Keywords
How to Cite
Accepted 2022-09-14
Published 2023-03-28
Abstract
Purpose. This paper offers an exploratory analysis of the existence of industry-specific patterns of resilience in the context of the Italian fashion industry, captured through a financial analysis.
Design/methodology/approach. Building on a dataset of 37.052 firms operating in the Italian fashion industry, we adopt an outcome-based approach using financial indicators capturing the profitability, liquidity, and solidity, to assess the existence of recovery patterns. We separately analyze and compare the period after the 2008 global financial crisis (2009-2019) and the effects of the Covid-19 pandemic (2019-2021) .
Findings. Our findings suggest the existence of industry-specific recovery patterns. Specifically, Italian fashion firms have been able to capitalize on their pre-crisis financial health to increase their investments especially towards new business models and nurture a recovery in profitability. Furthermore, the greater contribution to resilience of SME’s relative to large competitors supports previous findings on the mutual reinforcement mechanism of an industry firms’ networking and financial health.
Practical and Social implications. From a managerial viewpoint, companies should be aware of the signalling role of financial ratios as drivers of resilience and of the importance of network relationships, in order to exploit their positive effect as intensifiers of financial health and industry resilience. In a policy-making perspective, we suggest the importance of the assessing the industry-specific ability to profitably allocate financial resources in order to identify more effective supporting mechanisms.
Originality of the study. This study contributes to the literature on resilience by extending the outcome-based approach focused on financial ratios to the analysis of industry-level resilience. In doing so, we underscore the importance of using a systemic approach in the assessment of financial health and offer a fine-grained analysis that captures both general industry patterns and sub-industry specificities in a comparative lens.
References
Adam, M., Strähle, J., & Freise, M. (2018). Dynamic capabilities of early-stage firms: Exploring the business of renting fashion. Journal of Small Business Strategy, 28(2), 49-67.
Antomarioni, S., Bevilacqua, M., Ciarapica, F. E., & Marcucci, G. (2017). Resilience in the Fashion Industry Supply Chain: State of the Art Literature Review. In Workshop on Business Models and ICT Technologies for the Fashion Supply Chain (pp. 95-108). Springer, Cham.
Arcuri, A. (2021). The Impact of Internationalization Processes on the Exploitation of Existing Markets: The Case of Italian Fashion SMEs. Journal of International Business and Management, 4(1), 1-12. doi:10.37227/JIBM-2021-01-129
Berra, L., Piatti, L., & Vitali, G. (1995). The internationalization process in the small and medium sized firms: A case study on the Italian clothing industry. Small Business Economics, 7(1), 67-75. doi:10.1007/BF01074317
Bertacchini, E. E., & Borrione, P. (2013). The geography of the Italian creative economy: The special role of the design and craft-based industries. Regional Studies, 47(2), 135-147. doi:10.1080/00343404.2011.628652
Bhardwaj, V., & Fairhurst, A. (2010). Fast fashion: Response to changes in the fashion industry. The International Review of Retail, Distribution and Consumer Research, 20(1), 165-173. doi:10.1080/09593960903498300
Brydges, T., Retamal, M., & Hanlon, M. (2020). Will COVID-19 support the transition to a more sustainable fashion industry?. Sustainability: Science, Practice and Policy, 16(1), 298-308. doi 10.1080/15487733.2020.1829848
Bullough, A., & Renko, M. (2013). Entrepreneurial resilience during challenging times. Business Horizons, 56(3), 343-350. doi:10.1016/j.bushor.2013.01.001
Cantoni, F., Graziano, P., Maiocchi, F., & Rizzi, P. (2019). A Territorial and Organizational Approach to Resilience. Symphonya. Emerging Issues in Management, (2), 108-118. doi:10.4468/2019.2.10
Cappelli, L., D’Ascenzo, F., Natale, L., Rossetti, F., Ruggieri, R., & Vistocco, D. (2017). Are Consumers Willing to Pay More for a “Made in” Product? An Empirical Investigation on “Made in Italy”. Sustainability, 9(4), 556. doi:10.3390/su9040556
Carcano, L., & Lojacono, G. (Eds.). (2019). Made in Italy Industries: Managerial issues and best practices. Milan: EGEA.
Cellini, R., & Cuccia, T. (2015). The economic resilience of tourism industry in Italy: What the ‘great recession’data show. Tourism Management Perspectives, 16, 346-356. doi:org/10.3390/su9040556
Chavan, R. B. (2018). Analysis of fashion industry business environment. Trends in Textile & Fashion Designing, 2(4), 212-219. doi: 10.32474/LTTFD.2018.02.000144
Christopher, M., Lowson, R., & Peck, H. (2004). Creating agile supply chains in the fashion industry. International Journal of Retail & Distribution Management, 32(8), 367–376. doi:10.1108/09590550410546188
Confartigianato (2021). “Trend imprese della moda: nella pandemia persi 206 miliardi di euro di ricavi ma cresce la qualità del made in Italy”. https://www.confartigianato.it/2021/06/studi-trend-imprese-della-moda-nella-pandemia-persi-206-miliardi-di-euro-di-ricavi-ma-cresce-la-qualita-del-made-in-italy/
Corner, P. D., Singh, S., & Pavlovich, K. (2017). Entrepreneurial resilience and venture failure. International Small Business Journal, 35(6), 687-708. doi:10.1177/0266242616685604
Curran, L. (2009). The EU clothing market in 2008–opening the floodgates?. Journal of Fashion Marketing and Management: An International Journal. doi:10.1108/13612020910974456
D’Adamo, I., & Lupi, G. (2021). Sustainability and resilience after COVID-19: A circular premium in the fashion industry. Sustainability, 13, 1861. doi:10.3390/su13041861
De Falco, S. E., & Simoni, M. (2014). The effect of public export incentives on Italian textile and fashion SMEs. International Studies of Management & Organization, 44(1), 70-83. doi:10.2753/IMO0020-8825440105
Duchek, S. (2018). Entrepreneurial resilience: a biographical analysis of successful entrepreneurs. International Entrepreneurship and Management Journal, 14(2), 429-455. doi:10.1007/s11365-017-0467-2
Gittell, J. H., Cameron, K., Lim, S., & Rivas, V. (2006). Relationships, layoffs, and organizational resilience: Airline industry responses to September 11. The Journal of Applied Behavioral Science, 42(3), 300-329. doi:10.1177/0021886306286466
Guercini, S., & Runfola, A. 2015. Small-medium sized manufacturers’ internationalization through retail store openings abroad: A study of the Italian fashion industry. In International Marketing in the Fast Changing World. Emerald Group Publishing Limited. doi:10.1108/S1474-797920150000026004
Guercini, S., & Milanesi, M. (2017). Extreme luxury fashion: business model and internationalization process. International Marketing Review. doi:10.1108/IMR-08-2015-0183
Guercini, S., Ranfagni, S., & Runfola, A. (2020). E-commerce internationalization for top luxury fashion brands: some emerging strategic issues. Journal of Management Development. doi:10.1108/JMD-10-2019-0434
Heine, K. (2012). The concept of luxury brands. Luxury brand management, 1(2), 193-208.
Henninger, C. E., Alevizou, P. J., & Oates, C. J. (2016). What is sustainable fashion?. Journal of Fashion Marketing and Management: An International Journal. doi:10.1108/JFMM-07-2015-0052
Hsu, C. H., Chang, A. Y., Zhang, T. Y., Lin, W. D., & Liu, W. L. (2021). Deploying Resilience Enablers to Mitigate Risks in Sustainable Fashion Supply Chains. Sustainability, 13(5), 2943. doi:10.3390/su13052943
Hur, E., & Cassidy, T. (2019). Perceptions and attitudes towards sustainable fashion design: challenges and opportunities for implementing sustainability in fashion. International Journal of Fashion Design, Technology and Education, 12(2), 208-217. doi:10.1080/17543266.2019.1572789
IlSole24Ore. (2020). Osservatorio Il Sole24Ore. Il tessile per la casa supera la dura prova della pandemia. https://www.homimilano.com/news0/news/il-tessile-per-la-casa-supera-la-dura-prova-della-pandemia.html
Ivanov, D., & Dolgui, A. (2020). A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0. Production Planning & Control, 1-14. doi:10.1080/09537287.2020.1768450
Ko, E., Costello, J. P., & Taylor, C. R. (2019). What is a luxury brand? A new definition and review of the literature. Journal of Business Research, 99, 405-413. doi:10.1016/j.jbusres.2017.08.023
Jiménez-Zarco, A. I., Moreno-Gavara, C., & Njomkap, J. C. S. (2019). Sustainability in Global Value-Chain Management: The Source of Competitive Advantage in the Fashion Sector. In C. Moreno-Gavara & A. I. Jiménez-Zarco (Eds.), Sustainable Fashion (pp. 37-76). Palgrave Macmillan, Cham.
Li, W. Y., Chow, P. S., Choi, T. M., & Chan, H. L. (2016). Supplier integration, green sustainability programs, and financial performance of fashion enterprises under global financial crisis. Journal of Cleaner Production, 135, 57-70. doi:10.1016/j.jclepro.2
06.048
Liefeld, J.P. (2004). Consumer knowledge and use of country-of-origin information at the point of purchase. Journal of Consumer Behavior, 4, 85–96. doi:10.1002/cb.161
Ministry of Foreign Affairs and International Cooperation (2020). Excellence: Italian main industrial sectors Directorate General for Cultural and Economic Promotion and Innovation, Ministry of Foreign Affairs and International Cooperation, November 2020. https://www.esteri.it/mae/resource/doc/2021/01/brochure_eccellenze.pdf
Nigri, G., Del Baldo, M., & Agulini, A. (2020). The Mondora method: Quantum leaders in benefit corporations. Entrepreneurship Research Journal, 10(4). doi:10.1515/erj-2019-0309
Paulicelli, E. (2014). Fashion: the cultural economy of Made in Italy. Fashion Practice, 6(2), 155-174.
Paulicelli, E. (2015). Italian fashion: yesterday, today and tomorrow. Journal of Modern Italian Studies, 20(1), 1-9.
Pencarelli, T., Cesaroni, F. M., & Demartini, P. (2020). Covid-19 and Italian small and medium-sized enterprises: consequences, threats and opportunities. Piccola Impresa/Small Business, (3).
Passeri, R., Mazzi, C., & Viassone, M. (2014). Il circolo virtuoso tra regional brand e attrattività Regionale: prime evidenze dalle regioni italiane. Piccola Impresa/Small Business, (1).
Reinach, S. S. (2015). The meaning of 'Made in Italy' in fashion. Craft+ Design Enquiry, 7, 135.
Runfola, A., & Guercini, S. (2013). Fast fashion companies coping with internationalization: driving the change or changing the model?. Journal of Fashion Marketing and Management: An International Journal, 17(2), 190-205. doi:10.1108/JFMM-10-2011-0075
Scalamonti, F. (2020). Emerging markets and cross-cultural distance: an revisiting of drivers of sme internationalization process. Piccola impresa/Small Business, (1), 8.
Segre, S. (2006). Milan: The City of Pret-a-Porter. In C. Breward and D. Gilbert (Eds.), Fashion’s World Cities (pp. 1–12). Oxford: Berg.
Taplin I. M. (2006). Restructuring and reconfiguration: The EU textile and clothing industry adapts to change. European Business Review, 18(3), 172-186. doi:10.1108/09555340610663719
Tavoletti, E. (2011). The internationalization process of Italian fashion firms: Looking for an analytical generalization. South Asian Journal of Management, 18(2), 7-29.
Temperini, V., Gregori, G. L., & Palanga, P. (2016). The brand made in Italy: A critical analysis. Management Studies, 4(3), 93-103. doi:10.17265/2328-2185/2016.03.001
Todeschini, B. V., Cortimiglia, M. N., Callegaro-de-Menezes, D., & Ghezzi, A. (2017). Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges. Business Horizons, 60(6), 759-770. doi:10.1016/j.bushor.2017.07.003
Verdone, F., Cantarero, S., & Puig, F. (2021). Capturing the Resilience of the Textile Companies as a Specific Response of the Fashion industry. In L. Rienda, L. Ruiz-Fernàndez, L. D. Carey & I. Garcìa-Medina (Eds.), Firms in the Fashion Industry (pp. 141-161). Palgrave Macmillan, Cham.
White, N. (2000). Reconstructing Italian Fashion. Oxford: Berg.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2023 Ilaria Galavotti, Carlotta D'Este, Anna Maria Fellegara