On the one hand, the quality of management depends on the size of firms; small firms, for example, have more difficulties in attracting the best managers. On the other hand, managers determine firms’ performance, including their ability to grow. 25. Small firms around the globe are usually family-owned.
In Italy, however, their managers are mostly selected within the local market and often coincide with the firms’ owners or with their relatives. Family firms and small firms typically rely less on good managerial practices, such as team working, performance-related pay, or workers’ participation in the decision making process.