Bridging business model and inter-organizational coordination mechanisms in the Italian wine industry

Abstract

Purpose The aim of this paper is to interpret the concept of a business model from the pattern of coordination mechanisms used by an Italian wine cooperative to manage its inter-organizational relationships. Design/methodology/approach The business model is taken as the structure and governance of the relationships between the focal firm and its exchange partners. The empirical analysis is based on a qualitative investigation, analyzing material collected at the Farming Cooperative Gran Cru. Findings Several different coordination mechanisms were used to rethink the firm customer value proposition, showing a very complex and dynamic inter-organizational system: process control mechanisms, knowledge suppliers and clan control mechanisms. The combination of mechanisms enables the firm to govern the extreme complexity of external complementarities and interdependence among activities and resources. Practical implications The study is particularly helpful to managers because wine entrepreneurs and managers can influence their networks’ features and strategies, as well as the mechanisms for governance of the relationships and extracting customer value. Originality/value The study seeks to enrich the debate on the strategy/structure fit by shifting the focus from the organizational to inter-organizational level of analysis. The analysis centers on boundary-spanning relationships between one wine firm and its partners and knowledge suppliers. This perspective brings business model analysis and inter-organizational design closer because variables of the business model – such as customer value – can be seen as combinations of inter-organizational coordination mechanisms.