Challenges and opportunities for non-fungible tokens in (international) business: Estonian agricultural firms

Objective: The objective of the article is to identify how agricultural firms have used non-fungible tokens (NFTs) in international business, the challenges they have faced in implementing this technology, and the ways in which they can improve their results. As non-fungible tokens (NFTs) remain almost unstudied in the international (agricultural) management literature, this article helps fill this gap by addressing the following research question: how have agricultural firms used NFTs in (international) business, which challenges have they faced, and how can they improve their results? Research Design & Methods: The qualitative study drew on semi-structured in-depth interviews. It focused on two Estonian SMEs that, in addition to their traditional products (eggs and apple juice), also issued NFTs: digital chickens and digital apple trees. Findings: The results show that the studied firms had contrasting experiences from issuing NFTs. Both have remained mostly focused on their main products and have not yet achieved significant international success. Implications & Recommendations: Issuing NFTs can help firms advertise themselves, increase sales, and raise capital. However, it requires clear use cases and a well-defined purpose. Firms must understand clearly why they need NFTs and how to achieve their goals. It often requires a compelling story, active (social) media engagement, appropriate pricing, a well-functioning, reliable platform (also for an easier purchasing process), and a clear plan for what benefits the NFT holders will receive. Contribution & Value Added: This study contributes to the international (agricultural) management literature by mapping the advantages and disadvantages of issuing NFTs for doing (international) business. The firms’ experiences and satisfaction with NFTs varied. One firm increased visibility, found additional customers, and raised additional capital to develop new products and invest in production facilities and marketing activities. Notably, it avoided bankruptcy. The second firm did not meet its goals, and the project ended in a financial loss. Optimism towards NFTs remains, but the firms need a reliable, well-performing platform. Moreover, the firms must do more to achieve significant international success.