Based Perspective On Imitation Threats In Innovation Partnerships," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-42, April.

    More about this item

    Keywords

    Inter-firm network; Alliances; Performance; Difference-in-Difference; Innovation.;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pad:wpaper:0216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Raffaele Dei Campielisi (email available below). General contact details of provider: https://edirc.repec.org/data/dspadit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.