The systems integrating firm: entrepreneurship, innovation and vision

This paper illustrates the successful story of a SME that exemplifies the case of the systems integrating firm. A series of strategic and courageous decisions enabled Tecnomatic to rapidly evolve along the value chain: from a mere special machine tools supplier to partner of leading European and US automotive firms. As from the 1980s, cost cutting strategies and a more competent supplier base have pushed and enabled manufacturers to extensively believe in outsourcing. More recently, first-tier suppliers (both component manufacturers and machine tools suppliers) have also adopted such strategy. By pursuing outsourcing strategies, both manufacturers and first-tier suppliers have lost important design and manufacturing capabilities. Following a visionary entrepreneur, Tecnomatic started a capability acquisition process that enabled it to fill the capability gap left by manufacturers and first tier suppliers. Through a combination of focused acquisitions, training policies, and research investments in cutting edge technology, Tecnomatic has become a key partner for the development and manufacturing of automated plants of complex components for several sectors, e.g. automotive and domestic appliances.