Starting from structural dwarfism to investigate factors of economic-financial performances of Sicilian farms: evidence from a PLS-SEM analysis

Abstract

Italian agriculture remains among the most prosperous in Europe, despite the persistent issue of “structural dwarfism,” characterized by small farm sizes, managerial inefficiencies, limited innovation, poor low digitalization, and limited restricted access to foreign markets. In Sicily, these challenges are compounded by institutional and infrastructural constraints, contributing to lower productivity compared to other Italian regions. This study investigates through a questionnaire administered to 232 farmers how managerial and strategic factors influence the financial performance of Sicilian agricultural enterprises. The results highlight that Entrepreneurial Orientation (EO) is a key driver of business success, emphasizing also underscoring the importance of productivity, risk tolerance, market awareness, and adaptability. Marketing capabilities also play a crucial role in enhancing financial performance, while digitalization contributes significantly to efficiency, productivity, and sustainability—factors essential for the modernization and long-term competitiveness of the agricultural sector.