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Not all firms are created equal: SMEs and vocational training in the UK, Italy, and Germany

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  • Benassi, Chiara
  • Durazzi, Niccolo
  • Fortwengel, Johann

Abstract

Why do skill formation systems put SMEs at greater disadvantage in some countries than others vis-à-vis large employers? By comparing vocational education and training (VET) institutions and their differential effect on firms of different sizes across three countries (UK, Italy, and Germany), we show that the design of VET has profound implications for shaping the ability of SMEs to use institutions as resources. In particular, quasi-market institutions in the UK amplify SMEs' disadvantage, while non-market coordinating institutions in Italy and Germany narrow the gap between SMEs and large employers. By unpacking the comparative disadvantage of SMEs, we offer important nuances to the argument that institutions help firms coordinate their business activities in different varieties of capitalism.

Suggested Citation

  • Benassi, Chiara & Durazzi, Niccolo & Fortwengel, Johann, 2020. "Not all firms are created equal: SMEs and vocational training in the UK, Italy, and Germany," MPIfG Discussion Paper 20/4, Max Planck Institute for the Study of Societies.
    • Handle: RePEc:zbw:mpifgd:204
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    References listed on IDEAS

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    1. Howard Gospel & Paul Ryan & Hilary Steedman, 1998. "Apprenticeship: A Strategy For Growth," CEP Reports 11, Centre for Economic Performance, LSE.
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    4. Fortwengel, Johann & Jackson, Gregory, 2016. "Legitimizing the apprenticeship practice in a distant environment: Institutional entrepreneurship through inter-organizational networks," Journal of World Business, Elsevier, vol. 51(6), pages 895-909.
    5. Patrick Emmenegger & Lina Seitzl, 2019. "Collective Action, Business Cleavages and the Politics of Control: Segmentalism in the Swiss Skill Formation System," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 576-598, September.
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    7. Paul Edwards & Monder Ram, 2006. "Surviving on the Margins of the Economy: Working Relationships in Small, Low‐Wage Firms," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 895-916, June.
    8. Thelen,Kathleen, 2004. "How Institutions Evolve," Cambridge Books, Cambridge University Press, number 9780521837682, January.
    9. Finegold, David & Soskice, David, 1988. "The Failure of Training in Britain: Analysis and Prescription," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 4(3), pages 21-53, Autumn.
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    Cited by:

    1. Niccolo Durazzi, 2023. "Engineering the expansion of higher education: High skills, advanced manufacturing, and the knowledge economy," Regulation & Governance, John Wiley & Sons, vol. 17(1), pages 121-141, January.
    2. Melanie Simms, 2024. "The dynamics shaping experiences and prospects of employer coordination in a Liberal Market Economy: The case of Scotland," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(3), pages 606-628, August.

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