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Please cite this article as: Francesco Vidoli, Jacopo Canello, Controlling for spatial heterogeneity in nonparametric efficiency models: an empirical proposal, European Journal of Operational Research (2015Research ( ), doi: 10.1016Research ( /j.ejor.2015 This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. ACCEPTED MANUSCRIPT A C C E P T E D M A N U S C R I P T AbstractThis paper introduces an original methodology, derived by the robust order-m model, to estimate technical efficiency with spatial autocorrelated data using a nonparametric approach. The methodology is aimed to identify potential competitors on a subset of productive units that are identified through spatial dependence, thus focusing on peers located in close proximity of the productive unit. The proposed method is illustrated in a simulation setting that verifies the territorial differences between the nonparametric unconditioned and the conditioned estimates. A firmlevel application to the Italian industrial districts is proposed in order to highlight the ability of the new method to separate the global intangible spatial effect from the efficiency term on real data.

This article assesses how the reshoring of manufacturing activities by micro and small enterprises (MSEs) affects the performances of co-located subcontracting networks and the reconfiguration of global value chains (GVCs). We utilize quantitative microdata of Italian MSEs operating in the clothing and footwear industries during the 2008–2015 period. Empirically MSE reshoring does not have a significant impact on domestic subcontractors’ birth rates and survival chances, whereas it is positively associated with their productivity growth. Most MSEs in our sample adopt a dual sourcing strategy, expanding their global production networks while preserving their local supply base. Local and global production networks are not two alternative paradigms of industrial organization; they can be complementary and mutually reinforce each other.