DOES THE NETWORK AFFECT FIRMS' PERFORMANCE? THE CASE OF ITALIAN AGRI-FOOD SECTOR

A flourishing literature recognizes the merits of improving the performance of participants to business networks. This effect can be particularly significant in sectors with high concentration of micro and small firms. This study considers the case of Italian agri-food networks with legal personality. According to data from Italian Business Register, up to February 2020, we found 23 agri-food networks with legal personality, established in the period 2014-2017 by 172 firms. Using Orbis by BvD database, we collected balance sheet data, from 2011 to 2018, for 30 companies. Through non-parametric statistical analysis, we assessed the performance of these firms based on 12 balance sheet indicators, before and after the entry of companies into a business network. Results show that the economic indicators of firms had a positive trend after joining the network, but out of the 12 analyzed indicators before and after entering the network, differences are statistically significant just for 4 indicatores (Turnover; Shareholders funds; Return on equity, ROE; Return on capital employed, ROCE).