The Internationalization of Production by Italian Industrial Districts' Firms: Structural and Behavioural Determinants

Abstract

Mariotti S., Mutinelli M. and Piscitello L. The internationalization of production by Italian industrial districts' firms: structural and behavioural determinants, Regional Studies. The paper argues that structural and behavioural determinants combine to influence internationalization of production through foreign direct investment (FDI) by industrial districts' firms. As far as the former, leadership effects, represented by the presence of large firms within the district, and Porterian effects, denoted by the intensity of domestic rivalry, positively influence the likelihood that district firms will start internationalize through FDI. Moreover, spillovers induced by the presence of foreign-owned multinational corporations positively impact on the district's degree of internationalization, provided it has already autonomously developed the ability to grow internationally. As far as behavioural features, previous export relationships increase the district firms' likelihood of undertaking FDI, while innovative capacity joins and strengthens internationalization processes already started.

Mariotti S., Mutinelli M. et Piscitello L. L'internationalisation de la production par les entreprises situées dans les districts industriels italiens. Les déterminants structurels et de comportement. Regional Studies. Cet article affirme que les déterminants structurels et de comportement se combinent pour influer sur l'internationalisation de la production au moyen de l'IDE des entreprises situées dans les districts industriels. En ce qui concerne ces déterminants-là, des effets d'entraînement, representés par la présence des grandes entreprises au sein du district, et des effets du type Porter, représentés par l'ampleur de la rivalité intérieure, influent de façon positive sur la possibilité que les entreprises situées dans les districts aillent s'internationaliser au moyen de l'IDE. Qui plus est, les retombées dues à la présence des sociétés multinationales à capital majoritaire étranger influent de façon positive sur le taux d'internationalisation du district, pourvu que ce dernier ait déjà développée de manière autonome la capacité de s'agrandir sur le plan international. Quant aux déterminants de comportement, des rapports d'exportation antérieurs accroissent la probabilité que les entreprises du district font de l'IDE, alors que la capacité innovatrice se réunit aux processus d'internationalisation en vigueur et les renforcent.

Districts industriels Internationalisation de la production Sociétés multinationales Retombées

Mariotti S., Mutinelli M. und Piscitello L. Die Internationalisierung der Produktion von Firmen in italienischen Industriebezirken: Strukturelle und verhaltensspezifische Determinanten, Regional Studies. In diesem Beitrag wird die These aufgestellt, dass die strukturellen und verhaltensspezifischen Determinanten gemeinsam einen Einfluss auf die Internationalisierung der Produktion durch die ausländischen Direktinvestitionen von Firmen des Industriebezirks ausüben. Was die strukturellen Determinanten anbelangt, so wirken sich die Führungseffekte (repräsentiert durch die Präsenz größerer Firmen im Bezirk) sowie die Porter-Effekte (gekennzeichnet durch die Intensität der einheimischen Rivalität) positiv auf die Wahrscheinlichkeit aus, dass Firmen im Bezirk durch ausländische Direktinvestitionen mit einer Internationalisierung beginnen. Darüber hinaus übt die Wissensübertragung, die durch die Präsenz eines multinationalen Konzerns in ausländischem Eigentum herbeigeführt wird, einen positiven Einfluss auf das Ausmaß der Internationalisierung im Bezirk aus, sofern der Bezirk die Fähigkeit zum internationalen Wachstum bereits auf autonome Weise entwickelt hat. Was die verhaltensspezifischen Determinanten anbelangt, erhöht sich durch Exportverhältnisse der Vergangenheit die Wahrscheinlichkeit, dass die Firmen ausländische Direktinvestitionen vornehmen, während die innovative Kapazität den bereits begonnenen Internationalisierungsprozess begleitet und verstärkt.

Industriebezirke Internationalisierung der Produktion Multinationale Konzerne Wissensübertragung

Mariotti S., Mutinelli M. y Piscitello L. La internacionalización de la producción de empresas industriales en comarcas italianas, Regional Studies. Determinantes estructurales y de comportamiento En este artículo sostenemos que los determinantes estructurales y de comportamiento se combinan para influir en la internacionalización de la producción a través de la Inversión Directa Extranjera (IDE) en las empresas de comarcas industriales. En lo que respecta a lo anterior, los efectos de liderazgo, representados por la presencia de grandes empresas dentro de la comarca, y los efectos porterianos, marcados por la intensidad de la competencia nacional, influyen positivamente en la probabilidad de que las empresas comarcales empiecen a internacionalizarse a través de la IDE. Además, los desbordamientos provocados por la presencia de empresas multinacionales de propiedad extranjera tienen un efecto positivo en el grado de internacionalización comarcal, siempre y cuando ya haya desarrollado de modo autónomo la capacidad de crecer a nivel internacional. En lo que respecta a las características de comportamiento, las relaciones de exportación previas aumentan la probabilidad de las empresas comarcales a participar en la IDE a la vez que la capacidad innovadora incorpora y refuerza los procesos de internacionalización que ya habían comenzado.

Comarcas industriales Internacionalización de la producción Corporaciones multinacionales Desbordamientos

Keywords:

• Industrial districts
• Internationalization of production
• Multinational corporations
• Spillovers

Keywords:

• F230
• R110
• R150

Notes

1. Although in the recent literature the term cluster has increasingly gained favour, ‘the concept has now acquired such a variety of uses, connotations and meanings that is has, in many respects, become a chaotic concept’ (for a critical review on the use of the concept of cluster, see Martin and Sunley, 2003, pp. 9–10). For this reason, we prefer the term industrial district, for which a much more largely shared Marshallian definition does exist (Becattini, 2004).

2. Specifically, FDI undertaken for market-seeking purposes, and to replicate the parent company's activities abroad, have export substitution effects. The linkage is more complex when FDI is mainly resource-seeking, as it often generates both intra- and inter-industry flows of exports and imports.

3. The rationale is that in SME dominated economies (like Italy), the size of firms prevents or reduces the possibility to count on firm-based international growth strategies. Therefore, a solution is to push forward the internationalization of clusters: domestic firms could in that way pursue collective internationalization processes, strengthening their internal relationships and implementing new international linkages.

4. Such a classification has unquestionable advantages, mainly related to the fact that its territorial exhaustiveness and identification of precisely circumscribed spaces enables analysis to be conducted on quantitative indicators (population, firms, employees, etc.) that are homogeneous across all districts. The other available classifications (for example, IPI, 2002) rely on heterogeneous, and often subjective, criteria.

5. Specifically, the authors found inappropriate keeping classifications that are too broad. In particular, in cases like mechanicals, several specializations might be easily disentangled (processing of metals, metal products, machinery and equipments, electronics and electrical apparatus). This paper acknowledges that such a method might miss some fringe segments along the production chain (for example when a district specialized in textiles has developed competencies also in textile machinery). However, the issue remains unsolved even in the (broader) ISTAT classification.

6. It should be pointed out that the phenomenon is evolving rapidly. Moreover, as in all diffusive processes, reference to the time period in which both sub-sets (internationalized and non-internationalized districts) are of ample size is important for study of the phenomenon's determinants.

7. There were two reasons for referring only to majority-owned foreign affiliates: (1) the volatile nature of minority-owned ones; (2) without adopting arbitrary procedures, it is not possible to apply a single measure to employees in majority shareholdings and the employees of foreign activities which may be of substantial size but in which there are minority shareholdings of very small proportions.

8. Specifically, the EU Commission Recommendation of 6 May 2003 put forward the definition of micro, small and medium-sized enterprises (SMEs) as being made up of enterprises which employ fewer than 250 persons.

9. For example, if the district specializes in textiles/clothing, consideration was made of both the foreign multinationals undertaking production in the above-mentioned manufacturing sector and the multinationals explicitly connected with it: and affiliates with commercial activities concerning textiles and clothing, affiliates furnishing services connected with them (e.g. consultancy, logistics, dedicated computer and software).

10. These data were made available by the CRENoS (Centro Ricerche Economiche Nord Sud). The authors wish to thank Stefano Usai and Barbara Dettori, in particular, for their valuable assistance.

11. It is worth observing that such an indicator is available at the NUTS 3 level (corresponding to the Italian provinces). The Nomenclature of Territorial Units for Statistics (NUTS) classification is based on the institutional divisions currently in force in the Member States, according to the tasks allocated to territorial communities, to the sizes of population necessary to carry out these tasks efficiently and economically, and to historical, cultural, and other factors.

12. It is worth observing that machinery and equipments, which have been classified as Advanced, enjoyed also comparative advantages.

13. If the correlation between the residuals in the first and second stage regressions in the sample selection model is not significantly different from zero, sample selection does not bias the coefficients in the regression of the degree of internationalization. Table 6 indicates that this correlation (i.e. the Inverse Mill's ratio) is not significant from zero for the full sample of firms, while it is not for the sub-sample of the smaller firms dwelling in the districts. However, the authors retain the sample selection approach for the remainder of the analysis also for the full sample, as a cautionary measure.

14. It might be not out of place here to observe that the study tried alternative proxies for experience (e.g. the age of the first FDI). However, none of these revealed anything of significance.