Elisa Giacosa

The family variable in the French and Italian wine sector

Purpose – The purpose of this paper is to highlight the differences in terms of economic and financial performance, between family firms (FFs) and non-family firms (NFFs) in the wine sector in Italy and France, where this sector is one of the most representative national economic activities. Design/methodology/approach – This study is based on a sample of Italian and France companies operating in the wine sector. The sample, including medium and large firms, includes 288 FFs and 302 NFFs, for a total of 590 firms. Amadeus database represents the data source. According to Astrachan and Kolenko (1994), a firm is classified as a FF if family had to own over 50 per cent of the business in a private company or more than 10 per cent of a public company. Findings – This study confirms that the family variable is relevant to achieve good economic and financial performance, and endow firms with different features. In terms of economic performance, FFs both in Italy and France outperform in. terms of return on equi...

Exploring Voluntary External Disclosure of Intellectual Capital in Listed Companies: an Integrated Intellectual Capital Disclosure Conceptual Model

Purpose The purpose of this paper is to create a conceptual model that practically assists companies to produce an effective voluntary external intellectual capital disclosure (ICD) and valorises both the company’s and the stakeholders’ role. It illustrates the relationship among voluntary ICD mechanisms and it takes into consideration the feedback mechanism from external stakeholders. Design/methodology/approach Nielsen and Madsen’s (2009) study constitutes the framework of the conceptual model, as it refers to a “sender to receiver” model, which is particularly useful for the research. Findings An effective ICD may only be achieved through a combination of decisions taking into account each individual company’s needs and those of stakeholders’ ones. In addition, the dimensions on which the conceptual model is based are already in use in other widespread disclosure models, and this favours the company. Research limitations/implications Limitations concern design features, recipients and validity of the conceptual model. In terms of theoretical implications, the model emphasizes an “integrated ICD” approach; in addition, the model is based on some dimensions which characterize widespread and general communication models already in use. Practical implications First, this relates to the production of an effective ICD when considered as “one-way information”, from the company to the stakeholders. Second, this relates to the interaction between the company and its stakeholders, within a dyadic exchange. Originality/value The conceptual model is based on some dimensions which characterize widespread and general communication models already in use, which in the model are applied to ICD. Therefore, companies may favour making an ICD, as they are already confident and familiar with these dimensions.

Family Italian listed firms: Comparison in performances and identification of two main configurations

Purpose – The purpose of this study is to underscore the impact of the family variable on performance. The authors were interested in understanding whether the differences between Family Firms (FFs) and Non-Family Firms (NFFs), on the one hand, and between large FFs and medium-sized FFs, on the other, were reflected in the performance achieved. Design/methodology/approach – In this paper a sample of 80 industrial companies listed on the Italian Stock Market (FTSE MIB and STAR indexes) were considered, and mixed criteria to distinguish FFs and NFFs (Smyrnios-Romano et al., 1998) were used. The empirical method allowed the development of some research hypotheses by exploiting the Pearson correlation. Findings – There are two main categories of FFs, which correspond to two different strategic and organizational categories, namely, the FFs listed on the large capitalized companies index (FTSE MIB) and the FFs listed on the medium-capitalized companies index (STAR). Each kind of FFs (large FFs and medium-sized...

How to strengthen the business model of an Italian family food business

Purpose The purpose of this paper is to focus on how a medium-sized company operating in the food sector should strengthen its business model, thanks to a combination between tradition and innovation. Design/methodology/approach This research focuses on one case study. The subject of the case study under analysis is Golosita dal 1885, an internationally recognized fine food Italian company. Findings Golosita dal 1885 is characterized by a strong combination of tradition and innovation, both in products and processes. The company’s competitiveness is the result of a balanced management of innovation, in respect of the family’s values, thanks to the active presence of two family generations. Research limitations/implications This study is characterized for some limitations, related to the method and to the choice of a single case study. In terms of theoretical implications, the study emphasizes the importance of the link between the food sector and the region it is rooted in. Practical implications Practical implications relate to different groups of stakeholders: for owners and management, for investors, for organizations and institutions working on a territory promotion and in the tourism sector, and for politicians and local authorities. Originality/value The originality of the research is represented by a focusing on how a strategy based on an effective combination between tradition and innovation should increase the competitive advantage, especially in a mature sector – as the food one – characterized by the need to offer a differentiated and innovative range of products and services for overcoming the consumptions crisis.

Behavioral Agency Model: A Target-Oriented Approach for Executive Incentives

Recent empirical studies in Behavioral Agency Model (see Pepper and Gore, 2012) on executive compensations make evidence how the agent attitude to risk influences the subjectively perceived incentive value. The paper sets out a compensation schedule matching multiple goals: (1) aligning the incentives with the executive subjectively perceived fair and equitable compensation; (2) discouraging the executive excessive risk-taking; (3) providing an approach to calculate the certainty equivalent of the uncertain compensation. To hit the first goal we suggest to use the target-oriented decision approach (see Bordley and LiCalzi, 2000) able to guide the agent in eliciting her subjective value function through the assessment of the (uncertain) target to hit. The proposed approach is compatible with prospect theory (see Kahneman and Tversky, 1979). With reference to the second goal involving the problem on how prevent moral hazard phenomena, we suggest to insert an event-linked option. That warranty ties the compensation payment to the outgoing a set of given performance indicators taken as benchmarks. The third goal is achieved using the notion of actuarial zero-utility premium principle extended to prospect theory (see Kaluszka and Krzeszowiec, 2012, 2013). To explicit the agent subjective value function we suggest an interactive graphical method proposed by Goldstein and Rothschild (2014) based on the Distribution Builder (see Sharpe et al., 2000). Our approach generalizes the Pepper and Gore (2012, 2013) compensation formula and provides a normative foundation for constructing compensation schemes, which are coherent with Savage’s (1954) rationality axioms and prospect theory as well.

How the Business Model Could Increase the Competitiveness of a Luxury Company

The luxury business is one of the most important industries in many countries. In the recent years, it is affected by some paradigms (such as consumption crisis, democratization process, market globalization) that should be considered while defining the company business model. To overcome these paradigms, the business model has to be characterized by a set of factors which could increase the competitiveness of a luxury company. The objective of this research is to verify how the business model could increase the competitiveness of a luxury company. We used a qualitative approach; in particular, we considered large and medium-sized luxury companies which are internationally-recognized with highly innovative and entrepreneurial business approach over generations. The research identifies a series of business model’s characteristics for ensuring or increasing a long-term competitiveness, in terms of innovativeness, company’s assets and long-term vision. Key factors identified above should be applied together to understand better the phenomenon of innovative luxury business.

The Family Business Phenomenon as a Means for a Sustainable Business in the Clothing Luxury Business

The family business phenomenon represents the most widespread business model in the world, representing both a relevant source of growth, development and economic stability, and a social determinant. The family business phenomenon has an important role in the clothing fashion business, as a large number of the medium and large companies operating are family businesses. The chapter focuses on the family business model in the clothing luxury business. The main goal is to analyse how the innovation strategy implemented by family businesses operating in the clothing context could represent a means of sustainable development in the society, in terms of economic, social and cultural aspects. Indeed, thanks to its history and reputation, the family could increase the integrity of its business, generating a positive impact both on its turnover, on the employment and, in general, on the society. In addition, the clothing luxury democratization makes a choice in a scale of desires. As the luxury is a social value manifestation within the community, the possession of a clothing luxury product leads to certain individual benefits, expressing the extent to which a person belongs to a certain social class. Consequently, the luxury could be a synonym of culture, art and innovation, instead of a simple vehicle for companies to make money. The theoretical framework is based on the study of Miller and Le Breton-Miller model (Managing for the long run: Lessons in competitive advantage from great family businesses. Harvard Business School Press, Boston, 2005), which identified a series of family business success drivers which, in a strong combination, impact on both strategic decisions and daily management. We created a qualitative model, identifying a series of specific features of family businesses which constitute a competitive advantage in the context of clothing luxury fashion, in order to make the generate a “sustainable luxury business”. This model was created by means of a qualitative method: despite criticism of its trustworthiness, the qualitative method was used due to the fact that it allows for an accurate understanding of the dynamics of the family business, which is a complex context, while avoiding a purely descriptive approach which would be equally limiting. In addition, the effectiveness of the framework theories can be directly contextualised in the analysed sector. Lastly, the qualitative method is frequently used in family business research, both to understand the family decision-making process and to compare family businesses and non-family businesses. The choice of this topic is due to a lack of studies in the literature on the impact of the family variable on the innovation strategy in the clothing luxury business. In fact, analysis of the contents of the major family business journals and books revealed that no research has been published on this subject.

The Relationships between Companies and Bank System: An Analysis of Italian Context

The purpose of our research is to propose to model which could suggest to Italian small and medium companies the best appropriate funding resources to their economic and financial situation. The framework of this paper is represented by Giacosa and Mazzoleni (2016), in which a model classifies the companies into six groups according to different elements, such as attitude to repay financial debts, company’s growth, and profitability. The sample is composed of 39.400 Italian companies. In particular, companies could be divided in these categories: i) star companies; ii) companies at the beginning of decline; and iii) companies in crisis.It emerged that, in a medium-term vision, it’s necessary to change the management behavior and to try to reach economic fundamentals expected by the bank system, while in the short-term vision the companies have to learn how to use a non-bank financial instruments.

Management control in Italian SMEs

The main goal of this research is to investigate management and implications issues with regard to performance measurement systems (PMSs) in small and medium firms (SMEs) in Italy. In particular, the aim is to comprehensively understand the use of management accounting tools in Italian SMEs. Indeed, appropriate managerial tools are relevant in firm management, especially for the improvement and growth of firms in this turbulent international scenario. The focus is on SMEs - in some countries such as Italy, small and medium firms play an important role; however, mainstream studies in management literature focus more on large firms. The method used to conduct this study is a survey that collected a high level of data on PMSs. The sample includes 309 Italian SMEs. The main findings concern the use and adoption of management control tools. In addition, the analysis of management issues is based on both major national and international literature and empirical evidence and adopts the newly emerging beyond budgeting theory. Finally, this study contributes to a better understanding of the behaviour of SMEs with regard to the management and control of their performance. In particular, this research highlights that budgets are still an important managerial tool for SMEs.

A new communication and retail distribution formula in food sector

Food and wine are typical products of exportation, as the Italian ones are recognised for its high quality, tradition or competitiveness in terms of quality/price. Therefore, the food sector represents a critical context for company opportunities. The research fits into this area of study. The purpose is to identify which communication and retail distribution strategy a medium-sized company in food sector could adopt in order to increase competitive advantage. Considering that the food sector is a mature one, we analysed how a functional strategy - the communication and distribution one - within a main business strategy may introduce new ideas and makes use of new means to convince consumers on the value of what they eat and on the correlation between the diet and health, improving customer loyalty. The treatise was carried out using the case study method. It emerged that a communication and retail distribution strategy of a medium-sized company operating in a mature sector such as the food may renew the classic and most traditional features of its formula, being successful.