Tiia Vissak

Failure processes of exporting firms: evidence from France

Purpose This paper aims to detect failure processes of French exporting firms and study their contingency with export processes. Design/methodology/approach The sample consisted of 131 bankrupted exporting firms from Bureau van Dijk’s Amadeus database. Factor and cluster analyses of six financial variables from Laitinen’s (1991) model were used to detect failure processes. Export processes were detected with cluster analysis of export share in total turnover. Contingency between failure and export processes was studied with a statistical test. Findings Three different failure processes existed for exporting firms. Two of these processes, which accounted for 79 per cent of firms, were classified as gradual failure: a step-by-step worsening of financial performance before the bankruptcy was declared. One was a symbiotic process reflecting varying pre-bankruptcy behaviours of different financial variables. Two different types of exporters existed. Most firms (77 per cent) were occasional exporters, while 23 per cent were constantly and more strongly involved in international markets before their bankruptcy was declared. There was no contingency between failure and export processes. Originality/value This study is the first one to detect failure processes specifically for exporting firms based on financial variables. In line with previous literature about non-exporting firms, gradual failure processes were most characteristic to exporting firms. The study shows that different types of exporters were not characterized by any unique behaviour of financial variables before their bankruptcy was declared.

The role of network relationships in small wineries’ internationalization: A case study from Marche, Italy

Purpose This paper aims to examine the role of tourist-generated and other network relationships in small Italian wineries’ internationalization. Design/methodology/approach It is based on 14 cases of which four are discussed in detail. All 14 cases are summarized in two tables and analyzed in the Discussion section. Findings Most firms did not pre-plan their foreign activities. International wine tourism was a major source for creating the contacts necessary for their internationalization: they created relationships/networks in tourists’ home markets and, as a result, expanded there either through selling directly to tourists or to the importers they recommended. In addition, they relied on contacts created at trade fairs or by friends/relatives. Some internationalization attempts failed, as the firms were passive and lacked long-term strategic plans. Thus, these producers have not fully realized the potential of wine tourists’ contacts and other network relationships in their internationalization. Originality/value It shows how wineries benefited from tourists’ networks and other co-operative relationships and how, as a result, they started exporting, but also which problems they faced. These topics have not received considerable research attention yet.

Which Factors Affect the Internationalization of Chinese Firms

Internationalization processes and the factors impacting them have been studied very actively since the 1970s. International Business (IB) researchers have sought to explain why some firms internationalize slowly (see Bilkey, 1978; Johanson and Vahlne, 1977, 1990; Johanson and Wiedersheim-Paul, 1975; Morgan and Katsikeas, 1997) and why some internationalize much faster (see Bell, 1995; Madsen and Servais, 1997; McDougall, Oviatt, and Shrader, 2003; Oviatt and McDougall, 1994). Although a substantive body of research has emerged, there is still not enough evidence with regard to the internationalization of firms from some emerging countries. For example, Sandberg (2009: 108) states that traditional internationalization theories ‘need to be adjusted and complemented to be suitable (…) for studying firms taking off from a turbulent emerging market as China’.

Introduction to the special issue: Current challenges and future prospects of entrepreneurship in Nordic and Baltic Europe

Purpose – The purpose of this paper is to set the papers included in the special issue into their unique contextual stage of entrepreneurial eco-systems in Nordic and Baltic countries. Design/methodology/approach – The editorial first presents the current status of entrepreneurship in the Nordic and Baltic regions. It then provides an overview of the papers included in this special issue, while highlighting their contributions. Finally, it concludes with suggestions for further research, while pointing out promising areas for future investigations. Findings – The papers included in this special issue help advance the understanding of important aspects of entrepreneurship in general, and within the context of Nordic and Baltic countries in particular. The first two papers focus on antecedents of entrepreneurial behaviour, namely – education and passion, while the last two papers address entrepreneurial behaviour and its outcome in terms of both growth aspiration and actual growth. Finally, the editorial identifies three important themes for future research, namely – the roles of Web 2.0 and online communities, crowdfunding and alternative finance, as well as current immigration trends on entrepreneurship development and dynamics in Nordic and Baltic Europe. Originality/value – This editorial and special issue are in tune with current calls for better understanding of entrepreneurship-related phenomena within their social context, and some of the linkages between social settings and manifestations of entrepreneurship. And while most papers concentrate on themes that may be associated with mainstream entrepreneurship research, each introduces new angles and/or conceptual combinations surrounding such themes and variables, which are unique and inspirational.

Chinese Multinationals’ Entry, Exit and Re-Entry Patterns: Survey Evidence

Hsu, Lien and Chen (2013) have stated that firms from emerging economies are becoming increasingly active in international business. On the other hand, Deng (2012, 2013) and Zhong, Peng and Liu (2013) claim that knowledge on internationalization of emerging economy multinational enterprises (MNEs) is insufficient, and according to Li (2007, 2010), especially smaller multinationals from emerging economies are still under-researched. Moreover, Matthyssens and Pauwels (2000: 700) concluded that “Because of increased competition ... it can be expected that not every foreign entry is successful”. Li (2007) proposed that MNEs experience several boom-and-bust cycles in their existence. According to Vissak (2010), nonlinear internationalizers may be found more frequently than linear internationalizers, that is, firms that never exit or re-enter foreign markets. Thus, Javalgi, Deligonul, Dixit and Cavusgil (2011), Turner (2012), Vissak and Francioni (2013), Welch and Welch (2009), and Zhang and Larimo (2012) stressed the importance of studying exits and re-entries as to date they have not received enough research attention.

The Consequences of Dishonesty in International Partnerships: Three Chinese Cases

Purpose — This chapter aims to argue that in some cases, dishonesty in international partnerships may be beneficial from the dishonest firm’s perspective.Design/methodology/approach — The chapter is based on three cases of dishonest Chinese firms that cheated their American or German partners.Findings — We argue that dishonesty does not always lead to negative consequences for the dishonest/opportunistic firm and if it does, benefits may be larger than costs.Practical implications — It is not always easy to avoid partners’ dishonest behavior especially if they hope to benefit considerably from this and if the probability of getting caught and punished is low.Originality/value — The consequences of dishonesty in international partnerships — especially, relationship dissolution and positive impacts of dishonesty for the dishonest firm — have not received considerable research attention yet. We argue that despite relationship dissolution caused by the Chinese partners’ dishonesty, two of the dishonest firms gained.

Interconnecting exporter types with export growth and decline patterns: Evidence from matched mature Estonian and Spanish firms

Purpose This paper aims to find out if different exporter types dominate among matched mature Spanish and Estonian firms and whether these types are associated with specific export growth/decline patterns. Design/methodology/approach This study is based on firm-level data from the Estonian Business Register’s database of annual financial reports and SEPI Foundation’s survey on Spanish firms’ business strategies. From both countries, 242 firms were included and the period 2009-2013 was chosen. Findings Committed exporters (with 75 per cent or higher export shares) dominated in Estonia and experimental exporters (with export shares mostly below 10 per cent) in Spain. While in Estonia, the most frequent export growth/decline pattern encompassed four consecutive growth years, in Spain, it had two consecutive growth years and then two decline years. Spanish firms’ export growth/decline patterns were more random: 12 patterns of 16 fell within the range of a random walk assumption, while in Estonia, only 5 patterns were within the range. Contingency existed between exporter types and export growth/decline patterns only for the whole sample. Originality/value This paper studies if committed/aggressive/active exporters experience more export fluctuations than passive/experimental exporters, and how random export growth/decline patterns are.

The Value of Knowledge, Network Relationships and Governmental Support for Chinese Firms’ Early Internationalization: Survey Evidence

Firms’ early internationalization has received considerable research attention. According to studies on born globals (Madsen and Servais 1997) and international new ventures (Oviatt and McDougall 1994), firms enter far markets soon after establishment. However, according to studies on slower internationalizers – for instance, in the case of innovation-related internationalization models (Bilkey 1978) and the Uppsala model (Johanson and Vahlne 1977, 1990) – internationalization takes more time and starts from the closest and/or more familiar markets.

Interconnecting financial performance and internationalization: a case of a rare metal producer

The paper aims to outline the causes that affected a rare earth metal producer Molycorp Silmets internationalization based on case study evidence. Moreover, based on statistical analysis, it aims to study how its internationalization and financial performance were interconnected. It concludes that 1) its export fluctuations mostly resulted from external factors and that despite such fluctuations, the firms financial health was mostly good, 2) high concentration on a single target market can lower profitability, 3) fluctuations in target market shares can increase or decrease a firms profitability, but they are not interconnected with its bankruptcy probability.

The Role of Wine Tourism in Italian SMEs’ Internationalization: Eight Cases

Although several scholars have examined a possible relation between international tourism flow and international trade and confirmed that wine tourism creates marketing opportunities to sell products, most have carried out quantitative research. Therefore, there is a lack of exploratory and qualitative research. Moreover, it is also necessary to study why some wine producers internationalize suddenly after being local-market oriented for decades (become born-again globals/-internationals) and why they experience difficulties in internationalization as such firms have received less attention in internationalization literature. This study contributes toward closing these gaps and aims to examine the influence of international tourism on the internationalization process of Italian SMEs producing Bianchello del Metauro wine.