Antecedents and Consequences of Green Innovation in the Wine Industry: The Role of Channel Structure

Abstract

In this study, we place green innovation in a broader technology development, commercialization and distribution context to test hypotheses in three areas: (1) the internal versus external drivers of green innovation; (2) the effect of green innovation on business performance; and (3) the role of channel structures (the degree to which producers sell directly to consumers or businesses) in making green innovation more productive in terms of business performance. To test our hypotheses, data from an international survey among 123 wineries is used. Our results suggest that internal drivers, i.e. environmental management and quality management in particular, play a greater role than external drivers (e.g., government and regulatory pressures) on the adoption of green innovation strategies. Producing and using organic products and processes and recycling activities are found to have a significant direct positive impact on business performance. Our results also confirm the moderating effect of channel structures: the benefits of green innovation in terms of business performance are larger when firms use more direct sales channels (selling wine directly from the wine cellar to consumers and businesses).