Insights of the Romanian Business Ecosystem: The Liquidation Strategy

We investigated liquidation strategies within the Romanian business ecosystem, highlighting its role within the defensive managerial approaches. While growth strategies are favoured by Romanian managers, liquidation, either partial or total, appears to be a corrective mechanism when firms face resource constraints, adverse industry conditions, or other crises. Hence, this study underlines the implications of liquidation from the point of view of its use and the causes which determined its implementation. By using semi-structured interviews, we concluded that liquidation, voluntary or forced, is correlated with owners’ decision of continuity, business operational inefficiencies, market pressures, and macroenvironmental disruptions. Under such circumstances, the study highlights the importance of managerial knowledge and vision in avoiding liquidation, framing it as a strategic alternative than as an indicator of failure.