Industrial Districts and Delocalisation: How to Manage Cultural Diversity?

Abstract

The research question of this paper refers to the management of potential cultural diversity problems arising from the increasing delocalisation processes of Italian industrial district firms. It is argued that these firms can decrease such cultural distance with their new foreign partners via the activation of knowledge exchanges and interorganisational learning processes, spreading the human capital (on a corporate level) and the district social capital (on a macro level). Indeed, while the former reduces the interfirm distance, the latter eases the approach of the Italian firms with their new hosting localities. Based on such insights, the paper suggests a theoretical proposal, supported by practical evidence. The main result is a four-step managerial process based on intangible factors for mitigating cultural differences.

Keywords: delocalisation, industrial districts, cultural diversity