Does Sustainability Push to Reshape Business Models? Evidence from the European Wine Industry

Stéphane Ouvrard,Sajjad M Jasimuddin,Antonio Spiga

doi:10.3390/su12062561

Stéphane Ouvrard, Sajjad M Jasimuddin + Show 1 more

Open Access

https://doi.org/10.3390/su12062561

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Journal: Sustainability	Publication Date: Mar 24, 2020
Citations: 35	License type: CC BY 4.0

Affiliation: Kedge Business School, University of Bordeaux

Abstract

The wine industry is not free from environmental concerns. The paper intends to explore the owners/managers’ interest in environmental sustainability issues in their business model and to empirically understand a business model in the wine industry. Taking a qualitative approach, this exploratory study allows us to observe the phenomenon in a natural setting. Eleven interviewees were selected from wineries based in France and Italy. The study reveals that sustainability is an important issue in wine businesses that shapes the business model. Highlighting the environmental aspects of wine production, the four components of a business model, i.e., performance, resources, innovation, and value creation (PRIV), have emerged from the interviews. The sustainability and environmental issues are reflected in business models in the wine industry. The paper explains how these components of a business model work together to ensure sustainability practices by wine producers. This study proposes a model for future applications in winery businesses. The paper helps to understand that wine producers are very keen on environmentally friendly wine businesses.

Highlights

The interest in a business model has grown in significance as it is associated with enhancing a firm’s competitive advantage [1,2,3]. a business model describes how a firm operates its business [4,5]. a business model is not, in itself, a strategy [6]
The findings reported in this paper provide insights into the phenomena surrounding the business model of a wine company, showing sustainability and environmental issues to be critical to the business model
This paper offers a business model conceptualization to reflect what takes place in the wine companies under investigation in terms of environmental sustainability issues in the wine industry

Summary

Introduction

The interest in a business model has grown in significance as it is associated with enhancing a firm’s competitive advantage [1,2,3]. a business model describes how a firm operates its business [4,5]. a business model is not, in itself, a strategy [6]. According to Casadesus-Masanell and Ricart [6], a business model refers to the logic of the firm, the way it operates, and how it creates value for its stakeholders. It describes how a given actor “chooses to connect with factor and product markets” [7]. Lopes et al [10] articulate a conceptual review of business models, innovation, and sustainability transition in the context of a health business. This is not an exception for the wine industry. The wine sector has a reputation as being environmentally safe [12]

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