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Traditional industrial districts in the face of globalization: the case of the Marche footwear district

Author

Listed:
  • Eleonora Cutrini

    (University of Macerata)

  • Giacinto Micucci

    (Bank of Italy)

  • Pasqualino Montanaro

    (Bank of Italy)

Abstract

This paper studies the case of the Marche footwear districts. Statistical evidence and interviews with entrepreneurs suggest that the traditional inter-firm relationships within these districts have significantly changed during the past decade. Some leading firms have been building up more exclusive relations with their suppliers, including those abroad, along �buyer-driven� value chains. Moreover, firms have been adopting different strategies, following two main paths: the first is a �focusing-on-quality� strategy, based on upgrading the quality of the goods and investing in brands, R&D and specific distribution channels; the second is a �focusing-on-costs� strategy, which aims at minimizing the production costs of a medium-quality range of goods, including outsourcing abroad. This study shows that firms which focused on quality did better than others, both in the years before the crisis of 2008-09 and during the recession.

Suggested Citation

  • Eleonora Cutrini & Giacinto Micucci & Pasqualino Montanaro, 2013. "Traditional industrial districts in the face of globalization: the case of the Marche footwear district," Questioni di Economia e Finanza (Occasional Papers) 150, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_150_13
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2013-0150/QEF_150.pdf
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    Keywords

    global value chain; industrial districts; internationalization; footwear industry; firms� organization and strategies;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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