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The territory effect on the international competitiveness and on the social sustainability of the economy: An analysis on the Italian manufacturing smes

  • Abstract

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Keywords: Territorial Capital; Manufacturing SMEs; Export; International Competitiveness; Family Business; Social Capital.

The aim of this paper is to test if there is a «territory effect», measured by the enterprises which give value to the local production culture, on the firms' internationalisation, using a probit model on a dataset of 1,300 small- and medium-sized enterprises. We find that the enhancement of the production culture of the local territory increases the probability that export raises; and if it works in wide and transversal multi-purpose networks the probability to export increases too. We tested also the social dimension of the territorial factor. The results suggest that the firms which give value to the local production culture are stakeholder driven instead of profit driven (namely which maximize the profit), family businesses, and they prefer to raise the factories in Italy rather than abroad. Finally, policy implications are discussed.

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