The export competitiveness of Italian coffee roasting industry

Abstract

Purpose The purpose of this paper is to analyze the competitive position of Italian roasting firms in the international market, thus developing a multidimensional framework for measuring industry export competitiveness. Design/methodology/approach Considering that the objective is to evaluate the export competitiveness of Italian roasting firms, the author chooses “positive” and “ex-post” indicators, combined in a multidimensional and a multivariable framework. The two dimensions of competitiveness implemented are competitive performance and competitive potential; the author used four indices to evaluate the first dimension (export market share, net export share, net export index, revealed comparative advantage) and three indices for the second dimension (unit export price, relative quality index, relative export growth). Findings The evolution of the international context, with the emergence of new competitors and the spread of coffee consumption worldwide, creates new opportunities but also new challenges for Italian companies. In fact, both competitive performance and competitive potential have been worsening since the second half of the early twenty-first century because of the lack of innovation. A mix of external and internal factors explain this lack. Practical implications In order to recover their international competitiveness, firms should leverage on the combination of “traditional elements”–such as Made in Italy effect and the rich technical know-how, depending on their long tradition in the espresso coffee market niche–with “innovative elements,” depending on new marketing skills and competences; these new elements could be developed internally or, most fruitfully, acquired externally, through collaboration with other firms. In this way, Italian businesses could improve the relative quality perceptions of their offering. Social implications Coffee roasting industry in Italy is a significant component of the Italian economic system and it contributes to the development of the Made in Italy abroad. Therefore, an improvement of its export competitiveness could be beneficial to the whole domestic market. Originality/value This paper constitutes the first attempt to study the evolution of the coffee industry in regards to the international competitive landscape. This is quite surprising, considering that coffee is one of the main segments of the food and beverage industry; it is the second most important commodity exchanged worldwide after oil and the third most popular beverage after water, tea and carbonated beverages. Then, the analysis of export competitiveness is developed combing two main research streams: the industrial organization literature and the strategic management literature. Moreover, this paper offers a methodological framework useful to measure export competitiveness also in other industries and countries.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 43 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.