Keywords
SMEs
firms’ bankruptcy
internal and external causes
firms’ bankruptcy
internal and external causes
How to Cite
Sgrò, F., Palazzi, F., Ciambotti, M., & Gabbianelli, L. (2022). Causes of corporate crisis: an investigation on Smes to support the learning process. Piccola Impresa Small Business, (3). https://doi.org/10.14596/pisb.2856
Received 2021-01-25
Accepted 2021-05-30
Published 2022-03-28
Accepted 2021-05-30
Published 2022-03-28
Abstract
The study allows us to reflect on the leading (internal and external) causes of the crisis for SMEs also considered the corporate age, useful to identify the critical areas that require intervention to prevent or mitigate the crisis. A questionnaire was administered to the bankruptcy trustees appointed by juridical authority to manage 228 bankruptcy procedures. Descriptive statistical analysis and principal component analysis had been employed. Data shows that economic and industrial crisis, market factors and credits management (as external determinants) and planning activities, corporate financial policies, governance, and ownership issues (as internal factors) are recognized as critical of a firm bankruptcy procedure activation. The main limit concerns the restricted sample size due to challenges in the data gathering process considering the “bankruptcy status” and the reference context, characterized by small-sized enterprises, by hilly and mountain landscape, not easy to reach, with infrastructures not so much developed.
References
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Pierri, F., Burchi, A., & Stanghellini, E. (2013). La capacità predittiva degli indicatori di bilancio: un metodo per le PMI. Piccola Impresa/Small Business, (1).
Riva, P., & Comoli, M. (2019). The impact of the new Italian Early Warning System provided by the IC-Code on SMEs governance. Corporate Governance: Search for the Advanced Practices, 65-67.
Sgrò F., Palazzi F., Ciambotti M., Gelsomini L. (2020). Factors promoting and hindering the adoption of management accounting tools: empirical evidence from Italian manufacturing SMEs. Management Control. Vol. 1. DOI: 10.3280/MACO2020-SU1002.
Szychta, A. (2002). The scope of application of management accounting methods in Polish enterprises. Management Accounting Research, 13(4), 401-418.
Thornhill, S., & Amit, R. (2003). Learning about failure: Bankruptcy, firm age, and the resource-based view. Organization science, 14(5), 497-509.
Altman, E. I. (1984), “The success of business failure prediction models: An international survey”, Journal of Banking & Finance, 8(2), 171-198.
Baldissera, A. (2019). Italian small-sized enterprise and procedures of warning crisis. Piccola Impresa/Small Business, (2).
Bhattacharjee, A., Higson, C., Holly, S., & Kattuman, P. (2009). Macroeconomic instability and business exit: Determinants of failures and acquisitions of UK firms. Economica, 76, 108–131.
Bogarelli, P. (2020). Punctual crisis assessment in SMEs: an applicative model. Piccola impresa:= Small Business, (2), 6.
Camacho‐Miñano, M. D. M., Segovia‐Vargas, M. J., & Pascual‐Ezama, D. (2015). Which characteristics predict the survival of insolvent firms? An SME reorganization prediction model. Journal of Small Business Management, 53(2), 340-354.
Carter R., Van Auken H. (2006). Small Firm Bankruptcy. Journal of Small Business Management, Vol. 44(4), 493-512.
Ceccacci, F., & Devetag, G. (2014). Le medie imprese di fronte alla crisi: il caso Meccanotecnica Umbra SpA. Piccola Impresa/Small Business, (1).
Cerrato, D., Alessandri, T., & Depperu, D. (2016). Economic crisis, acquisitions and firm performance. Long Range Planning, 49, 171–185.
Cesaroni, F. M., & Sentuti, A. (2016). Strategie ambidestre e crisi economica: le peculiarità della piccola impresa. Piccola Impresa/Small Business, (1).
Ciambotti M. (2005). Governo strategico d'impresa. Teoria, modelli e sistemi di pianificazione. Torino, Giappichelli.
Ciampi F., Gordini N. (2013). Small enterprise default prediction modeling through artificial neural networks: An empirical analysis of Italian small enterprises. Journal of Small Business Management, 51(1), 23-45.
Ciampi, F. (2015), “Corporate governance characteristics and default prediction modeling for small enterprises. An empirical analysis of Italian firms”, Journal of Business Research, Vol. 68 No. 5, pp. 1012-1025.
Ciampi, F. (2017), “The potential of top management characteristics for small enterprise default prediction modelling”, WSEAS Transactions on Business and Economics, 14, 397–408.
Ciampi, F. (2018). Using corporate social responsibility orientation characteristics for small enterprise default prediction, WSEAS Transactions on Business and Economics, 15, 113–127.
Colombelli, A., Krafft, J., & Quatraro, F. (2013). Properties of knowledge base and firm survival: Evidence from a sample of French manufacturing firms. Technological. Forecasting and Social Change, 80, 1469–1483.
Cucculelli, M. (2017). Crisi, apprendimento e governo dell’impresa. Rivista Piccola Impresa/Small Business, 1, 9-31.
D'Aveni, R. A., & MacMillan, I. C. (1990). Crisis and the content of managerial communications: A study of the focus of attention of top managers in surviving and failing firms. Administrative science quarterly, 634-657.
de Araújo Lima, P. F., Crema, M., & Verbano, C. (2020). Risk Management in SMEs: a systematic literature review and future directions. European Management Journal, 38(1), 78-94.
Gabbianelli, L. (2018). A territorial perspective of SME’s default prediction models. Studies in Economics and Finance, 35(4), 542–563.
Gilbert, C. G. (2005). Unbundling the structure of inertia: Resource versus routine rigidity. Academy of management journal, 48(5), 741-763.
Guatri L., (1995). Turnaround. Declino, crisi e ritorno al valore, Egea, Milano.
Haldma, T., & Laats, K. (2002), “Contingencies influencing the management accounting practices of Estonian manufacturing companies”, Management Accounting Research, 13(4), 379–400.
Lugovskaya, L. (2010). Predicting default of Russian SMEs on the basis of financial and non-financial variables. Journal of Financial Services Marketing, 14(4), 301–313.
Martinez, M. G., Zouaghi, F., Marco, T. G., & Robinson, C. (2019). What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis. Journal of Business Research, 98, 441-449.
Quintiliani, A. (2017). The costs of SME’s financial distress: a cross-country analysis. Piccola Impresa/Small Business, (3).
Ooghe, H., & De Prijcker, S. (2008). Failure processes and causes of company bankruptcy: a typology. Management decision, Vol. 46, No. 2, 223-242.
Pace, R. (2013). Piccole e micro imprese italiane tra crisi e vincoli finanziari: un’indagine empirica. Piccola Impresa/Small Business, (1).
Palazzi F., Ciambotti M., Gelsomini L. (2019). L’adozione dell’Activity-Based Costing nelle PMI: analisi di un caso. Management Control, n. 1 (ISSN 2239-0391, ISSNe 2239-4397) DOI: 10.3280/MACO2019-001005.
Palazzi F., Sgrò F., Ciambotti M. (2018). Alle radici della crisi d’impresa durante la recessione economica globale: Focus sulle PMI italiane. Rivista Piccola Impresa/Small Business, n. 3, ISSN 0394-7947, doi 10.14596/pisb.294.
Pierri, F., Burchi, A., & Stanghellini, E. (2013). La capacità predittiva degli indicatori di bilancio: un metodo per le PMI. Piccola Impresa/Small Business, (1).
Riva, P., & Comoli, M. (2019). The impact of the new Italian Early Warning System provided by the IC-Code on SMEs governance. Corporate Governance: Search for the Advanced Practices, 65-67.
Sgrò F., Palazzi F., Ciambotti M., Gelsomini L. (2020). Factors promoting and hindering the adoption of management accounting tools: empirical evidence from Italian manufacturing SMEs. Management Control. Vol. 1. DOI: 10.3280/MACO2020-SU1002.
Szychta, A. (2002). The scope of application of management accounting methods in Polish enterprises. Management Accounting Research, 13(4), 401-418.
Thornhill, S., & Amit, R. (2003). Learning about failure: Bankruptcy, firm age, and the resource-based view. Organization science, 14(5), 497-509.
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