Insumos Importados, rendimiento de empresa y características de las cadenas de suministro

In this document, we examine whether the "network closure" in the supply chain can explain the observed heterogeneity in the performance of importing companies. Using unique panel data on trade flows between beef farms in the Italian region of Piedmont, we analyze a sequential supply chain characterized by the coexistence of two production inputs: domestic cattle, of lower quality but traditional and less risky, and imported cattle, of higher quality but exposed to greater risks and more complex to manage. Our findings indicate that trust and mutual cooperation, measured through network closure (i.e., the proportion of dyadic productive relationships of a company with other companies that the existence of common third-party commercial partners transforms into "closed" triads), enhance the performance of farms adopting the production system that utilizes imported inputs. On the other hand, network closure does not affect the performance of farms using more traditional technology. Therefore, trust among agents in a supply chain can promote the use of higher-quality imported inputs.