This research aims to analyse the influence of cultural dimensions on the internationalization of Italian firms.
While there has been much research on international business and cultural aspects, few researchers have taken into consideration the peculiarities of the Italian culture and their influence on internationalization.
To test the hypothesis that Italian firms are influenced by the cultural dimensions identified by the GLOBE study, by the cultural distance indexes, and, eventually, by specific economic indexes, we have selected two dependent variables that express the most relevant modes through which firms enter a foreign country, namely foreign direct investments and trades.
Through an in-depth assessment of secondary data mainly available online, we have ranked the countries according to the foreign direct investment and trade performances. Results have been compared with cultural scores inferred from GLOBE and with competitiveness indexes devised by Schwab (2019), UNDP (2020), and IMD (2019). A cultural distance comparison based on differences between Italy and other countries has been made.
The outcomes show the Italian industry’s systemic weakness derived from the current competitiveness reports and record significant cultural gaps in relation to the top performer countries. Italy’s low score in GLOBE’s dimensions like performance orientation, future orientation, individualism, and uncertainty avoidance together with relatively high power distance put the country quite far from the cultural scores exhibited by the top performers. The results prove undoubtedly that the weakness of Italian internationalization strategy requires a new set of reforms aiming to increase the competitiveness of the country, resolve the eternal dilemma between North and South, and educate the future managers propelling a new international mentality in place of the “parochial” one typically affecting Italian Small and Medium Enterprises.
Table of Contents
CHAPTER 1
1.1. Introduction
1.2. Research Aim, Research Questions, Objectives, and Hypothesis
CHAPTER 2
2.1. Literature Review
CHAPTER 3
3.1. Research Design and Methodology
3.2. Limitations
3.3. Ethical Considerations
CHAPTER 4
4.1. The Italian Industry
4.2. The GLOBE Framework and Italy
4.2.1. Uncertainty Avoidance
4.2.2. Future Orientation
4.2.3. Power Distance
4.2.4. Institutional and In-group collectivism
4.2.5. Human Orientation
4.2.6. Performance Orientation
4.2.7. Gender Egalitarianism
4.2.8. Assertiveness
4.3. The GLOBE Framework and Trade Analysis
4.4. Cultural Distance indexes: KS and CA
CHAPTER 5
5.1 Analysis of the results
5.2 Italian trends and challenges
CHAPTER 6
6.1 Conclusions
Research Objectives and Themes
This dissertation investigates the extent to which national cultural dimensions influence the internationalization performance of Italian firms. By employing the GLOBE study framework and integrating various economic indices, the research seeks to uncover how specific cultural traits, such as uncertainty avoidance and power distance, affect the strategic entry modes and global competitiveness of Italian enterprises.
- The influence of national cultural dimensions on Italian business internationalization.
- Application of the GLOBE study framework to the Italian industrial context.
- Evaluation of Italian firms' performance regarding Foreign Direct Investment (FDI) and trade.
- Comparative analysis of Italian cultural traits against top-performing global economies.
- Assessment of future challenges for Italian managers in a globalized environment.
Excerpt from the Book
4.1. The Italian Industry
Italy is the second-largest manufacturing in Europe and the seventh in the world (Richter, 2020). What is impressive and unique about Italy is the multitude of small and medium enterprises, or SMEs, that make up the majority of the national industrial fabric. According to the OECD (2020a), Italy is the second country globally by number of SMEs, notably employing up to 49 persons. However, the first one, Turkey, is far behind Italy when it comes to the manufacturing level. If we look at the first 10 top countries of the ranking, Italy's closest country is Japan that boasts almost 30.000 SMEs less than Italy.
As far as the Italian firms' international activity, the following tables provide an indication about trades and investment volumes ranked by country according to the average data from 2015 to 2019.
It is precisely from here that originates the rationale of this study that is driven by the peculiarities characterizing the Italian industry like:
• family companies at a second or third generation with a long and consolidated history in the business;
• ambition to expand the business outside the borders but, at the same time, a cultural approach not always suitable for the global environment;
• presence of the owner in the critical decisions.
The small dimension of the Italian firms requires the entrepreneur's active presence in the daily business, quicker decision chain, and presupposes more extensive interactions between individuals working in the company. Informal communications prevail over bureaucracy and, at the same time, private and business relations are intertwined.
Chapter Summary
CHAPTER 1: Provides the introduction and defines the research aim, objectives, and hypotheses concerning the influence of culture on internationalization.
CHAPTER 2: Reviews existing literature on cross-cultural management and internationalization, establishing the theoretical foundation via the GLOBE study.
CHAPTER 3: Details the research design and methodology, explaining the use of secondary data and statistical correlation methods to test the hypothesis.
CHAPTER 4: Analyzes the Italian industrial structure, defines GLOBE dimensions within the Italian context, and performs a trade and cultural distance analysis.
CHAPTER 5: Presents the analysis of the research results and discusses current Italian trends, challenges, and competitiveness gaps.
CHAPTER 6: Concludes the dissertation by summarizing the findings on how cultural dimensions affect Italian firms' international strategy.
Keywords
Internationalization, Italian Companies, GLOBE Study, Cultural Dimensions, Foreign Direct Investment, FDI, Trade, Cultural Distance, Kogut and Singh Index, Cultural Attractiveness, Competitiveness, SMEs, Organizational Culture, Management, Global Business
Frequently Asked Questions
What is the primary focus of this dissertation?
The research explores the connections between national cultural dimensions, as defined by the GLOBE study, and the internationalization efforts of Italian firms.
What are the central themes discussed in the work?
The work focuses on how cultural traits like uncertainty avoidance, power distance, and collectivism influence Italian SMEs' international expansion and their strategic decision-making processes.
What is the core research question?
The study aims to determine to what extent national cultural dimensions influence the internationalization level of Italian firms.
Which scientific methods are utilized?
The research adopts a sequential explanatory mixed method, utilizing secondary data analysis, Pearson correlation methods, and Student t-tests to evaluate the impact of cultural indices on FDI and trade variables.
What does the main body of the work cover?
The main chapters cover the Italian industrial landscape, a deep dive into the nine GLOBE dimensions in the Italian context, a trade and competitiveness analysis, and a correlation study between culture and business performance.
Which keywords best characterize this research?
Key terms include Internationalization, Italian Companies, GLOBE Study, Cultural Dimensions, FDI, Trade, Cultural Distance, and Competitiveness.
How does Italian regional culture influence the results?
The author notes significant differences between Northern and Southern Italian cultural traits, suggesting that these internal variations impact firm management, though the study maintains a macro-level national focus.
What is the significance of the "North-South fracture" mentioned in the conclusions?
The author identifies this fracture as an ongoing challenge for the Italian economy, citing the South's lack of industries and a cultural mindset that is often incompatible with broad internationalization goals.
- Citar trabajo
- Ivano Pini (Autor), 2021, Internationalization of Italian companies. A cross-cultural perspective, Múnich, GRIN Verlag, https://www.grin.com/document/1117257
