Using data from 68 Italian industries, this paper tests the determinants of the adoption of modular organizational forms in the Italian manufacturing sector. The regression results support only partially the idea that organizational modularity is positively related to the degree of heterogeneity of inputs and demand. Whereas the direct effect of heterogeneity is not significant, the presence of industry standards significantly mediates the effect of heterogeneity. Also, technological change is significant but its impact on modularity is weak and counterintuitive. Much stronger is, instead, the impact of labor intensity. Overall, these findings are consistent with: a) Italian firms’ specialization in the international division of labor –mature, low tech, high value added, labor intensive industries; b) Italian industrial organization built around clusters; c) the idea that national specificities remain important in shaping industrial evolution.
The use of modular organizational forms in Italy: an industry level analysis
CAMUFFO, ARNALDO;
2007
Abstract
Using data from 68 Italian industries, this paper tests the determinants of the adoption of modular organizational forms in the Italian manufacturing sector. The regression results support only partially the idea that organizational modularity is positively related to the degree of heterogeneity of inputs and demand. Whereas the direct effect of heterogeneity is not significant, the presence of industry standards significantly mediates the effect of heterogeneity. Also, technological change is significant but its impact on modularity is weak and counterintuitive. Much stronger is, instead, the impact of labor intensity. Overall, these findings are consistent with: a) Italian firms’ specialization in the international division of labor –mature, low tech, high value added, labor intensive industries; b) Italian industrial organization built around clusters; c) the idea that national specificities remain important in shaping industrial evolution.
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