IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v14y2002i1p31-47.html
   My bibliography  Save this article

Explaining business groups started by habitual entrepreneurs in the Italian manufacturing sector

Author

Listed:
  • Donato Iacobucci

Abstract

The technical (plant) and legal (company) units normally used in official statistics do not take into consideration the phenomenon of business groups: i.e. sets of companies controlled by the same entrepreneur. The main aims of this paper are to assess the presence of such groups in the Italian small firm manufacturing sector and to examine the causes of their formation. Two data sets are used: the first is a representative sample of Italian manufacturing firms while the second is a small sample of groups localized in the Region of the Marches. They show that groups are widely present among small and medium-sized enterprises (SMEs). Starting from the premise that the group is the result of the expansion of activities controlled by the same entrepreneur, this paper reports a first attempt to discriminate among three alternative propositions regarding the causes of such growth and the reasons for the adoption of the group form: (1) as the result of the firm's growth policy; (2) as the result of entrepreneurial dynamics; and (3) as the result of the capital accumulation process on the part of the entrepreneur or his/her family. The empirical analysis on the whole favours the first hypothesis.

Suggested Citation

  • Donato Iacobucci, 2002. "Explaining business groups started by habitual entrepreneurs in the Italian manufacturing sector," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(1), pages 31-47, January.
    • Handle: RePEc:taf:entreg:v:14:y:2002:i:1:p:31-47
    DOI: 10.1080/08985620110096636
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08985620110096636
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08985620110096636?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    2. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    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. 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.
    2. Enrico Guzzini & Donato Iacobucci, 2014. "Ownership as R&D incentive in business groups," Small Business Economics, Springer, vol. 43(1), pages 119-135, June.
    3. Polina K. Kirilova, 2015. "Assessing the Creditworthiness of Patchwork Portfolio Entrepreneurs in Emerging Markets: an Investment Theory-Based Approach," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 53-65, March.
    4. Donato Iacobucci & Peter Rosa, 2010. "The Growth of Business Groups by Habitual Entrepreneurs: The Role of Entrepreneurial Teams," Entrepreneurship Theory and Practice, , vol. 34(2), pages 351-377, March.
    5. Cainelli, Giulio & Iacobucci, Donato, 2006. "The Role of Agglomeration and Technology in Shaping Firm Strategy and Organization," Knowledge, Technology, Human Capital Working Papers 12091, Fondazione Eni Enrico Mattei (FEEM).
    6. Enrico Guzzini & Donato Iacobucci, 2012. "Firm size and unrelated diversification. An empirical test on the ‘survivalist hypothesis’," Working Papers 1207, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    7. Vivien Lefebvre, 2023. "Business group affiliation in resource-scarce locations," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 121-140, September.
    8. Allan Discua Cruz & Carole Howorth & Eleanor Hamilton, 2013. "Intrafamily Entrepreneurship: The Formation and Membership of Family Entrepreneurial Teams," Entrepreneurship Theory and Practice, , vol. 37(1), pages 17-46, January.
    9. Christian Lechner & Christophe Leyronas, 2009. "Small–Business Group Formation as an Entrepreneurial Development Model," Entrepreneurship Theory and Practice, , vol. 33(3), pages 645-667, May.
    10. Giulio Cainelli & Donato Iacobucci, 2006. "The Role of Agglomeration and Technology in Shaping Firm's Strategy and Organization," ERSA conference papers ersa06p286, European Regional Science Association.
    11. Christian Lechner & Florian Kirschenhofer & Michael Dowling, 2016. "The influence of social capital on opportunity emergence and exploitation: a comparison of portfolio and serial entrepreneurs," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-23, December.
    12. Rodgers, Waymond & Degbey, William Y. & Söderbom, Arne & Leijon, Svante, 2022. "Leveraging international R&D teams of portfolio entrepreneurs and management controllers to innovate: Implications of algorithmic decision-making," Journal of Business Research, Elsevier, vol. 140(C), pages 232-244.
    13. Eduardsen, Jonas & Marinova, Svetla Trifonova & González-Loureiro, Miguel & Vlačić, Božidar, 2022. "Business group affiliation and SMEs’ international sales intensity and diversification: A multi-country study," International Business Review, Elsevier, vol. 31(5).
    14. Vivien Lefebvre, 2023. "Human resources slack and profitability: SMEs, large firms, and the role of business group affiliation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 611-637, September.

    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. Alessandra Colombelli & Francesco Quatraro, 2013. "New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions," Working Papers hal-00858989, HAL.
    2. Florian Noseleit, 2013. "Entrepreneurship, structural change, and economic growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 735-766, September.
    3. Alessandra Colombelli & Gianluca Orsatti & Francesco Quatraro, 2021. "Local knowledge composition and the emergence of entrepreneurial activities across industries: evidence from Italian NUTS-3 regions," Small Business Economics, Springer, vol. 56(2), pages 613-635, February.
    4. Enrico Santarelli & Hien Thu Tran, 2016. "Diversification strategies and firm performance in Vietnam," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(1), pages 31-68, January.
    5. Colombelli, Alessandra & Quatraro, Francesco, 2018. "New firm formation and regional knowledge production modes: Italian evidence," Research Policy, Elsevier, vol. 47(1), pages 139-157.
    6. Silvia Rocchetta & Andrea Mina, 2019. "Technological coherence and the adaptive resilience of regional economies," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1421-1434, October.
    7. E. Santarelli & H. T. Tran, 2013. "Diversification Strategies and Firm Performance: A Sample Selection Approach," Working Papers wp896, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Radislav Jovovic, 2005. "The Distincs Differences Between Old And Emerging Economy," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 1(1), pages 139-150.
    9. David Audretsch & Roy Thurik, 0000. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute.
    10. Audretsch, D.B. & Thurik, A.R., 2000. "What's New About the New Economy? Sources of growth in the managed and entrepreneurial economies," ERIM Report Series Research in Management ERS-2000-45-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. David Audretsch & Roy Thurik, 2004. "A Model of the Entrepreneurial Economy," Papers on Entrepreneurship, Growth and Public Policy 2004-12, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    12. Roy Thurik, 2003. "Entrepreneurship and Unemployment in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(3), pages 264-290, August.
    13. Henrekson, Magnus & Johansson, Dan, 2010. "Firm Growth, Institutions and Structural Transformation," Ratio Working Papers 150, The Ratio Institute.
    14. Konon, Alexander & Fritsch, Michael & Kritikos, Alexander S., 2018. "Business cycles and start-ups across industries: An empirical analysis of German regions," Journal of Business Venturing, Elsevier, vol. 33(6), pages 742-761.
    15. Talat Mahmood, 1997. "Survival of Newly Founded Businesses: A Log-Logistic Model Approach," CIG Working Papers FS IV 97-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    16. Lars Håkanson, 2005. "Epistemic Communities and Cluster Dynamics: On the Role of Knowledge in Industrial Districts," Industry and Innovation, Taylor & Francis Journals, vol. 12(4), pages 433-463.
    17. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    18. Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.
    19. Daniel Fackler & Claus Schnabel & Joachim Wagner, 2013. "Establishment exits in Germany: the role of size and age," Small Business Economics, Springer, vol. 41(3), pages 683-700, October.
    20. Roger Hayter & Klaus Edenhoffer, 2016. "Evolutionary Geography of a Mature Resource Sector: Shakeouts and Shakeins in British Columbia's Forest Industries 1980 to 2008," Growth and Change, Wiley Blackwell, vol. 47(4), pages 497-519, December.

    More about this item

    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:taf:entreg:v:14:y:2002:i:1:p:31-47. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    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.