Determinants of winegrowers’ profitability: evidence from an Eastern Europe wine region

Abstract

Purpose The purpose of this paper is to identify the main determinants of winegrowers’ profitability in Eastern Europe with the ultimate purpose to improve the wine industry competitiveness. Design/methodology/approach The research is focussed on the Moldova region (Romania), a little studied wine-growing area that presents potential for the future development of the wine industry. A hierarchical approach is applied to consider the simultaneous effects of climate aspects, vineyard features, winegrowers’ characteristics and management practices on vineyards’ profitability. The model is based on data from 274 vineyards managed by 64 winegrowers, where 32 different grape varieties are cultivated in different districts. Different scenarios are simulated and alternative policies are analysed. Findings Climate aspects and human factors, particularly the educational level and type of agriculture practiced, emerge as main determinants. Farmers’ climate change perceptions also have a primary role. The grape variety affects profitability differences across vineyards at a lower extent. Research limitations/implications The study suggests an approach easily replicable to other viticultural contexts. Practical implications Results are useful for policymakers in order to forecast the impact of policies devoted to improving the wine industry competitiveness in Eastern Europe. Originality/value The study presents a micro-scale analysis in which the effects of climate aspects, vineyard features, winegrowers’ characteristics and management practices are simultaneously estimated. It also produces new knowledge in a little studied wine region.

The requisite match between internal resources and network ties to cope with knowledge scarcity

“…"Human capital encompasses the training, experience, judgment, intelligence, relationships, and insight of individual managers and workers of a firm" (Barney, 1991, p. 101), affecting both differentiation and cost leadership strategies (Rua et al, 2018). While organizational capital involves the firm's reporting structure, planning processes, control and coordination systems, and information relations among employees within the firm, among firms and within the business environment (Javalgi and Todd, 2011;De Salvo et al, 2017). Above all, in the case of SMEs, as underlined by Hsu et al (2013), the decisions on international strategy are usually under the responsibility of a person or a reduced management team, managers are called to create structures able to manage such processes (Altintas et al, 2017;Lin and Lo, 2015).…”

The amazing bond among wine consumption, health and hedonistic well-being

“…Besides, in the young grapes, there is also a large group of organic acidsapples, wine, lemons, amber, antacids, etc. The grape variety also affects profitability differences across vineyards (De Salvo et al, 2017). Grapes are rich in mineral salts: potassium 235 mg, calcium 45 mg, sodium 26 g, phosphorus 22 mg, as well as marganets, cobalt and iron salts.…”

A sustainable perspective in wine production for common-good management

“…The wine sector is a frequent subject of study (Vrontis et al , 2006; Vrontis, Thrassou and Rossi, 2011) because of its relevance to company revenues and employment (Bresciani, Ferraris, Santoro and Nilsen, 2016; Bresciani, Giacosa, Broccardo and Culasso, 2016; Contò and Lopez, 2008; De Salvo et al , 2017; Rossi et al , 2012; Thrassou and Vrontis, 2006, 2009). Cultural identity and commons development are strictly linked in the wine sector (Bonnekessen, 2010; Bresciani and Oliveira, 2007; Contò et al , 2014, 2015).…”