Matilde Milanesi

A Black Swan in the district? An IMP perspective on immigrant entrepreneurship and changes in industrial districts

Purpose – The purpose of this paper is to discuss the changes of the Italian textile district of Prato, considered an exemplary case of the industrial district (ID) model, using a business network perspective. The “Black Swan” metaphor is used to address the changes in the Prato textile district in order to understand whether such changes have been an unexpected and unpredictable phenomenon, or they can be explain with a different theoretical tool-box, namely, that developed by the industrial network approach. Design/methodology/approach – The paper utilizes already published studies on the changes of the textile/fashion companies located to the Prato area. Both studies that have been carried out within an ID approach and those carried out with an Industrial Marketing and Purchasing (IMP) point of departure are considered in the research. Both types of studies were utilized to identify empirical observed changes of the producer, respectively user setting that the Prato located companies was related to, in...

Interaction Approach and Liabilities: A Case Analysis of Start-Up Firms

ABSTRACT Purpose: Start-up firms have to face some key challenges due to liabilities related to processes that are external to the organization, such as establishing relationships with customers, suppliers and other relevant actors. The purpose of the article is to understand how liabilities, namely newness, smallness, foreignness and outsidership, are related to each other in start-ups, and what are the main liabilities perceived/experienced by start-ups and their counterparts, using an interactive perspective. Methodology: The article uses a case study methodology and proposes 3 cases of start-ups firms and their counterparts. Cases are built using multiple data-sources, both primary and secondary. Findings: The article highlights the role of “heritage” left by the membership in the network. This “network heritage” means that some aspects of the network are pre-existing, in terms of previous and long lasting relationships with other actors. In this sense, the network in which the firm connects pre-exists and mitigates the existence of liabilities that come into play in the processes of interdependence with other actors. This provides a perspective of liabilities, specifically the liability of newness, as an asset in the sense that newness depends on a “short story,” without constraints of a “longer story” as that of competitors in the network. The liability of newness is an asset in terms of flexibility, customized offer and innovative content. Originality/value/contribution: The main contribution of the article lies in taking an interactive perspective on start-ups and liabilities, analyzing the interaction processes taking place between the new venture and the surrounding network of essential actors. Practical implications: Liabilities arise and can be overcome in the processes of interaction, which therefore can have an ambivalent role: fertile ground for the manifestation of liabilities but also the context for its overcoming/conversion of liabilities into assets. Entrepreneurs and managers should consider newness and smallness as positive attributes for other actors in the processes of interaction, as a potential generator of value. Such a perception of newness as an asset depends on two factors: the presence or absence of an organization-mother that limits the perception of newness as a liability; the sector in which the new company develops, if dynamic and innovative or still tied to traditional and consolidated processes where the experience, “history” and “heritage” of the firm are sources of legitimacy.

Extreme luxury fashion: business model and internationalization process

Purpose The purpose of this paper is to identify the defining characteristics of the extreme luxury fashion business model (ELFBM) and the relationship between this business model and the process of firm internationalization. The paper examines the potentially positive outcomes of differences and distances in the internationalization process of extreme luxury fashion companies. Design/methodology/approach The paper presents and discusses the data collected during a five-year case analysis of an Italian luxury company. The main characteristics of the business model are identified in terms of products, manufacturing and sourcing, distribution channels, marketing communications and overall characteristics of consumers. The internationalization process is described, with a focus on the Russian market as an emblematic case, highlighting the role of distances – geographic, psychic and cultural – and liabilities, namely foreignness and outsidership in the international expansion of the firm. Findings The findings of this paper highlight the main features and specific traits of the ELFBM characterized by a global and unique approach to the offer. This business model has in its origin the demand from certain foreign markets, and the elements of the country of origin of the firms coexist and are enhanced by the presence of specific characteristics of the destination countries in terms of niche consumers with economic and cultural characteristics and a strong perception of “Made in” and luxury goods. Originality/value The paper contributes to previous studies on the relationships between business models and internationalization. It provides a framework for the “ELFBM,” in which internationalization is a constitutive element of a specific business model rather than a strategy for a business model already defined. Examining the positive side of differences and distances in the internationalization process of firms adopting such business model, the paper contributes to the international business theory and practice. It also expands research on luxury fashion defining an international company which is under-investigated, the extreme luxury fashion company, and the elements that constitute its business model.

Liabilities of Foreignness and Outsidership in the Evolution of Immigrant Chinese Entrepreneurship

This chapter investigates how the immigrant Chinese companies evolve and face their liability of foreignness and liability of outsidership (concepts borrowed from the international business field) in the industrial district of Prato. The chapter adopts the perspective of the Chinese companies, investigating how those companies overcame their liabilities as they evolved within the industrial district. The immigrant Chinese companies in Prato evolved from an initial subcontractor level to become final firms engaged in diversification; this chapter analyzes the evolution in relation to the local native and immigrant communities. The industrial areas of Prato where the native and immigrant entrepreneurs coexist can generate liabilities. The immigrant Chinese entrepreneurs are insiders to their relevant global networks; however, they can experience a liability of outsidership in the local networks of the native entrepreneurs. Further, the native entrepreneurs may themselves face a liability of outsidership in the global networks in which the immigrant entrepreneurs are embedded.