Mauro Paoloni, Marco Tutino, Niccolò Paoloni and Valentina Santolamazza
This work aims to investigate the current financial structure of Italian agri-food micro, small and medium enterprises (MSMEs) to understand how MSMEs face innovation challenges…
Abstract
Purpose
This work aims to investigate the current financial structure of Italian agri-food micro, small and medium enterprises (MSMEs) to understand how MSMEs face innovation challenges, which are also required to support sustainable development.
Design/methodology/approach
To reach the goal, an empirical longitudinal analysis is performed on a sample of Italian agri-food firms. In detail, to highlight the changes in the use of financial sources between 2013 and 2019, a descriptive ratio analysis is carried out on the data extracted by the AIDA database. In addition, statistical analyses were performed, including t-tests and U Mann–Whitney. Finally, a fixed-effects model is created to analyse the panel data. To ensure homogeneity, the sub-sectors of production and transformation are separately considered.
Findings
The financial structure analysis shows an increase in the equity percentage in the funding sources, attributable to an attempt to compensate for the reduction of banks' funding. However, even though this change has not compromised firms' profitability, the undercapitalisation of companies is still present. Therefore, more equity investments are required to support the innovation process.
Originality/value
The value of the present research is to highlight the choice of using new alternative financing sources instead of traditional banks' credit to implement sustainable and innovative development Italian agri-food sector (AFS). This choice is forced by reducing finance from banks and other financial institutions because of the credit crunch. This issue is even more relevant, considering that MSMEs have structural financial problems but have to fulfil the mission of pursuing innovation in the same way as large companies. Therefore, this paper expands the literature on agri-food, delving into an issue typical of MSMEs and combining agri-food with the need for innovation.
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Keywords
Patrick Lo, Robert Sutherland, Wei-En Hsu and Russ Girsberger
The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the…
Abstract
Purpose
The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the perspective of the bank’s decision to vertically disintegrate the loan origination value chain. The main aim is to identify the relevant drivers of the decision to vertically disintegrate the credit assessment phase in the lending business.
Design/methodology/approach
Transaction cost economics and information asymmetry are the typical perspectives of analysis of the vertical scope of business value chains.
Findings
This paper argues that in order to capture the drivers underlying the dynamic evolution of the vertical scope of bank loan origination business models, the above perspectives must be combined and integrated further with a resource-based view and the modularity perspective. Combining managerial and financial perspectives, this paper offers an examination of the drivers of vertical disintegration in the lending value chain and, specifically, in the credit assessment phase.
Originality/value
Although the existence of substantial research on value chain vertical integration/disintegration in the literature, none has directly focussed on the credit assessment value chain. It leaves a gap that the paper aims to overcome. The value chain disintegration has deep managerial and financial implications at firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive business model configurations in the bank lending industry.