Design, communication and competitive advantage in the Italian furniture districts

Investing in design is considered the right strategic solution for small and medium enterprises (SMEs) in industrial districts to face globalization successfully. Scholars and consultants stress that SMEs should renovate their competencies beyond manufacturing skills and, most importantly, transform their approach to design-based products. The paper discusses an approach to design that goes beyond the aesthetic side of the product and links design with the distributed innovation paradigm (networks of creativity). The debate on design and its link with value creation is important for the analysis and understanding of the transformation in district firm models within the framework of the intangible economy. Based on a theoretical review focused on design and quantitative research on about 100 firms in six main Italian furniture districts, the paper analyzes the strategies of district SMEs specialized in furniture in order to outline alternative models in design management.