Wine Firms Research Articles

Working capital management and profitability of wine firms in France: an empirical analysis

Working capital management and profitability of wine firms in France: an empirical analysis

Competition in the sparkling wine market in the Czech Republic

PurposeVine growing for the production of wine constitutes one of the major areas of agriculture of the Czech Republic, and in recent years, it has been qualitatively improved. The purpose of this paper is to find out whether oligopolistic market structures have come into being on the sparkling wine market in the Czech Republic, and whether some wine firms have a dominant position on the sparkling wine market.Design/methodology/approachThe purpose of this study is to find, compare and carry out a statistical analysis of data on the production and sale of sparkling wines in the Czech Republic, in particular the indicators of the sales and profits of the dominant producer, Bohemia Sekt. In retail chains in the Czech Republic, the price of domestic and foreign sparkling wines was then compared with a comparative analysis.FindingsThe dominant seller of sparkling wine on the Czech market is Bohemia Sekt, which is also the largest domestic non-sparkling and sparkling wine producer. Bohemia Sekt sold 11 m bottles of sparkling wine on the Czech market in 2015 and maintained a 67 per cent share of the domestic market. Traditionally, Christmas time and the end of the year is the main season for selling sparkling wines in the Czech Republic, as more than one-third of the annual production of all wineries is sold at this time.Originality/valueThe paper presents a finding about the consistency of the prices of sparkling wines offered in retail chains in the Czech Republic. This confirms the validity of using the model of oligopolistic competition with a dominant company on the sparkling wine market in the Czech Republic. The dominance of Bohemia Sekt in the given market is mainly due to the loyalty of Czech consumers to this brand.

A Taxonomy of Eco-Innovation Types in SMEs: Exploring Different Firm Profiles in the Canadian Wine Industry

The paper examines eco-innovation strategies in the Canadian wine industry. It uses firm-level data of 151 wine firms that developed eco-innovations between 2015 and 2017 to build a taxonomy of four eco-innovation strategies: (i) eco-innovation laggers, (ii) product-oriented eco-innovators, (iii) process-oriented eco-innovators, and (iv) fully integrated eco-innovators. We then characterize these eco-innovation strategies with respect to firm-level innovation capabilities, firms’ knowledge openness, and firms’ specific characteristics. The results reveal heterogeneity in eco-innovation strategies and show that these strategies exhibit different configurations of innovation-related conditions and firm characteristics.

Firm characteristics and export performance in Portuguese wine firms

PurposeThe purpose of this paper is to contribute to the determinants of export performance literature. The authors investigate the effect of firm characteristics on the Douro region wine firms export performance. The authors consider the Douro region, as it has the Portugal highest wine classification, the appellation d’origine contrôlée and undertakes the first position in the Portuguese wine production and export.Design/methodology/approachThe authors apply a pooling cross-sectional data set that includes 427 observations. The authors pooled two cross sections consisting of 214 and 213 firms for the years 2014 and 215, respectively. The firm export intensity and propensity are the dependent variables. Moreover, the firm size, age and productive efficiency are accounted as the firm characteristics. The authors use the ordinary least squares regression and the tobit and probit models for estimations.FindingsFirst, size is an influential factor to improve the export performance, and the importance of size is higher for younger firms. Second, there is a positive response from export intensity to age and this response is higher for smaller firms. However, there is a negative response from the export propensity to age and this negative response is higher for bigger firms. Third, there is weak evidence to support a relationship between efficiency and export performance.Research limitations/implicationsThis research and the presented results are undoubtedly under some limitations. The main limitation is about the data availability for all characteristics of a firm. For example, it will enrich the result if the authors add some other important variables such as production cost, research and development expenditure and the quality of produced wine by each firm to our analysis.Originality/valueThis research reveals that the influence of firm characteristics on the export performance of Portuguese wine firms is missing in the literature. The results provide a basis to Portuguese wineries to improve their export performance by applying the relevant strategies.

Understanding innovation in Canadian wine regions: an exploratory study

PurposeDespite the importance of innovation in and the growth of the wine industry in recent years, empirical research devoted to innovation in this industry remains scarce. The purpose of this paper is to contribute to filling this gap by exploring innovation among Canadian wine firms.Design/methodology/approachThe data used in this paper are drawn from an original firm-level survey conducted between April and July 2018 to study the business and innovation strategies of Canadian winery firms over the 2015–2017 period.FindingsFirst, the study has identified four innovation modes which are distinct in terms of firms’ strategy, innovation activities, and knowledge sourcing and openness. The second finding is that these different innovation modes are associated with different innovation outputs. The third finding is that there here is a tendency for certain innovation modes to better reflect firms in some regions, although all innovation modes are represented to different degrees in each of the three wine regions.Originality/valueEmpirical research devoted to innovation in this industry remains scarce. This paper contributes to filling this gap by exploring innovation among Canadian wine firms. These firms deal with several challenges and opportunities arising from the production and transformation of cool-climate grapes that impact on business innovation approaches.

How Does Carbon Footprint Create Shared Values in the Wine Industry? Empirical Evidence from Prosecco Superiore PDO’s Wine District

Nowadays, the wine sector’s entrepreneurs are increasingly aware of the relevance of sustainability representing a crucial point for society, economy and the environment. This paper aims to describe Conegliano Valdobbiadene Prosecco DOCG (Controlled and Guaranteed Denomination of Origin) firms’ behaviour focusing on how strategic incorporation of environmentally sustainable practices and social actions contribute to strengthen their competitiveness and deliver shared value for the community. Using partial least squares structural equation modelling (PLS-SEM), survey data from 128 sparkling wine firms are analysed. The results highlight the roles of carbon footprint and employment as drivers in the creation of shared values (SVs), considering the major export markets of Prosecco Superiore DOCG. This empirical evidence may be of interest to firms in the wine sector when considering, in their business decisions, the added commercial value that is derived for the adoption of environmental practices and sustainable social actions. Hence, following this logic, they can manage more inclusive and virtuous paths towards positive social entrepreneurship and an environmental externality to the community.

Port wine, an established product a new market: A comparative analysis of perceptions of firms and consumers

Port wine industry can be considered as a case study of the effects of globalization, expressed at diverse levels, such as changes in habits of consumption and lifestyles, that lead to a decrease of consumption rates in the last years. The aim of this paper is to understand how to reverse the downward trend, proposing guidelines to increase Port wine competitiveness in the market. Therefore, the core of this research is to compare perception of wine firms and consumers, regarding the actual image and consumption of Port wine. A qualitative approach was applied including In-depth interviews with the directors of companies (n=20) and two focus groups with young consumers (n=15). Data were transcribed verbatim and content analysed. Results showed convergence between perception of wine firms and consumers regarding Port wine needs to increase its competitiveness in the market. Three main dimensions emerged, as the most important areas to develop: 1) promotion; 2) product adaptation to the market and 3) focus on innovation, mostly regarding the sensory characteristics of beverage, the packaging and the communication to consumers. This study aims to contribute to the growing field of wine marketing, which in special Port wine lacks research.

A hedonic price analysis for the Portuguese wine market: Does the distribution channel matter?

ABSTRACTPrice is a core component of both wine firms’ and consumers’ decision-making and so there has been a lot of analysis of the determinants of wine price. Most of the research has used the hedonic price function and assumed that the wine market is homogeneous with respect to both distribution channel and price segments. In this paper, a hedonic price function is estimated using data from a specialist retailer and a large supermarket, i.e., retailers in two different consumer market segments, niche and mass market, respectively. We conclude that the wine market is heterogeneous, and the importance of the various price determinants differs between distribution channels and, in the case of the specialist retailer, throughout the conditional statistical distribution of the price. This result may help the wine companies to place themselves in the market value chain.

Performance vs. Family Ownership and Management: The Case of Portuguese Wine Firms

Performance vs. Family Ownership and Management: The Case of Portuguese Wine Firms

Eco-innovation and competitiveness in the Barossa Valley wine region

PurposeThis paper aims to explore the role of eco-innovation in the competitiveness of the Barossa Valley wine region, which is one of the premier wine areas in Australia.Design/methodology/approachA case study approach using qualitative in-depth semi-structured interviews was utilised to gather data from respondents in the wine regional cluster.FindingsThe findings suggest that eco-innovation and regional wine clusters contribute to better international performance of wine firms. In addition, environmental issues are important for the wine industry because of the role they play in the global economy.Research limitations/implicationsThis study highlights the growing importance of climate change and sustainability on the willingness of wine firms to be involved in eco-innovation. This is crucial for wine firms in the Barossa Valley being globally competitive leaders based on environmental innovations.Practical implicationsDue to the large amount of natural resources that wine firms use, clusters can be used to encourage eco-innovation, which can facilitate further expansion into new international markets. This is important because of consumers increasing emphasis on environmentally friendly food products and the government priority given to eco-innovations.Originality/valueThis paper provides insights into the eco-innovation process that can help wine firms, industry practitioners and regional planners develop better environmental strategies that lead to increased global competitiveness.

Export performance in Spanish wineries: the role of human capital and quality management system

The aim of this paper is to research the effect of human capital and Quality Management System (QMS) on the export performance of wine firms. The empirical analysis is carried out using data from a sample of Spanish wineries and performing Tobit regression models. In relation to human capital, the results show that only the specific human capital is associated with superior export performance of wineries whereas the general human capital, although it has a positive coefficient, is not statistically significant on the export performance of wine firms. The results related to QMS show that those wine firms certified with the ISO 9000 standard of QMS have better export performance.

Family relationships and its influence on family wine firms in the Czech Republic

Purpose of the article: There are many a studies by universities and various companies regarding the phenomenon of family business. However, a clear interpretation of the family business does not exist. Thus, the purpose of this paper is clarify the question of family relationships existing within the family business in the Czech Republic. Methodology/methods: As the wine family business is a bright representative of the oldest and traditional economic activities, it was decided to analyze the family relationships of 108 representatives of the wine family firms in the Czech Republic within the secondary research. For primary research the case study method was used. Representatives of wine family firms were interviewed to confirm the obtained results and add the details. Scientific aim: The aim of scientific research is to improve the understanding of family firm’s base from the perspective of family relationships. Findings: Coming out of the definition by Arquer (1979) and taking the applicable Civil Code of the Czech Republic into account, the author has created a definition regarding the family business to be transferred to the next generation. Accordingly, there were identified four dominant groups of family relationships within the wine trading family business. A representative interviewed among others has confirmed the existence of traditional wine trading family business saying that it is not only a mere marketing tool for the customer acquisition. Besides that, case studies make clear beyond the veil the influence of family relationships on the firm’s performance. Conclusions: This study has contributed to the theoretical body of family business research providing an important first step to gaining insights into the understanding of family relationships of the family business influencing its effective functioning.

Are winemaker consultants just another source of knowledge for innovation?

PurposeThis paper aims to explore the effects of multiple external sources of knowledge and of the use of winemaker consultants on innovation in the Canadian wine industry.Design/methodology/approachThe data for the study are taken from an original survey of wine firms in Canada covering the 2007-2009 period. The survey was carried out by computer-assisted telephone interviews, and it was addressed to winery firms that are engaged in growing grapes and producing wine.FindingsThe results show that the use of winemaker consultants positively affects all forms of innovation. At the same, as far as external knowledge sources are concerned, marketing sources positively affect all types of innovation, while research sources and general sources have a positive influence on particular forms of innovation. The results also show that winemaker consultants interact with other knowledge sources. Nevertheless, there are important nuances with regard to which type of knowledge sources is more compatible with the use of winemaker consultants for which type of innovation.Originality/valueTo date, there is no empirical evidence of the extent to which the use of external winemaker consultants and external knowledge sources interact together and what are their impacts on the introduction of different forms of innovation.

Do women perform better in family firms?

PurposeEmpirical evidence on the relation between female involvement at the head of a company and firm performance remains inconclusive. This study aims to disentangle the existing evidence by exploring the moderating role of family firm status.Design/methodology/approachThe study analyzes the moderating role of family firm status on the relation between gender diversity and firm performance among a sample of 88 Italian wine firms from Campania region during the 2007-2014 period. This work uses random effects panel data regression and tests the robustness of the results using alternative econometric techniques. Performance is measured in terms of profitability.FindingsThe findings reveal that women in top positions do not affect firm performance. However, it is found that this relation is significantly moderated by family firm status. Specifically, compared to high family-controlled firms, female involvement negatively impacts firm performance in low family-controlled firms.Research limitations/implicationsFrom a theoretical standpoint, the results enable a more nuanced interpretation of the relationship between female involvement and firm performance. From a managerial perspective, the results highlight conditions that may promote the role of women in business.Originality/valueThis paper provides insights into the relation between gender diversity and firm performance by exploring the moderating role of family firm status – a novel approach in the management and wine business literature.

Internationalization vs family ownership and management: the case of Portuguese wine firms

PurposeThe purpose of this paper is to empirically examine the relationship between the firms’ ownership and control structure and their export performance. The literature is traditionally focused on the relationship between firms’ performance and internationalization, with the relationship between ownership and control structure with internationalization being much less studied, particularly in the context of family firms.Design/methodology/approachThe authors focus their study on the Portuguese wine firms due to their increasing importance in the Portuguese economy and in the promotion of the country’s exports and image abroad. They used a balanced panel data sample of 82 firms for the period from 2011 to 2015 and applied a random effects model and a Tobit specification.FindingsThe degree of family involvement shows a negative and significant relationship with internationalization, meaning that family firms that intend to internationalize should be open to receive external managers with international experience and increase their internal competencies to enhance internationalization.Originality/valueThis paper extends the literature since assesses, at the light of the agency theory, the presence of differences in the internationalization degree and export intensity between family firms that are managed and controlled by the owners and family firms that are managed by non-family members, with an application to a less studied sector and country.

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

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.

Evolution of the concept of performance in the wine industry: a literature review

For several years, the wine industry has experienced structural changes, primarily due to the international context. Now, it has to face the challenge of sustainable development. Since the wine industry constitutes a significant asset in many countries, this paper addresses the issue of wine firms' performance by attempting to define how it is analysed in the literature in order to determine whether it succeeds in facing and addressing this current question. In this aim, we propose a systematic literature review on 'performance * wine' in the abundant scientific literature from 1975 to 2012. It demonstrates the substantial interest in this concept but also underlines the various meanings of performance according to the dimensions, indicators and players considered. The central finding of this paper is that both theoretical and empirical works fail to cover the sustainable issues faced by this industry, especially concerning the social and territorial dimension. Consequently, the paper identifies research gaps that must be filled to better understand and improve wine firms' global performance.

Evolution of the concept of performance in the wine industry: a literature review

For several years, the wine industry has experienced structural changes, primarily due to the international context. Now, it has to face the challenge of sustainable development. Since the wine industry constitutes a significant asset in many countries, this paper addresses the issue of wine firms' performance by attempting to define how it is analysed in the literature in order to determine whether it succeeds in facing and addressing this current question. In this aim, we propose a systematic literature review on 'performance * wine' in the abundant scientific literature from 1975 to 2012. It demonstrates the substantial interest in this concept but also underlines the various meanings of performance according to the dimensions, indicators and players considered. The central finding of this paper is that both theoretical and empirical works fail to cover the sustainable issues faced by this industry, especially concerning the social and territorial dimension. Consequently, the paper identifies research gaps that must be filled to better understand and improve wine firms' global performance.

Quality differentiation in the Italian wine industry: terroir-based vs. brand-based strategies

This study assesses the reasons that induce wine firms to choose their differentiation strategy, namely a terroir-based or a brand-based approach, considering both endogenous factors (e.g., firm size, nature of upstream-downstream relations) and exogenous conditions (market size/opportunities, collective brand reputation). First, we provide an empirical characterisation of the Italian denomination of origin wine processing and bottling industry as well as of firms' quality differentiation strategies, by means of a cluster analysis (CLA). Based on these results, we developed an industrial organisation model explaining the incentives for firms to adopt each strategy in a competitive context, focusing on the trade-off between terroir-based strategies and brand-based strategies. We conclude that brand-based strategies are motivated mostly by scale economies, short-run market opportunities and synergies between brand and designations of origin, while the main reasons prompting firms to choose terroir-based strategies relate to supply chain control, low demand uncertainty and competition intensity.

A resource-based view of the firm and micro and small Italian wine firms

PurposeThe purpose of this paper is twofold. First, the resource-based view (RBV) of the firm is adopted to explore the most important resources among micro and small firms operating in Italy’s wine industry. Second, the study incorporates a SWOT analysis to examine perceived strengths, weaknesses, opportunities and threats based on the perceptions of owners and managers of these firms.Design/methodology/approachAn online questionnaire was designed to gather both quantitative and qualitative data from Italian wineries; a total of 211 firms participated in the study.FindingsProduct quality, managerial/staff capabilities, knowledge, reputation, service quality and the territory/region emerge as most important resources, clearly aligning with the attributes of the RBV, namely, valuable, rare, imperfectly imitable and (non)substitutable resources. However, based on the RBV, the future-sustained competitive advantage is threatened by, among other factors, the firm’s finances, competition, red tape and the complexity of increasing sales.Originality/valueFundamentally, the research contributes to micro and small enterprise literature, and to the limited number of studies that have used the RBV of the firm in the context of micro and small wineries. This theoretical framework is used among wineries of one of the world’s leading wine producing nations. Some dimensions of this country’s wine industry have received limited academic attention. In addition, the study provides practical value in identifying resources, limitations, and threats at a time when micro and small wineries are seeking to develop or increase their international presence.