Internationalization and performance: evidence from the Italian supply chain

Abstract:

The main purpose of this contribution is to present a framework for performance assessment indexes in the supply chain of Italian automotive industry.This contribution starts from the premise that in an increasingly integrated market all enterprises are in effect international; whether or not firms’ activities extend beyond national borders, the environment that tempers strategy, business models and performance is an international one. It follows that support for this argument will already be evident in those regions where integration is advanced, as is the case in the European Union area.
Based on empirical data collected from balance sheets, the paper investigates the relationship between internationalization and performance. It analysis if performance is determined by export intensity and the number of international agreements, but by the ability of firms to gain access to specific markets.
Moreover, the article analyses if performance tends to suffer when SMEs internationalize through FDI, a finding that suggests a ‘liability of foreignness’ effect at the outset of international expansion. However, this negative effect can be offset by the international competencies that SMEs develop through intense export activity.