Title: Dynamics of failure of a company group: a case study from the recent Italian experience

Authors: Pietro Pavone

Addresses: Department of Law, Economics, Management and Quantitative Methods, University of Sannio, Via delle Puglie, 82, 82100 Benevento, Italy

Abstract: Given the frequent organisational form of Italian entrepreneurship in groups of multinational companies, this paper aims to contribute to the debate on the business crisis by declining the theme of bankruptcy in the context of groups. A qualitative methodological approach has been used to explore the research questions. The case-study of the decline of an important Italian business group (Sopaf Spa) has been presented. This group, after experiencing a phase of great international development, collapsed in a profound crisis before the definitive bankruptcy, inappropriately managing financial resources and investment strategies. The case is particularly relevant for the profiles of serious social irresponsibility demonstrated by the parent holding company which not only triggered the crisis but also propagated its effects within the group, in order to compromise the performance of the other subsidiaries. This study could offer useful reflections to prevent new corporate crises.

Keywords: crisis; mismanagement; corporate groups; bankruptcy; international entrepreneurship.

DOI: 10.1504/IJBG.2024.136000

International Journal of Business and Globalisation, 2024 Vol.36 No.1, pp.113 - 135

Received: 04 May 2019
Accepted: 12 May 2020
Published online: 12 Jan 2024 *

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