SME Managers’ Perceptions of Competitive Pressure and the Adoption of Environmental Practices in Fragmented Industries: A Multi-Country Study in the Wine Industry

Abstract

This study explains how managers' perceptions of pressure from competitors and industry associations to adopt environmental practices are associated with the adoption of such practices, and firm performance in small-and medium-sized enterprises (SMEs) in fragmented industries. First, we hypothesize, in fragmented industries, perceived weaker competitive pressure focuses SME managers' attention on opportunities associated with the adoption of environmental practices, resulting in further adoption of such practices. We also hypothesize that perceived stronger competitive pressure focuses managers' attention on competitive threats and efforts to maximize value creation from adopted practices, thus positively moderating the relationship between adopted environmental practices and financial performance. We test our hypotheses with survey data from wineries and vineyards in Italy, France, Denmark, and the US, and find support for both hypotheses. These findings deepen our understanding of how SMEs in fragmented industries respond to perceived competitive pressure to adopt environmental practices. AbstractThis study explains how managers' perceptions of pressure from competitors and industry associations to adopt environmental practices are associated with the adoption of such practices, and firm performance in small-and medium-sized enterprises (SMEs) in fragmented industries. First, we hypothesize, in fragmented industries, perceived weaker competitive pressure focuses SME managers' attention on opportunities associated with the adoption of environmental practices, resulting in further adoption of such practices. We also hypothesize that perceived stronger competitive pressure focuses managers' attention on competitive threats and efforts to maximize value creation from adopted practices, thus positively moderating the relationship between adopted environmental practices and financial performance. We test our hypotheses with survey data from wineries and vineyards in Italy, France, Denmark, and the US, and find support for both hypotheses. These findings deepen our understanding of how SMEs in fragmented industries respond to perceived competitive pressure to adopt environmental practices.

Place as a nexus for corporate heritage identity: An international study of family-owned wineries

“…Our findings support that indeed, multiple role identities and relative invariance lead to augmented, richer, and more relevant corporate heritage identities (as suggested by Balmer, 2013); however, this study extends understanding by providing cross-cultural evidence of this in the wine industry, which is considered a highly fragmented context (Tyler et al, 2018). The results support that corporate heritage identity traits and strategies are shaped by place corporate heritage and the corporate heritage identities of other firms within the place in which they are conceived, and vice versa.…”

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

“…Policy makers need to expand their efforts to make appropriate regulations to drive the implementation of more sustainable solutions. In addition, governments should expand on supporting SMEs in their journey to adopt sustainability by providing more tax incentives and low‐cost loans as SMEs have limited resources and are more financially vulnerable (Tyler et al, ; Wiesner, Chadee, & Best, ).…”

“…Policy makers need to expand their efforts to make appropriate regulations to drive the implementation of more sustainable solutions. In addition, governments should expand on supporting SMEs in their journey to adopt sustainability by providing more tax incentives and low-cost loans as SMEs have limited resources and are more financially vulnerable(Tyler et al, 2018;Wiesner, Chadee, & Best, 2018).When comparing the top drivers and barriers, their patterns have not changed much in the last few years, and we would have to agree withParker et al (2009) that they have some issues for both researchers and practitioner SMEs. For SMEs, general analysis of drivers and barriers do not help them to decide what exact tools are needed to become environmentally sustainable because those analyses are not specific and do not distinguish between the different types of SMEs.…”

Does Sustainability Push to Reshape Business Models? Evidence from the European Wine Industry

“…France and Italy are major players in the global wine industry, and there has been a growing interest in developing sustainable wine production initiative in these countries. For example, Tyler, Lahneman, Beukel, et al [29], in their study, show that "New World" (e.g., Australia, the United States) wineries are less likely to adopt environmental practices than wine companies in Italy and France. Moreover, a proliferation of initiatives relating to sustainable wine businesses started officially in Italy in 2010 [30].…”