The Exploitation of Digital Technologies in
Craftsmanship: a Cross-Industry Analysis
Student: Andrea Pistis- 11797258 June 20th 2018, Final Thesis
MSc. in Business Administration – Entrepreneurship and Innovation Track Amsterdam Business School, University of Amsterdam
Statement of Originality
This document is written by Student Andrea Pistis who declares to take full responsibility for the contents of this document.
I declare that the text and the work presented in this document are original and that no sources other than those mentioned in the text and its references have been used in creating it.
The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
Acknowledgements
I would like to express my gratitude to my family, closest friends, and supervisor, Dr. Michele Piazzai, that supported me in this endeavor, and to the firms that participated in this research, in particular Andrea Belli, owner and CEO of G.T. 2000, Stefano Zanotto, owner and CEO of Micro Valle Srl, Paolo Costa, owner and CEO of Costa Srl, and Moreno Vignolini, owner and CEO of Ritorcitura Vignolini. I would also like to thank Confartigianato Vicenza, in particular Dr. Matteo Pisano, in charge of the Digital Innovation Hub, and Confartigianato Prato, which both provided me with the useful contacts of the firms I had interviewed. I have also attended a series of conferences at the Make in Italy festival in Thiene, Italy, on June the 8th 2018, which dealt with digital manufacturing.
Abstract 3
Introduction 4
Objectives 5
Literature Review 8
What are crafts and their importance for cultures 8
Relation with the territory and the subsequent competitive advantage 9
Importance of clusters 12
Changing circumstances in the global value chain 13
Innovation in high-tech industry 15
Make in Italy report 17
Methodology 21
Case study method 21
Which method did you use and why 22
Description of sample/case study 23
Respondents selection 24
How do you get access to and approach these cases/ respondents? 26
Describe the data collection procedure for each method 26
Strengths of the research design 27
Industrial context of the case studies 29
The goldsmithing district of Vicenza 30
The textile district of Prato 31
Findings and discussion 34
Case studies 34
Results 36
What technologies have been adopted 36
What the reasons behind the technology adoption are 37
Has the technological component negatively influenced the artisanal one? 38 Have there been any improvements in the economic performance? 40
Have there been any competitive advantages? 40
Have any negative sides from the technology adoption been encountered? 42
Have there been any difficulties in implementation? 43
Have other technological solutions been considered? 44
Have the technologies made craftsmanship more efficient? 44 Have the technologies affected the artisanal component of your goods? 45 How do you allow technology and craftsmanship to coexist? 46
What is the future of this symbiosis? 47
Discussion 48
Limitations 55
References 56
Sitography 58
“For it is not the material, but the absence of human labour, which makes the thing worthless” - John Ruskin
Abstract
The outsourcing and offshoring of business operations in recent years has greatly affected many craft activities. Considering that craftsmanship preserves its identity only in the socio-cultural ecosystem where it has been developed, the major risk that craftsmanship faces today is the loss of knowledge that would result if craft firms were to relocate their core manufacturing activities as well. However, I hypothesize how the adoption of advanced digital technologies can represent an opportunity for craftsmanship to stay competitive in the new global context, avoid outsourcing and offshoring, and keep up with the technological progress. To consider, there is also the potential issue that the authenticity of the handcrafted goods could be negatively impacted, as the technologies might decrease the presence of human labour that goes in the goods themselves. A multiple holistic case study was carried out and provided compelling evidence to support the fact that technologies and craftsmanship can be combined to achieve a competitive advantage, without impacting the authenticity of the goods, and thus suggests that craftsmanship holds great innovation potential, allowing it to thrive in the new global context.
Keywords: technology; craftsmanship; competitive advantage; industrial district; authenticity.
Introduction
In recent years the global economy has been increasingly moving towards the offshoring and outsourcing of many business operations. More and more firms are relocating part of their business activities to low-wage countries to achieve a greater cost-efficiency and labor arbitrage, causing a series of collateral negative effects. Among these effects, there is the potential danger that many craft activities, which have made numerous products famous all over the world, can be relocated as well. If this pattern continues to unfold as it is, there is a risk that the peculiar knowledge that permeates these crafts goes lost in the process. This is due to the fact that craftsmanship preserves its identity only in the socio-cultural ecosystem where it has been developed (Buciuni et al. 2013), it was passed through generations, and perfectioned over decades of practice on the field.
Nevertheless, the fundamental problem that affects craftsmanship nowadays is not only outsourcing and offshoring. It is true that, to some degree of quality, some craft activities can be carried out by craftsmen in different locations around the world, as a result of offshoring practices. The fundamental problem that dooms craftsmanship is that there are some artisanal skills which are characteristic of a particular socio-cultural context (Bettiol and Micelli 2014) and therefore cannot be fully replicated elsewhere. Those skills should be valued and acknowledged against the relocation of manufacturing operations. These skills should remain within national boundaries because of territoriality and cultural reasons and because they can find outlet and preserve their identity only in the socio-cultural context they are found. However,
craftsmanship must face these changing circumstances in the global economy and find new ways to innovate and preserve its excellence in the future.
For many countries, craftsmanship represents one of the main pillars of their economy. In Italy, for example, craftsmanship constitutes the essence of the Made in Italy label and of the Italian economy as a whole and it has been fundamental in the development of the industrial districts. Nowadays it still constitutes a feature that allows countless Italian firms to excel in their sectors. Nonetheless, today’s world has taken a path which seems to focus primarily on technologies (Caiazza 2015, Rayna and Striukova 2017), taking out much interest from the artisanal know-how that makes many handmade goods famous and appreciated everywhere. The aim of the research is to identify whether craftsmanship and technologies, two elements which appear to be in contradiction with each other, can reach a productive symbiosis and allow craftsmanship to thrive once again.
Objectives
The objective of this research is to shed light on the potential of craftsmanship in the modern-day manufacture and whether it can be combined with technologies in order to achieve a competitive advantage. Today’s business world is increasingly focusing on technologies of all sorts and is paying less and less attention to the artisanal know-how that has been, and still is, a pivotal success factor for many economies around the world. The research will primarily focus on the Italian manufacturing sector, because it is embodied with secular artisanal excellence in many fields, ranging from
clothing to design, and represents a potential example to be followed by other foreign firms that want to value their craftsmanship as well.
However, the goal of this thesis is not to defend craftsmanship exclusively for its own sake. The goal is to demonstrate that craftsmanship still possesses potential to prove and can represent the backbone of manufacture excellence in the future all over the world. I will focus on Italian craftsmanship to give specificity to the research. Nonetheless, the topic is also generalizable because the conclusions could be theoretically applied to all those crafts everywhere in the world that possess territorial features and roots in the socio-cultural context where they have been developed and where they find their own identity and essence. The artisanal skills of a goldsmith from the jewelry district of Vicenza are unique and peculiar, but so are those of an Iranian carpet weaver. Both types of craftsmen possess an unmatched level of skills.
The focus of the research is on all artisanal skills that exist in a specific socio-cultural ecosystem and that cannot be replicated elsewhere due to the fact that, taken out of their contexts, these skills lose a significant part of their identity and, for this reason, can be seriously damaged by offshoring and outsourcing. Craftsmanship represents a feature of the economy that is deeply embedded with its nearby territory and culture. Craftsmanship should be valued, especially since the world that more than ever is moving towards high-technology and does not pay much interest in traditional crafts anymore, causing them to slowly disappear (Botnick and Raja 2011). One possible solution brought forward by this research is the adoption of technologies by craft businesses in order to achieve a competitive advantage and attain a fruitful symbiosis between craftsmanship and technologies. In particular, I address the following research question:
“Can craftsmanship in craft firms be combined with technologies in order to develop a competitive advantage, without compromising the authenticity of the goods?”
To answer the research question, I will carry out a cross-industry multiple case study to examine whether this symbiosis is possible and is already taking place.
Literature Review
What are crafts and their importance for cultures
Crafts are in integral and fundamental element of the human experience and expressions for cultures and societies alike. The desire to create handmade goods is a human quality that has always existed in societies. Craftsmanship allows for the accomplishment of meaningful work and provides a sense of self-worth. For the purpose of this research, we define craftsmanship as a form of skilled labour that is quality-driven, materially specific and motivated by internal and external rewards (Banks 2010). Moreover, craftsmanship involves skill work with the hands to create something of purposeful use and those skills require both training and continuous practice (Klamer 2012). Crafts involve the combination of different materials and human senses with the mediation of technological tools (Kosner 2009). For further clarification, UNESCO (1997) defines artisanal products as “those produced by artisans, either completely by hand, tools or even mechanical means as long as the direct manual contribution of the artisan remains the most substantial component of the finished product.”
Craftsmanship, along with historic and artistic excellence, is part of the cultural heritage of a nation. Furthermore, crafts have developed in the regions they are found today due to a mixture of both deterministic and random elements. There are various economic, social, historical, and cultural reasons for these occurrences. Murano glass,
for instance, has developed in the island of Murano, in the proximity of Venice, because Venice was also a major trading port at the time, which allowed people to come in contact with several glass products from the East. Similarly, pottery-making flourished in Delft because the Dutch East India Company had a lively trade with Far East countries producing pottery. These are just two examples of crafts that emerged as a consequence of specific socio-cultural and historical reasons, which also contributes to their heritage and tradition. It is clear then that crafts have long-standing roots with their territory, in which they find creative and artisanal outlet and preserve their identity. Their indigenous nature is a highly distinctive feature of many crafts.
Relation with the territory and the subsequent competitive
advantage
In most cases artisanal excellence, which is characteristic of many kinds of crafts, is context-dependent, preserves its identity only in the socio-cultural ecosystem where it has been developed over the generations (Buciuni et al. 2013) and cannot be replicated elsewhere with the same level of quality. Craftsmen skills have established deep relationships with their socio-cultural context and territory over the years. For the sake of the research, a socio-cultural context is defined as a set of beliefs, customs, practices, and behaviors that exists within a population. It is not a coincidence that the artisans that try to relocate to other countries find it hard to rediscover their productivity in short time: their ability depends also on the context where the craftsmen are located.
Many firms around the world have realized that outsourcing their production abroad meant losing that added value that local manufacture and savoir-faire confer the goods and are starting to bring their manufacturing activities back to their home country. This practice is defined as reshoring. Reshoring is the practice of reintroducing manufacturing activities that were previously outsourced overseas back to the country where those activities were originally located and has been gaining ground in recent years (Griseri 2014). This phenomenon involves principally firms which have sophisticated clients that seek for high quality goods. Naturally, those firms relocate in their home country to seek that artisanal excellence aimed at satisfying these demands and that does not find a correspective abroad.
Crafts in fact represent an expression of excellence, a set of superior abilities, or traditions that express themselves in the products linked to a particular place (Micelli 2011). Economic activities can be properly understood in relation to their wider socio-economic and technological context only (Maskell and Malmberg 1999). In this respect, Molotoch (1996) has noted, “The positive connection of product image to place yields a kind of monopoly rent that adheres to places, their insignia, and the brand names that may attach to them. Their industries grow as a result, and the local economic base takes shape. Favorable images create entry barriers for products from competing places.”
Craft firms have been able to establish significant competitive advantages for themselves thanks to their geographic location. They have built their competitive advantage on localized resources and capabilities which protects their core competencies. These localized resources are a product of cluster and industrial districts which, specifically in the case of Italy, allowed for an easy access to a common pool of
skilled workers, the exchange of ideas, and the close cooperation among firms within the district.
One reason why craftsmanship cannot be relocated outside their socio-cultural context preserving the same level of knowledge is due to the tacit dimension of knowledge that characterizes it. Tacit knowledge is defined as the information that cannot be expressed in speech or writing and is derived from experience, perception and learning. Artisanal knowledge, being difficult to codify, can be regarded as tacit knowledge as well. Artisanal knowledge has in fact a definite tacit dimension (Micelli 2011). Multimedia can help to codify this information, but an amount of knowledge remains uncodifiable. Tacit knowledge is widely available to firms within the districts but it is necessary to be there in order to make the most of such knowledge (Bettiol and Micelli 2014). As artisanal excellence, also tacit knowledge is context-dependent, “being facilitated by a common language, culture and value system” (Pinch et al. 2003). Superior ways of designing and manufacturing products can be facilitated by tacit forms of knowledge that are embedded in a local context and difficult to transfer elsewhere (Maskell and Malmberg, 1999). Pinch et al. (2003) argue that also communality in terms of norms, values and practices embedded in a professional community that may be geographically dispersed facilitate tacit knowledge exchange. Industrial clusters’ borders can extend beyond the perimeter of specific cities and include different urban areas in the districts’ proximity.
Nevertheless, whether it is physical proximity or communality, it is the collection of similar firms grouped in the so called clusters or industrial districts that makes the difference in terms of competitive advantages.
Importance of clusters
As defined by Porter (1998), clusters, a term which will be used interchangeably with industrial district in this research, are geographical concentrations of interconnected companies, institutions, and of unusual competitive success in a particular field. These clusters allow for linkages and synergies among the participating businesses. Examples of craft-based clusters are the island of Murano, famous for glass making, and Delft, renowned for its pottery. These districts enjoy comparative advantages that are both competitively decisive and persistent over time. Clusters do not include only businesses, but also institutions such as universities, trade associations, and fairs. By better sourcing outputs, accessing information and technology, and coordinating with related companies, firms within the cluster can significantly increase their productivity, but clusters can also affect competition, by increasing the productivity of the companies in the area.
In cultural-products industries, such as craft industries, the connection between economic activity and cultural products has special significance. One consequence of this connection is that the authenticity of cultural products is often associated to the specific places where such goods have been produced. Place and culture are highly symbiotic with one another (Scott 1997). This symbiosis is extremely important for crafts everywhere, meaning that the relocation of craft activities far from the places where they originated and developed could have serious consequences for their existence and preservation. Geographic location plays a role in firms’ ability to create and sustain competitiveness (Maskell and Malmberg 1999) and this competitiveness can be seriously hampered by phenomena such as outsourcing and offshoring.
Changing circumstances in the global value chain
The world economy has been undergoing great changes over the past decades that profoundly transformed international business. Global production in particular has been reshaped, mainly due to the globalization of manufacture and trade, which in turn have enhanced the industrial capabilities of many developing countries and caused the vertical disintegration of activities for many multinational organizations (Gereffi et al. 2005). While production processes were previously kept within the firm, the changing circumstances of the global economy pressured firms to fragment their production and relocate their operations in low-wages countries in order to stay competitive and cost efficient (Farrell 2010, Buciuni et al. 2013).
The choice of consciously relocating selected value chain activities to external parties is defined as outsourcing, while the restructuring of the firm along another dimension, i.e. geography, is called offshoring (Contractor 2010, Manning et al. 2008, Harrison and McMillan 2006) There are of course reasonable motivations for which firms engage in either offshoring and outsourcing. Among them, we find of particular relevance technology accessing, risk sharing, economies of scale achievement, cost savings, and flexibility. Moreover, offshoring and outsourcing can help companies to better understand foreign markets (Contractor 2010)
Nevertheless, these practices have also had considerable negative consequences for the industrial organization of Western countries (Buciuni et al. 2013), among them the increasing number of investments in developing countries and rise in layoffs in developed countries (Harrison and McMillan 2006). However, there are also other more subtle negative consequences that are not taken into consideration as much.
Outsourcing and offshoring initially regarded all these operations that were not intrinsically related to a particular firm’s core competencies. Nonetheless, in recent years, also sophisticated activities, which are much closer to the core competencies of many firms, have been relocated abroad. The relocation of such activities brings us to one other significant downside to consider, and that often goes overlooked, which is the loss of knowledge that results from the separation of core activities from the rest of the operations (Buciuni et al. 2013).
Some authors worry that this situation might soon result in the loss of core competencies too, which were previously kept within the firm’ boundaries in order to protect their competitive advantages (Pisano and Shih 2009). This loss of knowledge is particularly damaging for craft industries, which have made their craftsmanship and specialized know-how the foundation of their success. In low-technology craft-based manufacturing industries, such as furniture and textile, competition is mainly driven by price, so the relocation of production activities abroad to be more cost-efficient has become a mandatory strategy for many firms (Buciuni et. al 2013).
One country that has been able to preserve a unique craftsmanship culture within its economy is Italy. What is special about the Italian economy are the extremely sophisticated know-how skills that craftsman possess and that confer Italian handmade products their intrinsic and appreciated qualities. These skills have been perfected over generations and have reached their level of excellence because of the close cooperation between firms within the industrial clusters that allowed the continuous refinement of their craftsmanship (Porter 1998, Bettiol and Micelli 2013). Given its context-dependence and tradition, it is hard to imagine how such a high level of craftsmanship can be offshored, reaching the same levels of excellence and preserving
its intrinsic qualities and identity. The loss of these competences would represent the subsequent loss of the competitive advantages of countless manufacturing craft businesses. It has been advocated that craftsmanship should instead be exploited and reshaped in order to give it a consistent place in today’s industrial world (Micelli 2011). As previously stated, the problem that this scenario causes is not necessarily the separation of manufacturing activities itself, but the loss of knowledge that results from this separation. Firms must therefore protect their valuable knowledge from becoming globally accessible (Maskell and Malmberg 1999). In fact, anything that can be sourced through global markets is available to any company and does not represent a source of competitive advantage anymore (Porter 1998). It is true that there are some craft-based manufacturing activities that could be offshored to low-wage countries without significantly compromising the quality of the goods, but it is equally true that there are some artisanal competencies that are context-dependent, developed after decades of work on the field, and that are extremely difficult to be replicated elsewhere, reaching the same level of excellence and savoir-faire.
It then becomes reasonable to wonder whether the separation and outsourcing of value-adding activities will have negative consequences for firms’ innovation and core competencies in the long term.
Innovation in high-tech industry
One other issue craftsmanship has to face nowadays is the scarce interest it has received when it comes to innovation potential. In recent years, much of the literature on innovation analysis has primarily been focusing on high-technology (Audia and
Goncalo 2007, Rayna and Striukova 2017) and very few studies deal with the factors influencing innovation strategies in mature low-technology industries (Caiazza 2015, Jansen et al. 2006). For the sake of this research, mature industries are defined as those that have been in existence for generations, have seen few structural changes, have established barriers to entry, and constant research and development investments (Williams et al. 1994). Craft industries fall within the category of mature industries.
In the collective consciousness, craftsmanship possess an image that does not appeal to future generations because it is perceived as lacking innovative potential (Micelli 2011). This is not necessarily true as it is found that, in many craft industries, firms are combining their craft-based core competences with technologies in order to foster innovation. For example, there are many jewelry firms that are using 3D printers instead of wax carving techniques for prototyping. Due to the unprecedented technological progress, craftsmanship will necessarily need to integrate technology and innovation in order to stay afloat (Alexandre et al. 2017).
It is often overlooked that craftsmanship and technologies can actually go hand in hand (Woudhuysen 1996, Alexandre et al. 2017). As explained earlier, these artisanal competences are unique and depend to a high-degree on the industrial and socio-cultural ecosystem in which they have been developed over the years. Their loss due to offshoring and outsourcing is going to represent not only an increase in unemployment in advanced economies, but also a substantial loss for society and cultures alike.
In the light of the scarce interest of innovation analysis towards craft industries, of the fragmentation of global production, the loss of knowledge that can possibly result, and the potential that craft industries still possess to foster innovation, I raise the
question whether the symbiosis between craftsmanship and technologies can represent an opportunity to be exploited in order to achieve new competitive advantages, face the changing circumstances in the global economy, and preserve the indigenous nature of crafts in the future. Using cross-industry multiple case study on four craft-based manufacturing firms, this thesis intends to investigate whether the adoption of technology by these firms has helped their business in any concrete and practical way. Technology can represent a fruitful addition to these firms and their production processes, but it is also known that the human know-how does not always go hand in hand with technology contributions. The ultimate purpose of this thesis is to show whether technology not only can lead to competitive advantages, but can also do so without impacting the authenticity of the goods.
Make in Italy
report
Relevant to the research question is a 2015 report called Make in Italy by Fondazione Nord Est and Prometea, respectively an economic forum think-tank in North-East Italy and a Milan-based financial institution, analyzes the diffusion of technologies within the Italian manufacturing sector. The study focused on the opportunities that digital manufacturing offers to different Italian industries, divided in two different sectors: consumer goods, such as furniture and fashion, for which style, design, and Italian heritage are key features of success and allow to be extremely competitive, and technology, which includes machineries and components, for which technology is the most fundamental feature. The relevance of this study is due to the large sample of manufacturing firms surveyed and to the closeness of the report itself to
the research question of this work. The report focuses on the degree of penetration of the new digital technologies within the production processes. The analysis aims at highlighting how the enhanced processes are capable of improving company performance.
The study conducted a survey on a thousands of firms active in both the consumer and technological sectors and measured the degree of penetration of these new technologies within the production processes. The analysis aimed at measuring how the new digital technologies can enhance firms’ performance in the medium-term, highlighting how a more widespread use of these technologies could have a positive impact on the national productive system. All the firms taken into consideration realized a gross income higher than €1 million in 2013. Nevertheless, there is one limitation to the relevance of the study for this specific research: the study does not distinguish whether the firms taken into consideration in the study belong to industrial districts, and therefore incorporate a type of craft that has socio-cultural roots in their context. Despite this element, the study illuminates on the degree of penetration of digital technologies among many small and medium enterprises and sheds light on the improvements these technologies offer.
The study first analyzed the diffusion of particular technologies within the dataset. The data shows that 25.8% of the surveyed firms use 3D printers or 3D scanners in-house or through external services. Moreover, the diffusion of 3D technologies is more widespread in the jewelry sectors. Regarding robotics, the data shows that 36.7% of the firms use robotics in-house of trough external services. Robotics is more diffused in the technology segment, rather the the consumer goods
segment. The data also shows that 48.3% of the firms use laser and other computer-supported cutting systems.
This preliminary data shows that there seems to be significant adoption of digital technology to support production processes among Italian manufacturing firms. Nevertheless, there still is a large amount that does not exploit the potential these technologies possess. The following part of the study focuses on the reasons why firms are yet to integrate these technologies within their production systems. Of those firms that have not adopted either 3D printers or 3D scanners, 74.7% motivate their choices because they believe that the technologies do not support their business, 13.5% do not know the technologies, and 11.8% are still considering their purchase. The percentages of those that have not integrated robotics are more or less analogous.
The study goes on explaining the benefits that these technologies have brought to the firms. Of the benefits of 3D technologies longed for by companies, 40.2% of the firms state that the awaited benefits relate to the areas most improved by the 3D technologies relate to design, particularly reduction in design time and prototyping, 29.7% of the firms responded that the awaited benefits relate to the acquisition of 3D models of existing objects, 28.9% said the benefits relate to the production of objects with geometries not previously possible. Of the firms that already use 3D technologies, 77.5% responded that 3D technologies help them reduce design and production times, 56.3% said that they helped producing 3D models requested by clients specifically, while 55.6% responded that they help them involve the clients in the design processes.
The study also reports the causes that do not allow or slow down the diffusion of 3D technologies. 43.3% of the respondents agree that the limitations of the materials used by the technologies are among the most significant cause, 42% of the respondents
agrees that also the required investment for the infrastructures is significant. Moreover, those firms that have implemented and use 3D technologies and robotics have shown in the 2000-2014 period a greater capability to grow. In particular, starting in 2012, the profitability of those firms that have invested in 3D and robotics is higher in both ROS (return on sales) and ROI (return on investment). Also in regards of value added, firms that have invested in 3D technologies and robotics have better performances than those that have not invested in those technologies.
From the responses, it appears that 3D technologies and robotics have become part of the competitiveness of many consumer goods sectors and are being used to effectively contribute in both boosting performance and redefining business models. The study also shows that a reinforcement of the technologic endowment would allow to create more value and generate more resources to sustain investments.
The conclusions drawn in the report show that there is great potential for firms that decide to integrate digital technologies in their production processes. Although it does not give an in-depth analysis of the difficulties of the adoption of such technologies or how these technologies have impacted the artisanship and craftsmanship of the firms.
The aim of this thesis is to dig more into the topic and gain more insight into how technologies, despite their successful implementation within production processes, have impacted craftsmanship and how they can operate symbiotically in a craft firm. To fulfill this objective, a multiple holistic case study with four craft firms was conducted.
Methodology
Case study method
Given the nature of the research question, it would be more appropriate to use a case study to address the topic. As Eisendhardt (1989) wrote, “case study is a research strategy which focuses on understanding the dynamics present within single setting.” Since very little is known about this phenomenon, theory building from case study is most appropriate because this research method does not rely on previous literature (Eisenhardt 1989) as much as other methods. The case study design is more suited for this type of study as it investigates a phenomenon within its real-life context (Yin 2009). The research question aims at investigating the consequences that follow technology adoption and the impact of this adoption on the authenticity of goods and on the crafts themselves. My objective is to highlight whether there are patterns or any other common approach to technology adoption that future research can analyze in a quantitative and systematic manner. Acknowledging that the impact on the production processes of technology, the products’ features and aesthetics will be taken into consideration, the description of those elements is best expressed by means of a narrative, rather than quantitative measures, a narrative being “an account of an experience that is told in a sequenced way, indicating a flow of related events that, taken together, are significant for the narrator and which convey meaning to the researcher” (Saunders et al. 2009).
There is not a significant amount of literature that covers the consequences that technology can have on craftsmanship, so the main objective is to expand the existing limited theoretical framework with some real-life examples. This work represents an exploratory study as it aims at illustrating the conclusions of the cases and developing a preliminary exhaustive understanding of the matter at hands. An in-depth holistic case study with multiple firms can provide valuable insight to understand whether or not technology adoption has had any concrete outcomes for the firms.
The research question resembles a “yes or no” type of question, but the answer is less trivial than it sounds. The answer to the question does not end at the yes or no, it aims instead at analyzing also the wider consequences that technological adoption could have for the goods themselves. Technology and crafts could be theoretically combined together, but can there be a symbiosis between the two without negatively impacting the good themselves? These implications cannot be thoroughly observed by quantitative analysis, but rather emerge in a narrative, through discussions, conversations, and interviews, because they consist of personal opinions and observations on the matter. In conclusion, due to it being an exploratory study, the work can be best delivered by means of a narrative (Yin 2009).
Which method did you use and why
To achieve my research objectives I chose to use interviews because of their characteristics to provide richer insights, in this case, on the actual outcomes of technology adoption in the production processes, which could not be observed better through any other research method. The research method adopted falls under the mono
method category as only interviews and no other data collection technique was carried out (Saunders et al. 2009). Given the nature of the answer I am seeking, such as impact of technology on authenticity of the goods produced, interviews seemed to be better suited to gather this type of information. Also, acknowledging my research question, it seems that interviews would be more appropriate because the information I seek comes from personnels’ impressions, opinions, and judgement, which cannot be better collected by any other method. Interviews are most suitable to address this research question because they allow a more thorough understanding of the dynamics and the complexity of the issue at hand.
Description of sample/case study
A multiple holistic case study with four firms was conducted in order to observe what kind of outcomes the adoption of technologies by craft-based firms has had, whether these technologies have impacted the authenticity of the goods, and whether there has been a fruitful symbiosis between technology and craftsmanship. The number of firms respects Eisenhardt (1989) range of sufficient number of cases, which will allow to generate a decently complex theoretical framework and potentially achieve data saturation. The choice of the research design fell on the multiple case study because the evidence gathered with interviewing multiple firms is more compelling and the whole study becomes more robust. Given that the cases were conducted between two firms belonging to one industrial district and two belonging to one other, this strategy would ideally allow to limit potential biases and draw comparisons.
As previously stated, in order to gain the most insight as possible, I approached different firms belonging to different manufacturing fields and industrial districts as to obtain a broader perspective on the subject matter. The firms interviewed belonged to the goldsmith district of Vicenza, in the Veneto region of Italy, and to the textile district of Prato, in Tuscany. The cases have an holistic approach of the companies analyzed as the size of the firms is relatively small and no sub units could be identified (Yin 2009). Given that the data was collected at a specific point in time and that the time constraints would not allow to conduct an observation of the phenomenon over time, the study is intended to be cross-sectional. Considering also the little investigated nature of the phenomenon and the limited theory available, this study aims at taking advantage of inductive reasoning: by exploring the phenomenon and making observations, my main objective is to reach valid conclusions in order to develop preliminary knowledge on the subject matter, to be possibly integrated with the existing theory.
Respondents selection
The in-depth case study was conducted with four firms active in craft industries which embody, or whose industry has traditionally embodied, a high degree of craftsmanship in their production activities. This number of firms has been chosen mainly due to time constraints, but it allowed nevertheless to reach constructive and insightful conclusions.
The cases were selected on the basis of purposeful sampling in order to answer my research question and meet the objectives (Saunders et al. 2009). The goal was to choose cases which could potentially replicate or extend the existing theory. Given the
little number of respondents, the sample cannot be considered fully representative. Nevertheless, the cases are information-rich and enabled to formulate a preliminary answer to the research question. Before getting in contact with the firms, certain criteria, which the firms needed to respect, were laid out for their selection. The selected firms ideally had to: (i) belong to industrial districts whose manufacture embodies traditional crafts with roots in a socio-cultural context; (ii) in couples of firms, belong to similar industrial districts; (iii) have incorporated technology in their production activities, possibly with different outcomes; (iv) be of comparable size, both personnel- and financial-wise.
In order to get in contact with the firms, I have contacted Confartigianato Italia, the largest and most representative Italian organization dealing with craftsmanship and small- and medium-sized enterprises, and a few local chapters of Confartigianato throughout the Country. With their large networks of associates, they provided me with contacts of firms that respected the aforementioned criteria for selection. In particular, Confartigianato Vicenza and Prato were able to provide me with contacts of a handful of firms which qualified as craft firms and are active in the hand-made manufacturing field. Moreover, obviously, the firms had incorporated technology to support their production process.
The two jewelry firms from Vicenza both belong to the goldsmith district of Vicenza in Italy, they have incorporated 3D printers and other computer-aided design systems in their production, and are of comparable size. The two textile firms from Prato also belong to an established industrial district, have incorporated production assistance softwares and production machinery technologies in their production processes and are also of comparable size.
The choice for these firms is most appropriate not only because they respect all the selection criteria, but also because they have combined their traditional savoir-faire with cutting edge technology and were able to market innovative products following the secular traditional manufacture characteristics of their socio-cultural context. Also, the sampling is heterogeneous due to the firms’ belongingness to different manufacturing sectors, which, despite these being completely different, represents nonetheless a strength (Saunders et al. 2009).
How do you get access to and approach these cases/
respondents?
While the contacts with Confartigianato Vicenza and Prato occurred via email, the contact with the companies occurred via telephone. During this preliminary communication I explained who I am, the purpose of my research and the outcomes I hope to reach. On this first call, the companies and I scheduled the interviews, which also took place over the phone. The interviews were conducted with the entrepreneurs of the firms, who are both presidents and CEOs, in Italian and translated verbatim in English.
Describe the data collection procedure for each method
The interviews lasted for an average of one hour each. The first part of the interview was conducted in an open-ended way, which allowed to discuss the educational and professional background of the entrepreneurs, the features of the firm,
size, clients, and the financials. I then asked questions related to technology adoption, whether advanced technologies were integrated in the production processes, and the reasons for this integration. The discussion then covered the consequences that the technology adoption has had for the firms, whether it had impacted the craftsmanship of the goods, enhanced the performance of the firms, and whether the technology could exist in symbiosis with craftsmanship, without impacting the authenticity of the goods.
Regarding the units of analysis, the successful integration of technologies within craft firms could be estimated by changes in economic and production performance. Nevertheless, while changes in economic and production process performance could be observed easily, the impact of technology on the authenticity of craftsmanship cannot be examined in a direct fashion as there are no objective criteria to measure it. To estimate this feature, I relied on the opinions of the business owners regarding the authenticity of the goods themselves. Other follow up questions mainly dealt with other technologies taken into consideration for adoption but were later not adopted, and the interviewees’ own opinion on the future of craftsmanship in a business environment increasingly moving towards digital technology. During the interviews, my aim was to predominantly collect qualitative data.
Strengths of the research design
Given the limited size of the sample and the choice of only one type of craft, the results are generalizable only to a close extent. This limitation will be discussed later on. On the other side, the newness and lack of research on the topic may lead to interesting and valuable insight that could prove useful to entrepreneurs and scholars alike. In
order to confer construct validity to the research, a detailed theoretical framework to define all concepts and identify the operational measures that match the concepts (Yin 2009) was provided. Also, the units of analysis to draw the conclusions were previously stated in order to provide a sufficiently operational set of measures. External validity can be conferred by covering the broad theoretical issues of the impacts that technology adoption can have on craftsmanship and generalizing the set of case studies to the theoretical framework previously provided (Yin 2009). To confer reliability to the study, I documented all the steps I followed in the case and make them as operational as possible, in order to make it easier to repeat the work and reduce the biases.
Industrial context of the case studies
As previously stated, the the firms taken into consideration for the analysis belong to the goldsmithing industrial district of Vicenza and to the textile one of Prato. Industrial districts in Italy have long been considered at the heart of the Italian economic growth and success, especially for the Made in Italy sectors of manufacture. Industrial districts have established their competitiveness on flexible specialization: small and medium firms, despite not being able to exploit economies of scale like larger firms, could take part in an extended system of labour division, which allows to share knowledge within the district (Corò and Micelli 2007).
Some believe that districts are are incapable of staying competitive in the new global context because of their fragmented structure and specialization in the traditional sectors. Some others, nonetheless, believe that the districts are capable of adapting effectively to new contexts, thanks to their creativity, entrepreneurship, and know-how (Ottati 2009). The districts also show a distinct export orientation, fueled by the international appeal of the Made in Italy products.
Industrial districts are known for their flexibility, adaptability to change, and technology adoption and they rely particularly on these features to stay competitive in nowadays increasingly changing economic context. Today the importance of the industrial districts, especially in the Italian economy, is crucial to understand whether they can keep their dynamism in the new context of globalization (Ottati 2009). The next sections will explore in detail the nature and the competitiveness of the two industrial districts taken in consideration.
The goldsmithing district of Vicenza
The Vicenza gold smithing industry in the Veneto region of Italy includes the city of Vicenza, its nearby areas, and the cities for Bassano del Grappa and Trissino. Its long tradition in jewelry making arose from the entrepreneurial venue of many firms (De Marchi et al. 2014). The production of the firms in the district is heterogeneous: it ranges from high-end jewelry pieces to semi-finished products, such as chains and mountings. In the district there are a limited number of medium firms and many small ones, in many cases craft-based and highly specialized. The main export partners are the Middle East, the United States, and Japan. The area boasts a goldsmithing tradition that traces its origins back to the Paleoveneto era in the 1st and 2nd century AD and to the Longobards. The first recognition of the flourishing goldsmithing practice in Vicenza occurred in 1399 with a public document that acknowledged the existence of these activities and established the goldsmithing guild in the city. This tradition strengthened consistently over the years and made the goldsmithing district of Vicenza one of the most internationally recognized industrial districts.
During the 1980’s and the early 2000’s, the industrial district achieved its maximum success in terms of production and exports (De Marchi et al. 2014) thanks to the diversification of its product range. Moreover, during this time, an increasingly number of companies started investing in machineries and mechanization. Vicenza is embedded in a lively industrial area, close to where other fashion and mechanics industrial districts are located and also close to important institutions, such as VicenzaOro, the most prestigious jewelry fair in Italy and one of the most famous in the world, which have attracted many foreign buyers (De Marchi et al. 2014). Since the
beginning of the 2000’s, the district opened preponderantly towards international markets.
In the 2000’s, a significant number of firms went out of business as the district faced a major crisis, the causes of which are to be found in the strong competition coming from Thailand, Turkey, and China, and also by changes in global demand (De Marchi et al. 2014). To better tackle the consequences of the crisis, the district responded by delocalizing production or importing components, but this strategy proved to be ineffective. In order to address the globalization crisis, a diverse set of upgrading strategies were implemented by resilient local companies (De Marchi et al. 2017). As part of these strategies, firms are adopting different machineries that helps prototyping, supporting the production, being cost efficient, and enhancing the economic performance.
The district’s strengths lies in the high quality of its production, flexibility of the district itself, widespread knowhow, and the presence of culture and history that permeates the products. These elements make the goldsmithing district of Vicenza unique and are precisely these features that firms are exploiting in order to stay afloat in today’s globalized markets.
The textile district of Prato
The Prato industrial district in Tuscany extends in 12 municipalities and it includes more than 8000 firms. Prato represents one of the major Italian industrial districts and one of the most important production site for textile and yarn worldwide. Firms produce textile for the fashion industry, for furniture, and knitwear.
Back in the 13th century, the presence of the Bisenzio river and of a natural slope in the valley allowed the construction of watermills, around which the medieval textile industry initially developed. Throughout the years to come, the presence on the territory of more than 100 watermills, a complex hydraulic system, and an entrepreneurial mercantile context fostered favorable conditions for the establishment of the industrial district. In the 19th century, the perfection of the spinning machines helped Prato’s products to reach global markets and the textile activities progressed steadily ever since.
Other major developments in the district occurred after World War II. In the 1960’s, the renovation of the machineries and technologies and the use of qualitatively superior materials, such as cashmere, silk and virgin wool, allowed the district to diversify towards high quality articles. The district continued to grow even in the 1990’s thanks to the recovery of competitiveness in the international markets.
The globalization of the sector has increased the opportunities but it has also placed the district in a more competitive arena along with emerging economies producing low-cost goods. The recent increasing competition, coming especially from developing countries such as China and Turkey, has caused the weakening of the historical textile district (Ottati 2009). In order to stay afloat in the light of the ever-changing context of globalization, some manufacturers decided to upgrade their products through major investments in innovation and fashion content (Ottati 2009).
Over the year the firms in the district have showed a noteworthy capability of following and interpreting market demands and exploiting different opportunities. Despite some believe that the district is incapable of keeping their competitiveness in the current global context, others think that the district will find a way to adapt
effectively to this new context, thanks to the widespread know-how and entrepreneurship (Ottati 2009). In recent years there has also been a shift from the production of physical and human capital-intensive fabrics to manufacturing labour-intensive garments of low quality. This trend pushes the local economy towards competitiveness, characterized by the search for innovation, quality, and the intangible content of value of the goods (Ottati 2009). It is in fact through digital technologies that firms in the industrial district of Prato are trying to keep and strengthen their competitive advantages.
Findings and discussion
Case studies
As stated previously, the firms selected had to respect a number of criteria for selection. The firms belong to either one of the aforementioned districts and are all small-sized, which is consistent with the high division of labor that traditionally characterizes the model of the industrial districts (Buciuni et al. 2013). The firms interviewed are namely Ritorcitura Vignolini Snc and G.T. 2000 Srl in the textile district of Prato, and Micro Valle Srl and Costa Srl in the goldsmithing district of Vicenza. The interviews were all conducted with the presidents and owners of the firms. Ritorictura Vignolini’s CEO and president, Moreno Vignolini, has been working in the textile industry for more than 20 years. Andrea Belli, CEO and president of G.T. 2000 has been working for over 40 years in the textile industry, has been an artisan since 1975, and before that was an employee in a woolen mill in Calenzano, in the province of Florence. Stefano Zanotto, CEO and president of Micro Valle, has 20 years of experience in the goldsmithing industry and started off as a bench jeweler, an artisan that uses a combination of jewelry-making skills to make jewelry. Mr. Zanotto has won several national and international prizes, among which the prestigious Roland prize. In 2015 he was awarded the Entrepreneur of Excellence by Confartigianato VIcenza and in 2017 he took part at the Job&Orienta, a major exhibition on orientation, education, training and work. Pietro Costa is the president and CEO of Costa Srl. He graduated from the
mechanic institute and immediately started working in the mechanics sector of the goldsmithing industry and at 30 years old he started his own firm. He also possesses a decennial experience in the field.
Ritorcitura Vignolini produces yarn on behalf of third parties and their main activities relate to spinning and weaving. It serve firms that produce fabrics and yarns and their products are the working basis of fabrics and knitwear. Ritorcitura Vignolini, with their experience, know-how, continuous investment in research and development, are one of the most active and highly specialized commission plants in Prato. G.T. 2000 is specialized in sectional warping, which refers to the preparation for weaving, of innovative and technological fabrics. G.T. 2000 has also recently carried out an innovation regarding the arrangement of flat yarns without torsion, which gives a special effect to garments. For this reason and their vast technology adoption, G.T. 2000 also qualifies as a truly innovative company within the district.
Micro Valle Srl is a jewelry company that operates in the Vicenza territory, one of the centers of the worldwide goldsmithing industry. It offers services ranging from design and modeling to microfusion for goldsmithing. Microfusion is a process that aims at creating the desired object through wax carving and then make a plaster cast, which allows for the liquid metal to be poured in. To carry out this process, Micro Valle has adopted fusion and control technologies that eliminate every issue in the fusion process. It also makes use of computer-aided design and computer-aided manufacturing (hereafter referred to as cad and cam) to assist its prototyping and design activities. Finally, Costa is a goldsmithing firm that produce closures and semi-finished highly-detailed products. They produce on behalf of other producers, both brands and other suppliers. They focus specifically on closures and all other technical products that
possess a movement. Their works is more mechanics-specific rather than decorative. All the firms interviewed also benefits from their location in an established and well-known industrial district, that allows to work in a production chain and knowledge exchange.
Results
The analysis of the findings resulted in one main finding. The technology has become fundamental within all the manufacturing processes and offers craftsmanship both support and endless opportunities of improvement. Further on, the consequences of technology adoption and the entrepreneurs’ considerations of the impact of technologies on craftsmanship will be analyzed.
What technologies have been adopted
As previously observed, all the companies interviewed have adopted and integrated digital technologies within their production process. The scope of this initial phase is to discover what kind of technologies have been adopted. Ritorcitura Vignolini has adopted a hollow spindle twisting machine for the production of fancy yarns; a hollow spindle fancy spinning machine, suited for the production of lightweight, bulky yarns; a hollow spindle and needle-head spinning machine with double draft for the production of classical and fancy yarns; roving frames to produce a wide range of raw materials; and process control instruments. G.T. 2000 has adopted different kinds of warping machines for warping of samples, both for small and medium productions, even with low number of orders. Micro Valle has first adopted a 3-axis cad-cam printer
to produce the first tridimensional models. In 2006 they adopted a 4-axis cad-cam printer with an integrated rotary system. The difference between the two printers is that the 4-axis one adds the rotary mechanism to the already existing Cartesian-based way of printing. It also adopted a stereolithography printer. Costa Srl has also adopted 3D cad-cam rapid prototyping.
For both sectors, these technologies represented a radical introduction in the firms. The entrepreneurs of both G.T. 2000 and Ritorcitura Vignolini’s CEO stated that up until 10 years ago, their activities in the textile value chain were completely handmade. Craftsmen and artisans were at the center of the production process and their dexterity, sensibility, and savoir faire were fundamental. The same applies for the goldsmithing firms. The lost wax casting has also been handmade for centuries and these rapid prototyping machines allow to speed up the whole modeling processes at a pace the industry has never seen.
What the reasons behind the technology adoption are
Once I investigated what kind of technologies had been integrated, the reasons behind technology adoption were also analyzed in order to observe whether the technology was integrated due to personal ambitions of the entrepreneurs and a genuine desire to integrate them or due to market necessities and the need to stay competitive. Ritorcitura Vignolini has adopted them because they strongly believe that the technologies have helped them improve the service and product offer. G.T. 2000 has adopted the technologies because of the personal ambition of the entrepreneur and his
willingness to continuously improve as a firm, which respects his personal philosophy of being forward-looking. As a matter of fact, G.T. 2000’s CEO said,
“I have always been inclined to live the development, the change, and I believe I have achieved many things that my colleagues have not.”
Micro Valle chose to adopt them not because its competitors have done so, but rather because they believe that microfusion represents one fundamental way to create jewelry and particularly unique and artistic pieces, to which metal molds cannot come close. For Costa Srl instead, being more in the mechanical end of the jewelry spectrum, technology adoption is purely necessary as they would not be able to achieve nearly the same results without it.
Has the technological component negatively influenced the artisanal one?
Since those firms are in craft industries and traditionally rely heavily on dexterity and artisanal know-how, the impact that these technologies can have on the degree of craftsmanship that goes into the products was extremely worthy of attention to answer the research question. When asked whether the technological component can negatively affect the artisanal one, Ritorcitura Vignolini replied that the artisanal component is still fundamental in their field. The CEO believes that it is necessary to
“Make it [craftsmanship] current through the new technologies, maybe with control instruments, process control instruments, qualitative control instruments, and traceability and production advancement control instruments”
He believes that technologies help their craftsmanship to be more innovative and keep up with the times. G.T. 2000 shares a similar idea as they strongly believe that all craftsmen’s qualities can stay even after adopting the most innovative and radical technologies, because the human presence that manages the technology represents added value. The human presence is still fundamental because their primary raw material, the fiber, is sensitive to countless factors, from temperature to storage conditions, and therefore you need human sensitivity to work proficiently with it. As the CEO says,
“My presence of adaptability of the technology to the contingent situation of that day is fundamental.
”
Regarding the topic, Micro Valle does not hide the fact that those technologies have changed the artisanal components of the goods, as many steps in the production process that were previously carried out by craftsmen are now completed by the machines. Nevertheless, they think that the technological component has not negatively impacted the authenticity of the goods because the design of the pieces is carried out on the basis of artisanal knowledge and experiences specific to jewelry-making. In regards to the artisanal component, Micro Valle’s CEO stated that,
“With the new technologies, we have put all of our artisanal jewelry-making experience using the new technologies, but for us it was not that ‘I take craftsmanship out and I am technologic’. They were an accelerator of our competences, our visions, our knowledge.”
Costa Srl shares a similar opinion as they also believe that nowadays technology is determinant, but craftsmanship is still relevant whenever it becomes necessary to manually work on the pieces.
Have there been any improvements in the economic performance?
The impact on craftsmanship and on the authenticity of the goods is certainly of utmost importance for understanding whether there can be a positive symbiosis between crafts and technology. Nonetheless, the economic results after technology adoption should be observed thoroughly as well: the symbiosis could have not taken place unless positive economic performance was achieved.
In all cases, both for the textile and goldsmithing sectors, the technology have brought economic benefits and enhanced the companies’ performance. In particular, for the case of G.T. 2000, the technologies have helped them to survive through the turmoil caused by the 2008 Financial Crisis. In the case of Micro Valle, the new technologies sped up the production to such a great extent that gave them the wrong impressions that their business was not doing well, while in reality they were only completing their orders at an incredible fast pace. The technologies brought such drastic changes in speed of production that puzzled the firm itself.
Have there been any competitive advantages?
Beyond the simple enhancement of economic performance, there are also other benefits and competitive advantages related to the production process itself to consider.
Ritorcitura Vignolini improved the traceability of the productive process, solved issues of downtimes, and classification of articles. The CEO stated that,
“There is a better qualitative control that was previously done differently and now it allows us to do it in real time and in a constant manner.”
G.T. 2000’ CEO stated that their technology allowed them to carry out orders that are much more fragmented. He argued that,
“With the same personnel, maybe less, we are able to carry out the same production methods of 20 years ago with much more fragmented orders. [...] With the older machines, I would completely be out of business”
Some clients ask for an amount of thread with different colors and thread structure. It would have not been possible to produce this thread with the previous generation of technologies or purely by hand, because it is too much of a lengthy process and the orders have become too fragmented.
Regarding the goldsmithing firms, the cad-cam printers allow Micro Valle to replicate without difficulties identical prototypes, while the stereolithography printers has allowed them to work with undercut pieces, with very limited thickness and whole, hollow shapes. Costa Srl reports similar advantages as the technologies allowed for a fast reproducibility of the objects and reduced times in production processes. It also allowed to constantly modify the pieces and go back to the computer-aided design for changes any time. Costa Srl’s CEO argued,
“If you hand-make a piece, you cannot modify it anymore. That is it. The versatility that the technology gives me is fundamental.”
Have any negative sides from the technology adoption been encountered?
While definitely proven beneficial, it was plausible to ask whether technologies brought also any downside along with them. While Ritorcitura Vignolini has not encountered any difficulty in technology adoption, G.T. 2000 observed that the most significant issue in the technology adoption and implementation is the professional culture of the craftsmen. They claim that the professional culture was the greatest source of resistance, as it is complicated to make craftsmen understand that their dexterity and savoir faire is not as fruitful as it used to be. G.T. 2000’s CEO argued,
“Because when you tell a person that has been working with a machine for 30 years and that had a lot of experience, and you tell them that the dexterity that they used earlier is not useful anymore, they have to learn to use the technology and change the culture and mentality.”
Nonetheless, they are confident that the willingness to reshape the culture in light of these changes exists. Also Micro Valle did not encounter any downsides subsequent to the technology adoption. The CEO argued,
“From our point of view, the adoption of these technologies has not brought any negative effect.”
On the other hand, Costa Srl claims too that one difficulty they faced was,
“Transforming the people that were used to work with manual craftsmanship to working with technological craftsmanship.”
Have there been any difficulties in implementation?
Given the complexity and sophistication of these technologies, it was reasonable to wonder whether their implementation within the firms occurred smoothly or encountered any difficulties. Ritorcitura Vignolini did not encounter major difficulties as they were helped by an engineer that followed closely the technology implementation. The CEO stated that,
“It is a technology that is already known by our employees and they are obviously able to carry out the work normally as if the machinery was the one used 10 years ago because from an instrument point of view it is the same. There was no need to have any sort of training regarding the knowledge of the softwares”
G.T. 2000 regards as difficulty in implementation only the fact that these technologies are extremely expensive and represent major investments for the small and medium sized firms in the districts, as most of them are undercapitalized. As the CEO discussed,
“The innovations that cost are perhaps liked by everybody, but many stop because they do not have capital”
Micro Valle faced necessary trial times and the optimization of the processes following the adoption. The CEO argued that these steps
“Are normal for the adoption of new technologies.”
Costa Srl stated the high costs of the machineries, but not any particular issue in implementation. Talking about the implementation of sinterization, the CEO stated that,
“This technology exists in our field, but few are using it because it is very expensive, and it allows you to do very complex things that you could not make by hand.”
