The challenge of sustainability: the Terranova case

In the first part of the paper, it is observed that the adoption of a sustainable development model is based on the ability to innovate, as it entails the redefinition of strategies and operational processes. Moreover, it requires the restructuring of relationships within production chains and between businesses, society, and institutions. The paper then provides a diachronic perspective on the growth and diffusion of small and medium-sized enterprises (SMEs) in Italy, with particular attention given to SMEs specializing in high-quality production within niche sectors. It is argued that these organizations can serve as a virtuous model of cohesive enterprises when they operate in synergy with local communities and institutions. Due to their small size, they are unable to internalize many strategic functions as large companies do; therefore, they must rely on the market and aim to reduce transaction costs. Their existence depends on relationships, and they must constantly safeguard their reputation, which can only be built through virtuous behavior. As a result, sustainability becomes a necessary requirement for their operations. To support this thesis, the case study of Terranova—a software company that has established itself in the Energy and Utilities market through continuous research and innovation in digitalization processes—is presented. The paper concludes with some final considerations.