Intangible effort and performance: the case of the French wine industry

Abstract

This study investigates to what extent intangible investments have a positive impact on French wine companies' financial performance. French wine companies are small- and medium-sized enterprises (SMEs), so the task is (a) to measure their intangible expenses and capital, and (b) to estimate their impact on companies' performances. The authors then analyze the effect of property structures (cooperatives and corporations) and business activities on the intensity of the relationship between intangibility and performance. Relationships between intangibles and performance were tested empirically by means of a questionnaire carried out in 2005-2006. Questionnaire data were completed using financial statements for 207 companies whose activity included one or more stages in the production and marketing of wine. Using MANOVA and the production function approach, the authors found evidence that intangible proxies had a negative impact on the firms' economic performance measurements and a positive impact on commercial performance for intermediate values of intangible ratios. They also found that production functions were very different with regard to legal status and business activity, but that the negative impact of intangible proxies remained. © 2010 Wiley Periodicals, Inc.

Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review

“…The authors combine the resource‐based view approach with the market orientation theory to empirically examine the relationship between intangible investments and financial performance. Amadieu and Viviani () deliver evidence that intangibles have a negative impact on the firms' financial performance but a positive influence on commercial results.…”

“…Others(Halme & Korpela, 2014) analyze the role of innovation and entrepreneurship on sustainability to convey that SMEs can create responsible innovations with vastly different resource combinations: the most common comprises equity, research and development cooperation, networks, industry knowledge, and reputation. Continuing on these fields,Amadieu and Viviani (2010) focus on the role of innovation and entrepreneurship in sustainability by also analyzing the effect of the intangible resources used. The authors combine the resource-based view approach with the market orientation theory to empirically examine the relationship between intangible investments and financial performance Amadieu and Viviani (2010).…”

“…Continuing on these fields,Amadieu and Viviani (2010) focus on the role of innovation and entrepreneurship in sustainability by also analyzing the effect of the intangible resources used. The authors combine the resource-based view approach with the market orientation theory to empirically examine the relationship between intangible investments and financial performance Amadieu and Viviani (2010). deliver evidence that intangibles have a negative impact on the firms' financial performance but a positive influence on commercial results.In this cluster, a part of the literature focuses on the relationship between social responsibility and financial performance by using empirical analysis.…”

Wine Sector: Companies' Performance and Green Economy as a Means of Societal Marketing

“…Performance in the wine sector has been analyzed by several scholars Rastoin, 2004 andHeijbroek, 2003) with particular reference to the improvement in some countries, such as French wine companies (Amadieu & Viviani, 2010;Viviani, 2009), Greek companies (Venieris, 1989), South African firms (Esterhuizen & van Rooyen, 2006), or Spanish ones (Su arez-Ortega & AlamoVera, 2005). Moreover, the means of local inter-firm networks in a cluster of cooperatives has been analyzed for its role in the improvement of innovation and economic performance in a cluster of cooperatives (Chiffoleau et al, 2007).…”

Firm Size and Financial Performance: Intermediate Effects of Indebtedness

“…Therefore, we use the subsectors as control variables: Poultry, Swine, and Bovine (dummy variables; 0 means that the firm is not in that subsector, while 1 means that the company belongs to the subsector). We also include Cash (mean of the 4‐year time horizon) and Intangible Assets (mean of the 4‐year time horizon) as control variables (Amadieu & Viviani, ; Fernández‐Olmos & Díez‐Vial, ; Ongore & Kusa, ).…”