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Small businesses and the effects on the growth of formal collaboration agreements: additional insights and policy implications

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  • Maria Michela Dickson
  • Giuseppe Espa
  • Roberto Gabriele
  • Andrea Mazzitelli

Abstract

The paper studies the impact of formal collaboration agreements (FCA) on firms’ growth in Italy. To conduct a proper evaluation exercise, we started building a novel database of Italian firms where networked firms in 2012 (treated units) are matched with firms that did not subscribe to a formal network agreement (controls units) but possess similar observable characteristics. Then we use difference-in-differences regression models in which we employ time lags in the relationships between objective variables and control ones. We show that FCAs have a positive effect and can be interpreted as a valid means to reduce the cognitive distance from the market of firms. Moreover, the effect is mainly due to a defensive strategy. The effect is stronger for those firms that do not exploit other proximity types, namely geographical and organizational. Finally, structural characteristics play a role: younger and smaller firms avoid a ‘size contraction’ signing an FCA.

Suggested Citation

  • Maria Michela Dickson & Giuseppe Espa & Roberto Gabriele & Andrea Mazzitelli, 2021. "Small businesses and the effects on the growth of formal collaboration agreements: additional insights and policy implications," Applied Economics, Taylor & Francis Journals, vol. 53(46), pages 5397-5414, October.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5397-5414
    DOI: 10.1080/00036846.2021.1922595
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    Cited by:

    1. Xin, Yongrong & Khan, Rizwan Ullah & Dagar, Vishal & Qian, Fang, 2023. "Do international resources configure SMEs' sustainable performance in the digital era? Evidence from Pakistan," Resources Policy, Elsevier, vol. 80(C).
    2. Valentina Pieroni & Nicola Lattanzi & Massimo Riccaboni, 2024. "The dynamic impact of inter-firm network agreements," Small Business Economics, Springer, vol. 63(3), pages 939-969, October.
    3. Devicienti, Francesco & Grinza, Elena & Manello, Alessandro & Vannoni, Davide, 2022. "Employer Cooperation, Productivity, and Wages: New Evidence from Inter-Firm Formal Network Agreements," IZA Discussion Papers 15617, Institute of Labor Economics (IZA).

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