Same same, but different: the heterogeneous nature of subcontractors inside Italian industrial districts

Jacopo Canello (), Paolo Pavone and Saverio Testa

Entrepreneurship & Regional Development, 2017, vol. 29, issue 7-8, 791-813

Abstract: This paper investigates the structural features and performances of small firms interacting inside regional production networks, with particular regard to Italian industrial districts specialized in footwear production. A typological classification of the various participants in the supply chains is introduced and used to interpret the performances of the main groups identified, focusing on a five-year period following the 2008 financial crisis. The empirical investigation is conducted using an innovative archive containing detailed information on a large share of Italian micro and small firms that are generally excluded from most firm-level databases. The results show that, inside industrial districts, subcontractors are best described as a set of heterogeneous agents with distinct identities and idiosyncratic approaches to the market. The most widely diffused type of supplier still retains most of the structural characteristics traditionally described by the literature. However, industrial districts are also characterized by the presence of advanced forms of subcontractors whose organizational structure differs from that of a traditional supplier: in fact, such producers share more commonalities with end product firms. The analysis of the performances indicates that advanced subcontractors displayed better results during the period 2008–2012, while traditional suppliers tend to occupy a peripheral position in most subcontracting networks.

Date: 2017
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DOI: 10.1080/08985626.2017.1350886

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