Family business succession: opportunities from the Victorian wine industry

Abstract

PurposeThis paper aims to examine the opportunities of continuous family succession in operating small-to-medium-sized wineries (SMWs) in Victoria, Australia.Design/methodology/approachUsing case studies from Victoria, an exploratory qualitative approach was used to explore the benefits of continuous family succession in this conceptual paper. This included interviewing participants from wineries about their perceptions about family business succession. Themed analysis was applied to highlight the findings and overall conclusions about why the wine industry was affected more than other industries with regard to family business succession issues.FindingsThe three main findings of this study include family succession is extremely important in building a story customers can relate to; family reinvestment opportunities for financial sustainability and innovation of the winery and family succession for future employment and legacy. These three findings highlight the way family business succession is integral to the successfulness of the wine industry.Practical implicationsSmall-to-medium-sized wineries (SMWs) have many challenges including long-term financial sustainability and innovation opportunities. To assist in overcoming these challenges, the findings suggest winery owners need to create lasting legacy through story-telling, competitive advantage and family linkage (succession). This will assist wineries to create marketing campaigns focussing on family succession and brand attachment, seven opportunities for family reinvestment and innovation leading to financial sustainability and competitive advantage.Originality/valueThere is little research investigating family succession in the Victorian wine industry even though it is common practice and essential to marketing and communication campaigns. This paper supports continuous family succession as a legitimate marketing technique and long-term financial sustainability and innovation for small-to-medium-sized wineries (SMWs) through reinvestment opportunities. This is the first time small-to-medium-sized wineries have been defined as SMWs and reinvestment opportunities have been identified by wine stakeholders.

Facilitating corporate sustainability integration: innovation in family firms

“…This inclination is particularly evident in family firms operating in small and rural markets, where the economic resilience of the family business is closely intertwined with the stability and prospects of the market (Niehm et al, 2008). Moreover, family firms are increasingly compelled to pursue innovation as a means to facilitate intra-family succession and secure longterm viability, especially in light of their exposure to profound economic, political, and ecological changes (Baltazar et al, 2023;Strickland and Ratten, 2023). The focus on sustainability-driven innovation reflects the family firms' commitment to enduring success and adaptability, not only for their own prosperity but also for the well-being of the communities they serve.…”

Tourism/Hospitality and family business: a perspective article

“…These often long-grown networks, including sub-industries, such as transportation, recreation facilities and tour operators, and the involvement of family/-ies in business decision-making, organizational culture and succession in these networks generally need to be better understood (Camilleri and Valeri, 2021). For the ever-prominent succession topic (Strickland and Ratten, 2023), it could particularly be interesting to investigate family inter-succession after the founding generation, that is, successions across second and third generations (happening in many established tourism/hospitality settings worldwide), as there are more potential successors and hence various possible conflicts (Kallmuenzer et al ., 2021).…”