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Location, Internationalization and Performance of Firms in Italy: a Multilevel Approach

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Abstract

Competition is increasingly crossing borders. However, location still matters: the most successful competitors in an industry often cluster in the same geographic areas and companies use the advantages of location to compete at a global level. When competing across borders, firms can coordinate among different activities in a variety of ways to harness network advantages. This paper analyses how Italian firms’ performance, proxied by their propensity to export, depends both on geographical and institutional context and on individual characteristics. Using a multilevel model, we estimate and distinguish the effect of individual (firm level) and context variables (province level) on the performance of internationalized Italian firms.

Suggested Citation

  • Giorgia Giovannetti & Giorgio Ricchiuti & Margherita Velucchi, 2009. "Location, Internationalization and Performance of Firms in Italy: a Multilevel Approach," Working Papers - Economics wp2009_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2009_09.rdf
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    1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
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    3. Thierry Mayer & Gianmarco Ottaviano, 2008. "The Happy Few: The Internationalisation of European Firms," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 43(3), pages 135-148, May.
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    5. Maas, Cora J. M. & Hox, J.J.Joop J., 2004. "The influence of violations of assumptions on multilevel parameter estimates and their standard errors," Computational Statistics & Data Analysis, Elsevier, vol. 46(3), pages 427-440, June.
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    Cited by:

    1. A. Volkova I. & I. Karachev A. & А. Волкова И. & И. Карачев А., 2016. "Факторы Роста Экспортного Потенциала Малого Инновационного Предприятия // Export Potential Growth Factors For A Small Innovative Enterprise," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 20(6), pages 31-38.
    2. Giovannetti, Giorgia & Marvasi, Enrico, 2016. "Food exporters in global value chains: Evidence from Italy," Food Policy, Elsevier, vol. 59(C), pages 110-125.
    3. Cugno, Monica & Castagnoli, Rebecca & Büchi, Giacomo & Pini, Marco, 2022. "Industry 4.0 and production recovery in the covid era," Technovation, Elsevier, vol. 114(C).
    4. Elena Sapir & Igor Karachev & Mingzhu Zhang, 2016. "Russian Pharmaceutical Companies Export Potential in Emerging Regional Clusters," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1194-1204.
    5. Giorgia Giovannetti & Enrico Marvasi & Marco Sanfilippo, 2015. "Supply chains and the internationalization of small firms," Small Business Economics, Springer, vol. 44(4), pages 845-865, April.
    6. Eleonora Bertoni & Giorgio Ricchiuti, 2017. "A Multilevel Analysis of Unemployment in Egypt," LABOUR, CEIS, vol. 31(4), pages 494-514, December.
    7. Ayadi, Rym & Giovannetti, Giorgia & Marvasi, Enrico & Zaki, Chahir, 2024. "Trade networks and the productivity of MENA firms in global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 10-23.
    8. Pietro de Matteis & Filomena Pietrovito & Alberto Franco Pozzolo, 2016. "Determinants of exports: firm heterogeneity and local context," Questioni di Economia e Finanza (Occasional Papers) 352, Bank of Italy, Economic Research and International Relations Area.
    9. Mirko Menghini, 2015. "Le imprese potenzialmente esportatrici," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(2), pages 53-64.
    10. Sapir, Ye. V. & Karachev, I. A. & Zhang, M., 2016. "Export Potential of Russian Pharmaceutical Companies in the Emerging Regional Clusters," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(4), pages 441-449.
    11. Pietro De Ponti & Valeria Gattai, 2022. "Family Firms and Input Procurement: Firm-Level Evidence from Italy," Working Papers 499, University of Milano-Bicocca, Department of Economics, revised Jun 2022.
    12. Mohamed Amara, 2023. "Agglomeration and firm performance in times of economic turmoil: Evidence from Tunisian firm‐level data," Growth and Change, Wiley Blackwell, vol. 54(2), pages 446-481, June.
    13. Pietro Ponti & Valeria Gattai & Piergiovanna Natale, 2023. "Grossman–Hart–Moore Goes to Italy: Rethinking the Boundaries of the Firm," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 907-941, November.
    14. Antonia Mercedes García-Cabrera & María Gracia García-Soto & Sonia María Suárez-Ortega, 2017. "Macro-level spillovers and micro-level capabilities as antecedents of young SMEs’ propensity to export and to become a born global," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1199-1220, December.
    15. Anna Ferragina & Fernanda Mazzotta, 2015. "Agglomeration economies in Italy: impact on heterogeneous firms’ exit in a multilevel framework," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 395-440, December.
    16. Calabrese, Giuseppe Giulio & Manello, Alessandro, 2018. "Firm internationalization and performance: Evidence for designing policies," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1221-1242.
    17. Hazem,Nada & Zaki,Chahir, 2025. "Environmental Stringency and Firms’ Participation in Global Value Chains : Evidence for MENA Countries," Policy Research Working Paper Series 11161, The World Bank.
    18. Giorgia Giovannetti & Enrico Marvasi & Marco Sanfilippo, 2013. "Supply Chains and the Internalization of SMEs: Evidence from Italy," Working Papers - Economics wp2013_30.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    19. De Masi, G. & Giovannetti, G. & Ricchiuti, G., 2013. "Network analysis to detect common strategies in Italian foreign direct investment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(5), pages 1202-1214.

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    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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