Post by Università Bocconi

#Deglobalization is often treated as a new shock. But for many firms, it has already happened before. In the late 1930s, Italian small and medium-sized #enterprises were forced to operate in a world of closed borders, rationed inputs, and political pressure. A new study by Assistant Professor Valeria Giacomin and PhD student Francesco Romagnoli examines how these #firms survived the reversal of #globalization and what their experience can teach companies facing today’s fragmented global economy.       Between 1936 and 1943, Italian firms were forced to operate under autarky, facing restricted imports, controlled prices, and severe shortages of raw materials. Even industrial language was steeped in nationalist rhetoric. The authors traced the experiences of 98 firms seeking financing from the Italian Furniture Institute, uncovering a landscape of uncertainty, improvised strategies, and creative responses, where each document reflects companies’ efforts to survive under extreme constraints. In short, deglobalization is not an abstract concept. It is the way a company turns to its warehouse and realizes that what used to come from abroad is now nowhere to be found. It is the choice between laying off employees or reinventing oneself. It is a matter of life and death for a company. This historical lens helps interpret current debates on #Deglobalization and #EconomicResilience.       #SAIWA, then a small, almost artisanal producer of niche biscuits, responded to rising costs and collapsing international demand by transforming itself into a mass-market brand focused on domestic consumers. This rapid strategic pivot restored profitability and doubled sales, while preserving elements of its refined identity, showing how continuity and change can coexist in times of crisis. #Ducati followed a different path. Rather than simply reshaping its product portfolio, the company embraced a strategic narrative, positioning itself as a pillar of Italy’s technological self-sufficiency. By aligning its identity with the regime’s political and industrial goals, Ducati gained access to funding and laid the foundations for a lasting industrial reputation.       From these stories, the study extracts broader lessons. Survival depended not only on productive capacity but on the ability to reframe markets, adapt narratives, and align with shifting political and economic conditions. #SMEs that endured were those able to pivot toward locally oriented demand and leverage domestic brand loyalty. Those who failed to adapt often disappeared. By connecting past and present, this research offers insight for firms facing today’s fragmented #global landscape. The experience of Italian SMEs suggests that resilience lies in flexibility, strategic repositioning, and the capacity to redefine purpose when external conditions change. In this sense, history becomes a tool for understanding how businesses can navigate uncertainty and survive systemic shocks.