Nunzia Carbonara

Information and communication technology and geographical clusters: opportunities and spread

Abstract The widespread adoption of information and communication technologies (ICTs) characterising the recent competitive scenario has been of great interest to researchers and practitioners. Many studies have been carried out to provide answers to different questions concerning, for example, the impact of ICTs on organisations, the role of ICTs in the economic development, the opportunities given by ICTs’ adoption to SMEs. In this paper, the opportunities provided by the adoption and implementation of ICT solutions in a particular SME-intensive productive environment, the geographical cluster, are examined. To this end, first the ICT capabilities and their effects on the value-creating processes characterising a generic supply chain are analysed. Subsequently, the analysis is contextualised to geographical clusters in order to identify the more appropriate ICTs for cluster firms. Finally, the actual ICTs’ spread within the Italian industrial districts is examined.

Supply chain cooperation in industrial districts: A simulation analysis

In the past few years the literature on supply chain management has widely emphasized that cooperation among supply chain (SC) firms is a key source of competitive advantage. This paper explores the topic in a particular context, i.e. the industrial district (ID), which constitutes a specific production model where complex SC networks can be identified. SC cooperation may take on several forms in IDs and may produce several benefits (e.g. upgrading quality and reducing costs) so this paper also analyzes the benefits of a specific form of SC cooperation in different competitive scenarios and for diverse ID organizational structures. An agent-based model of SC cooperation in IDs has been developed and a simulation analysis carried out.

Innovation processes within geographical clusters: a cognitive approach

Abstract The competitiveness of geographical clusters can be considered to be the outcome of their innovative capabilities. The development of these capabilities has been a function of different traits of clusters that from time to time have characterised the evolution of clusters. In this paper, a cognitive approach is proposed to investigate the characteristics of the innovative processes within three main types of cluster which correspond to three main evolutionary stages of clusters. With this aim, a cognitive characterisation of the innovative processes, in terms of both learning and knowledge management functions, is followed by an analysis of the learning processes carried out within clusters. The paper concludes with the role played by specific actors, namely leader firms and ‘meta-management’ structures, to enhance the innovative capabilities of clusters, and some early policy considerations for cluster development in the UK.

Supply chains within industrial districts: A theoretical framework

Abstract The literature on Industrial Districts (IDs) has emphasised the importance of inter-organisational relationships within this specific production model. However, this stream of studies has given less attention to conceptualise models and define techniques to effectively manage such relationships. In the paper a theoretical framework is proposed to characterise the IDs as a kind of production systems, on which basis appropriate managerial guidelines can be derived. In particular, the framework focuses on the supply chain/s within an ID and describes them in terms of physical, technological, strategic, and organisational dimensions. The theoretical framework is intended to help IDs, particularly the leader firms, better understand the whole production process so as to enhance the process performance. A case study of an Italian ID localised in Southern Italy is then discussed to validate the framework.

External knowledge sources and proximity

– Following the line traced by two previous works of Albino et al. and Messeni Petruzzelli, the paper aims to analyze how technology districts reach and acquire external competencies and capabilities by means of organizational and cognitive proximity. This allows districts to modify their geographical boundaries and evolve into technology clusters., – The research design is based on a case study methodology. In particular, two actual technology districts are analyzed, namely Castel Romano and Toulouse, in order to show how they use organizational, and cognitive proximity to acquire external knowledge sources and re‐shape their geographical boundaries., – Based on the findings of the empirical study, two main propositions are formulated. The first proposition refers to the negative relationship between the geographical distance to the districts actors and the use of organizational proximity as a means for reaching external knowledge sources. By contrast, the second proposition indicates the positive relationship between the geographical distance to the districts actors and the use of cognitive proximity as a means for reaching external knowledge sources., – As regards the firm strategic behaviors, it seems particularly crucial to exploit all the three dimensions of proximity, in order to guarantee openness and sustain innovativeness and competitiveness. Concerning policy implications, the local governments should address their actions to help and promote the openness of technology districts and the formation of technology clusters. With this aim, actions should be devoted also to sustaining single local firms that are part of a technology cluster but not of a technology district. These, in fact, by increasing their competitive position, may generate positive externalities in the local area, fostering the diffusion and sharing of knowledge in the area and, then, acting as knowledge gatekeepers for the whole area., – The paper extends the findings of previous works linking three proximity dimensions in a holistic framework that explains the different use of organizational and cognitive proximity to acquire knowledge, according to the geographical distance between organizations.

Revenue guarantee in public-private partnerships: a fair risk allocation model

Public-private partnerships (PPPs) are adopted throughout the world for delivering public infrastructure. Despite the attractiveness of the PPP structure, its implementation has not been without trouble due to multiple uncertainties embedded with PPP projects. Private investors often require some mitigation of these risks through government support. One of the most common forms of government support is minimum revenue guarantee (MRG). A real option-based model is developed that uses a new mechanism for setting the revenue guarantee level secured by the government, which balances the private sector’s profitability needs and the public sector’s fiscal management interests and uses the concept of fairness for structuring MRGs. The model uses Monte Carlo simulation to take into account the uncertainty. The model is applied to the projected 1 kilometre long ‘Camionale di Bari’ toll road that will link the port of Bari (located in Puglia, Southern Italy) with the existing road network without affecting the urban traffic. It was found that government support is often needed to make the project attractive to private investors and that the developed model can be, for both public and private sectors, a valid tool for defining the fair value of the minimum amount of revenue secured by the government.

Real option theory for risk mitigation in transport PPPs

Purpose – Public-private partnerships (PPPs) require the analysis and allocation of a broad spectrum of risks which are considered more complex than in traditional construction contracts. Traditional risk management techniques tend to ignore the managers ability to recognize and exploit opportunities, which arise as uncertainties are resolved over time and which could potentially increase the projects value. Therefore it is necessary that the risk management process takes account of the managerial flexibility (e.g. real options). The objective of this paper is to explore the possibilities and rationale for implementing real options strategies in the risk management process. Design/methodology/approach – The approach is based on a literature analysis aimed at identifying key risks and related mitigation strategies and on real option theory in order to model these strategies as managerial flexibilities that naturally exist or are built “artificially” in contractual conditions and clauses, guarantees, etc....

Risk Management in Motorway PPP Projects: Empirical-based Guidelines

Abstract This paper deals with the topic of risk management in Public Private Partnership (PPP). The analysis of the related literature reveals that risks must be analyzed and managed on a context-specific approach, and that there is a lack of a comprehensive study on the appropriate risk mitigation strategies for each risk embedded in PPP projects. Focusing on the transport sector, based on the results of a Delphi survey, the paper provides guidelines for both public and private parties in defining a list of significant risks in PPP motorway projects, and identifying for them both the effective allocation and the suitable mitigation strategies. Results of the Delphi survey have been compared with the common practices on risk management applied in eight real motorway PPP projects.

The new product development process within industrial districts: a cognitive approach

Intense competition in many industries is forcing firms to reengineer the new product development (NPD) process in order to carry out new, higher quality products at an increasingly rapid pace. The need to improve the effectiveness and efficiency of the NPD process is particularly perceived by the manufacturing firms of Italian industrial districts (IDs). Although the literature has emphasised the importance of NPD process within IDs, less attention is given to the definition of descriptive models aimed at providing managers with a better understanding of the NPD process within IDs. In the paper a knowledge-based approach is proposed to analyse the NPD process. Such an approach has been used to study a real NPD process within an Italian ID firm. Managerial implications addressed to improve the NPD performance and based on a cognitive approach are discussed.

Knowledge in Inter-Firm Relationships in an Industrial District

In this article, a cognitive approach, arising from the resource-based view of the firm, is adopted to investigate how inter-firm relationships are changing in industrial districts, and how the characteristics of knowledge involved in these networking processes can affect change. Assuming that the content of any inter-firm relationship may be defined as ‘transferred knowledge’ that is required for the purpose of facilitating coordination between the firms, there are two problem areas of complexity: the complexity caused by uncertainty and the complexity caused by ambiguity. Starting from this assumption, the relations between the complexity of the ‘transferred knowledge’ and the specific types of inter-firm relationships are examined. Then, the impact of the knowledge codification process and the value of social interactions for the effectiveness and efficiency of coordination between firms are given particular attention.