Competitive Advantage and Internationalization of Italian Small and Medium-Sized Manufacturing Firms

The paper aims at exploring the factors needed by small and medium sized manufacturing enterprises to obtain a successful positioning in the international market and at identifying what there is at the root of their competitive advantage. Using a sample of 519 small and medium sized firms, with 20 to 250 employees, operating in five Italian regions, the empirical evidence reveals that the competitive advantage of Italian small enterprises is based upon a combination of elements such as price, differentiation and high technical standards of the product. According to this study, to be competitive in respect of price remains however the imperative of Italian SMEs’ behaviour in international markets.