From SMEs to Industrial Districts in the Process of Internationalisation: Theory and Evidence

Abstract

Following the approach that emphasises the existence of a continuum of forms in firms’ international expansion, ranging from exports of goods and services to foreign direct investment, many studies showed that Italian small and medium-size enterprises (SMEs) have recently been prone to international involvement, but only in the simplest form of exporting. The absence of a more complex internationalisation strategy has been explained with the existence of numerous obstacles of technological, informative and financial nature. The aim of this paper is to analyse the hypothesis that inter-firm relationships in the form of a group of firms or of an “industrial district (ID)” may enhance the internationalisation of SMEs, especially in developing countries. A simple theoretical model of an ID is presented. Then, the hypothesis of the internationalisation of the ID driven by a “leader firm” is studied. In our model, co-operation with the developing country’s firms may ease the productive undertaking in the developing country. To the aim of preliminary testing this hypothesis in the social and economic context of Latin America, we analysed the experience of groups of SMEs and of “quasi-IDs” in some countries (Argentina, Brazil, Mexico), with the perspective of future co-operation with the Italian IDs, and further international expansion.

Already published in: van Dijk M.P. and Rabellotti R. (eds.), Enterprise Clusters and Networks in Developing Countries, EADI Book Series 20, London: Frank Cass, 1997.