Exploring features and opportunities of rapid-growth wine firms in Chile

Jorge J Román,Christian A Cancino,José L Gallizo

doi:10.1016/j.estger.2017.02.004

Jorge J Román, Christian A Cancino + Show 1 more

Open Access

https://doi.org/10.1016/j.estger.2017.02.004

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Abstract

While much has been studied regarding the wine industry in Spain and France, little has been studied in developing countries. The aim of this work is to study the characteristics of dynamic wine firms in Chile. This paper presents qualitative research and reports six cases of wine companies, where several variables are analyzed according to Barringer, Jones and Neubaum framework. These variables include prior experience, founders’ knowledge regarding large company management, the use of strategic-planning systems and the use of new technology in the majority of its production. The results of this research could prove insightful for wine entrepreneurs looking to enhance their growth, based on greater differentiation and innovation, and not only on being competitive in pricing.

Highlights

The behavior of the international wine industry has been widely studied in countries such as Spain, Italy and France (Bardají, 2004; Deconinck & Swinnen, 2015; Flint, Golicic, & Signori, 2011; Loubère, 2014)
The aim of this study is to provide information and knowledge regarding the features and explanatory factors that allow enhanced development of rapid-growth wine firms in Chile, which create a greater impact on the economy, by generating a large sales volume, and by creating more jobs and adding more dynamism to the industry
It is apparent that export performance which represents an equal or higher percentage than 75% of total sales for all studied companies, acts as an indicator for the growth rate of companies in the Chilean wine industry, where domestic demand is very low compared to production (Castaldi, Cholette, & Hussain, 2006)

Summary

Introduction

The behavior of the international wine industry has been widely studied in countries such as Spain, Italy and France (Bardají, 2004; Deconinck & Swinnen, 2015; Flint, Golicic, & Signori, 2011; Loubère, 2014). After the entrance of the “new world” in the wine market, i.e., namely the wines from Chile, Australia, New Zealand, South Africa, Argentina and the United States, California in particular, little has been investigated and characterized regarding this industry in the Chilean context. The latter certainly is a disadvantage for Chilean wine firms, which may not necessarily be aware of the determinant factors that explain their increased competitiveness, in the current market scenario, and in the future of a market that is growing tremendously, even presenting the fastest growth (Berrios & Saens, 2012). The selection criteria for this sample corresponds to companies whose efforts to achieve growth mainly focus on the international market, with 75% of total sales in exports and family-owned administration

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