EXPLORING BUSINESS LONGEVITY IN ITALIAN SMES: EARLY FINDINGS

This study examines the key factors influencing the longevity of Italian SMEs, a critical yet underexplored issue in strategic management. Given that SMEs account for a significant portion of the economy but face high failure rates, understanding the determinants of their survival is essential. A quantitative approach was adopted, analyzing data from 111 Italian SMEs across various industries. The study utilized a structured questionnaire to assess constructs related to finance, innovation, governance, performance, and competencies. To evaluate the proposed relationships, Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied using SMART-PLS 4.1, a robust technique suited for small sample sizes and complex models. The results do not confirm any direct relationships at p < 0.05, suggesting that SME longevity is shaped by multifaceted and interdependent factors. However, finance shows potential relevance at p < 0.1, while innovation and performance indicate influence at p < 0.2. These findings highlight the limitations of traditional static models like RBV and underscore the relevance of Dynamic Capabilities Theory (DCT) in explaining SME survival. Future research should refine methodological approaches, expand the sample, and incorporate longitudinal analysis to track long-term trends.