Knowledge sharing and exchange of information within bank and firm networks: the role of the intangibles on the access to credit

Abstract

Purpose – The purpose of this paper is to theoretically develop the idea that the intangible value of the collaboration between firms and the banking system can influence the probability of default (PD) on the part of firms and, therefore, their rating. The authors also propose that collaboration between banks and firms has a positive effect not only on the access to credit but also on the innovation activities and on the intervention of foreign capital in the ownership of Italian businesses. Design/methodology/approach – As pointed out by the literature on smaller businesses finance, investments widely rely on credit availability. Tests using data on a sample investigation involving 5,587 firms, operating in 17 manufacturing sectors in Italy, support the majority of the proposed ideas. Findings – The empirical investigation shows that only some aspects of the collaboration between enterprises and banks influence the PD, the investments in R&D and the internationalisation of ownership of the enterprises. In particular, the three stated variables are positively influenced both by the intensity of the credit relationship and by the level of information exchange with the credit system. Research limitations/implications – Further development of this research, as more empirical data become available, should allow explaining why the level of information exchange with the credit system has the greatest influence on the dependent variables analyzed. Originality/value – This paper aims to extend the current understanding on how the local banking system is developed and is able to increase access to credit after gathering all the information about firms asking for funds.

The microlevel actions undertaken by owner‐managers in improving the sustainability practices of cultural and creative small and medium enterprises: A United Kingdom–Italy comparison

“…Studies on sustainability have underlined that a sustainable approach is possible only by combining local and global culture and knowledge with the aim of providing solutions to several issues through collaborative and innovative services (Delmas & Pekovic, ; Elkington, ; Ferraris, Santoro, Santoro, & Dezi, ). As stated above, the CCI combines culture, services, and knowledge in local and global dynamics defining sustainable strategies and pathways to be more flexible and innovative (Cunningham, ; Del Giudice, Della Peruta, & Maggioni, ; Della Peruta, Campanella, & Del Giudice, ; Protogerou, Kontolaimou, & Caloghirou, ; Scuotto, Del Giudice, Bresciani, et al, ). Yet the microlevel factors and how these impact the sustainability of CCI SMEs are little studied.…”

Rethinking SME default prediction: a systematic literature review and future perspectives

“…3 Distribution of papers in the clusters for each year (DeYoung et al 2008), greater loan maturity (Berger et al 2005) and a significant reduction of collaterals and in the probability that collateral is pledged (Berger et al 2011b). Apart from the case of borrower-lender long-distance situations (DeYoung et al 2008), many studies in this cluster (Behr and Güttler 2007;Berger et al 2005Berger et al , 2011bPeruta et al 2014) reveal that SEs are more effectively evaluated when banks adopt a relationship lending approach and are consequently better able to acquire the qualitative information which is strategic to assess a SE creditworthiness accurately (Berger 2006). Berger et al (2005) highlight that when the credit-scoring lending technology is used to accept or reject credit applications automatically, informational opacity problems are exacerbated, credit terms become less accurate, and lenders face more significant future credit losses.…”

Editorial: Building Entrepreneurial Ecosystems: Exploring Ambidexterity in Technology and Engineering Management

“…An intense competition and a dynamic environment are posing new opportunities and challenges for technology and engineering management within organizations striving to be innovative. In this respect, organizations that aim to apply technological competencies to business management processes to reach the strategic objectives of the enterprises, cannot rely only on internal resources [1], [3].…”