Competitor orientation and value co-creation in sustaining rural New Zealand wine producers

Abstract

This study, underpinned by the Resource-Based View and its association with the Relational View, contributes to the existing cross-disciplinary literature involving economic geography, tourism and marketing by extending the current understanding of the relationship between firms' value co-creation activities and sales performance in the context of rural wine producing firms. Specifically, by investigating how a firm's competitor orientation (possessing and acting upon knowledge of competitors) affects the relationship between firms' capabilities to engage in value co-creation activities and sales performance. This investigation utilises a multi-level qualitative investigation within small-to-medium-sized, New Zealand wine producers engaging in various value co-creation activities (wine hospitality and tourism such as accommodation and restaurants through to wine sales, including at cellar doors). The methods employed involved 40 interviews across 20 businesses; observations of cellar door employees in all 20 firms; and collection of archival data. The findings reveal that by having a high degree of a competitor orientation, the enhanced value co-creation activities can help individual companies improve sales performance and support cluster sustainability, including via repeat tourism. However, results vary among competing businesses based on the product-markets served, where illustrations of potential tensions highlight the need for the management of complementary relationships, within and across clusters (the latter typically being to serve overseas markets). This study consequently offers new unique insights that explain strategies affecting not just an individual firm's performance, but also, the sustainability of other businesses.