Determinants of organic wine production: An application in the DOC Rioja wine industry

  • Natalia Dejo-Oricain Department of Management and Business Administration. Facultad de Economía y Empresa. Universidad de Zaragoza. Gran Vía 2, 50005 Zaragoza, Spain https://orcid.org/0000-0002-7424-6252
  • Marta Fernández-Olmos Department of Management and Business Administration. Facultad de Economía y Empresa. Universidad de Zaragoza. Gran Vía 2, 50005 Zaragoza, Spain https://orcid.org/0000-0002-5623-2391
  • Ana F. Gargallo-Castel Department of Management and Business Administration. Facultad de Ciencias Sociales y Humanas de Teruel. Universidad de Zaragoza. C/Atarazana nº4, 44003 Teruel, Spain https://orcid.org/0000-0001-8054-8997
Keywords: cluster approach, firm resources, organic wine production, resource-based view

Abstract

Aim of study: To analyse the role that valuable resources and agglomeration would play in the decision to produce organic wines.

Area of study: The Controlled Designation of Origin (DOC) Rioja wine industry in Spain, the leading qualified denomination of origin of Spain.

Material and methods: Taking into account the nature of the dependent variable, a binomial logit model was used.

Main results: This paper confirms the significance of valuable resources such as financial resources and human resources, but also of knowledge-based spillovers from proximate organic wineries in improving the probability of producing organic wines. Contrary to expectations, technological resources and experience in the wine industry have no significant effect.

Research highlights: The resource based-view and the cluster approach are complementary to improving the predictive elements of producing organic wine in the DOC Rioja wine industry. The authors were unable to pre-register the analysis involving primary data collection before the data collection exercise starts. This requirement is from January 2022 and the survey period of this paper was on 2017. According to the editorial policy of the journal this analysis should be considered exploratory.

Downloads

Download data is not yet available.

References

Aldrich JH, Nelson FD, 1984. Linear probability, logit and probit models. Sage Publ. Inc, Ser. Quantitative applications in the social sciences, 95 pp. https://doi.org/10.4135/9781412984744

Alonso A, Niklas B, Rinke W, Moscovici D, Gow J, Valenzuela L, Mihailescu R, 2021. Consumer preferences for certified wines in France: A comparison of sustainable labels. Wine Econ Policy 10(2): 75-86.

Amemiya T, 1984. Tobit models: A survey. J Econom 24: 3-61. https://doi.org/10.1016/0304-4076(84)90074-5

Arikan AT, 2009. Interfirm knowledge exchanges and the knowledge creation capability of clusters. Acad Manage Rev 39(4): 658-676. https://doi.org/10.5465/AMR.2009.44885776

Barney J, 1991. Firm resources and sustained competitive advantage. J Manage 17: 99-120. https://doi.org/10.1177/014920639101700108

Barrios S, Görg H, Strobl E, 2003. Explaining firms' export behaviour: R&D, spillovers and the destination market. Oxford Bull Econ Stat 65: 475-496. https://doi.org/10.1111/1468-0084.t01-1-00058

Becattini G, 1990. The Marshallian industrial district as a socio-economic notion. In: Industrial districts and local economic regeneration; Pyke F, Becattini G, Sengenberger W (eds.). pp: 37-51. International Institute for Labor Studies, Geneva.

Bernard AB, Jensen B, 2004. Why some firms export. Rev Econ Stat 86: 561-569. https://doi.org/10.1162/003465304323031111

Bro AS, Clay DC, Ortega DL, Lopez MC, 2019. Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua. Environ Dev Sustain 21(2): 895-915. https://doi.org/10.1007/s10668-017-0066-y

Burton, M, Rigby D, Young T, 1999. Analysis of the determinants of adoption of organic horticultural techniques in the UK. J Agric Econ 50(1): 47-63. https://doi.org/10.1111/j.1477-9552.1999.tb00794.x

Caliskan A, Celebi D, Pirnar I, 2020. Determinants of organic wine consumption behavior from the perspective of the theory of planned behavior. IJWBR 33 (3): 360-376. https://doi.org/10.1108/IJWBR-05-2020-0017

Castellini A, Mauracher C, Procidano I, Sacchi G, 2014. Italian market of organic wine: a survey on production system characteristics and marketing strategies. Wine Econ Policy 3(2): 71-80. https://doi.org/10.1016/j.wep.2014.12.001

Castellini A, Mauracher C, Troiano S, 2017. An overview of the biodynamic wine sector. Int J Wine Res 9: 1-11. https://doi.org/10.2147/IJWR.S69126

Cavusgil ST, Naor J, 1987. Firm and management characteristics as discriminators of export-marketing activity. J Bus Res 15(3): 221-35. https://doi.org/10.1016/0148-2963(87)90025-7

Clerides S, Lach S, Tybout J, 1998. Is learning by exporting important? Micro-dynamic evidence from Colombia, Mexico and Morocco. Q J Econ 113: 903-947. https://doi.org/10.1162/003355398555784

Cobelli N, Chiarini A, Giaretta E, 2021. Enabling factors for adopting sustainable, organic wine production. TQM Journal 33(6): 1572-1588. https://doi.org/10.1108/TQM-11-2020-0275

Costa-Campi MT, Viladecans-Marsal E, 1999. The district effect and the competitiveness of manufacturing companies in local productive systems. Urban Stud 36: 2085-2098. https://doi.org/10.1080/0042098992557

David Ch, Mundler P, Demarle O, Ingrand S, 2010. Long-term strategies and flexibility of organic farmers in southeastern France. Int J Sustain Agric Res 8(4): 305-318. https://doi.org/10.3763/ijas.2010.0497

De Marchi V, 2012. Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms. Res Policy 41(3): 614-623. https://doi.org/10.1016/j.respol.2011.10.002

De Steur H, Temmerman H, Gellynck X, Canavari M, 2020. Drivers, adoption, and evaluation of sustainability practices in Italian wine SMEs. Bus Strategy Environ 29(2): 744-762. https://doi.org/10.1002/bse.2436

Dei Ottati G, 1991. The economic bases of diffuse industrialization. Int Stud Manag Organ 21: 53-74. https://doi.org/10.1080/00208825.1991.11656549

Dierickx I, Cool K, 1989. Asset stock accumulation and the sustainability of competitive advantage: Reply. Manag Sci 35(12): 1514-1514. https://doi.org/10.1287/mnsc.35.12.1514

Díez-Vial I, Fernández-Olmos M, 2013. Internal resources, local externalities and export performance: An application in the Iberian ham cluster. J Manag 19(4): 478-497. https://doi.org/10.1017/jmo.2013.32

Dodds R, Graci S, Ko S, Walker L, 2013. What drives environmental sustainability in the New Zealand wine industry? An examination of driving factors and practices. Int J Wine Bus Res 25(3): 164-184. https://doi.org/10.1108/IJWBR-2012-0015

EC, 2012. Commission Implementing Regulation (EU) No 203/2012 of 8 March 2012 amending Regulation (EC) No 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No 834/2007, as regards detailed rules on organic wine. 9 March 2012.

Expósito-Langa M, Molina-Morales FX, 2010. How relational dimensions affect knowledge redundancy in industrial clusters. Eur Plan Stud 18(12): 1975-1992. https://doi.org/10.1080/09654313.2010.515817

Fairweather JR, 1999. Understanding how farmers choose between organic and conventional production: Results from New Zealand and policy implications. Agric Hum Values 16(1): 51-63.

Fernández- Olmos M, 2011. The determinants of internationalization: evidence from the wine industry. Appl Econ Perspect Policy 33(3): 384-401. https://doi.org/10.1093/aepp/ppr017

Futing T, 1994. Interpreting probability models: Logit, probit and other generalized linear models. Sage, Newbury Park, CA, USA. 88 pp.

Giuliani E, 2005. Cluster absorptive capacity: Why do some clusters forge ahead and others lag behind? Eur Urban Reg Stud 12(3): 269-288. https://doi.org/10.1177/0969776405056593

Grant RM, 1996. Toward a knowledge-based theory of the firm. Strateg Manag J 17: 109-122. https://doi.org/10.1002/smj.4250171110

Greenaway D, Kneller R, 2008. Exporting, productivity and agglomeration. Eur Econ Rev 52: 919-939. https://doi.org/10.1016/j.euroecorev.2007.07.001

Greene WH, 2000. Econometric analysis (4th ed.). Prentice Hall, Englewood Cliffs, NJ, USA. 802 pp.

Horbach J, 2008. Determinants of environmental innovation-New evidence from German panel data sources. Res Policy 37(1): 163-173. https://doi.org/10.1016/j.respol.2007.08.006

Katsikeas C, Morgan R, 1994. Differences in perceptions of exporting problems based on firm size and export market experience. Eur J Mark 28(5): 17-35. https://doi.org/10.1108/03090569410062014

Kijsanayotin B, Pannarunothai S, Speedie SM, 2009. Factors influencing health information technology adoption in Thailand's community health centers: Applying the UTAUT model. Int J Med Inform 78(6): 404-416. https://doi.org/10.1016/j.ijmedinf.2008.12.005

Laureati M, Pagliarini E, 2016. Sustainability and organic wine production. In: Wine safety, consumer preference, and human health, pp. 183-199. Springer, Cham. https://doi.org/10.1007/978-3-319-24514-0_9

Lovely M, Rosenthal SS, Sharma S, 2005. Information, agglomeration, and the headquarters of US exporters. Reg Sci Urban Econ 35: 167-191. https://doi.org/10.1016/j.regsciurbeco.2003.09.002

Maddala GS, 1983. Limited-dependent and qualitative variables in econometrics. Cambridge University Press, New York/Cambridge, 401 pp. https://doi.org/10.1017/CBO9780511810176

Malmberg A, Malmberg B, Lundequist P, 2000. Agglomeration and firm performance: Economies of scale, localization and urbanization among Swedish export firms. Environ Plan 32: 305-321. https://doi.org/10.1068/a31202

Maskell P, 2001. Towards a knowledge-based theory of the geographical cluster. Ind Corp Change 10: 921-943. https://doi.org/10.1093/icc/10.4.921

Maskell P, Malmberg A, 1999. Localised learning and industrial competitiveness. Camb J Econ 23(2): 167-185. https://doi.org/10.1093/cje/23.2.167

Mazzocchi C, Ruggeri G, Corsi S, 2019. Consumers' preferences for biodiversity in vineyards: A choice experiment on wine. Wine Econ Policy 8(2): 155-164. https://doi.org/10.1016/j.wep.2019.09.002

Nave A, do Paço A, Duarte P, 2021. A systematic literature review on sustainability in the wine tourism industry: Insights and perspectives. IntJ Wine Bus Res 33(4): 457-480.

OEMV, 2019. Informes Mercado Mundial del Vino. Observatorio Español del Mercado del Vino. https://www.oemv.es/

Peteraf MA, 1993. The cornerstones of competitive advantage: a resource‐based view. Strateg Manag J 14(3): 179-191. https://doi.org/10.1002/smj.4250140303

Polanyi M, 1966. The logic of tacit inference. J Philos 41(155): 1-18. https://doi.org/10.1017/S0031819100066110

Porter M, 1998. Clusters and the new economics of competitiveness. Harv Bus Rev (Dec): 77-90.

Pullman ME, Maloni MJ, Dillard J, 2010. Sustainability practices in food supply chains: how is wine different? J Wine Res 21(1): 35-56. https://doi.org/10.1080/09571264.2010.495853

Reid S, 1984. Information acquisition and export entry decisions in small firms. J Bus Res 12: 141-57. https://doi.org/10.1016/0148-2963(84)90002-X

Rodrigues H, Rolaz J, Franco-Luesma E, Sáenz-Navajas MP, Behrens J, Valentin D, Depetris-Chauvin N, 2020. How the country-of-origin impacts wine traders' mental representation about wines: A study in a world wine trade fair. Int Food Res J 137: 109480. https://doi.org/10.1016/j.foodres.2020.109480

Silva YEL, Cobos ÁR, 2017. Innovation in Rioja wines. Revista Ciencia e Investigación 2(8): 44-49. https://doi.org/10.26910/issn.2528-8083vol2iss8.2017pp44-49

Steiner R, 1920. Grenzen der Naturerkenntnis. Siehe insbesondere den Vortrag vom, 29(9), 124 pp.

Taylor S, Todd P, 1995. An integrated model of waste management behavior: A test of household recycling and composting intentions. Environ Behav 27(5): 603-630. https://doi.org/10.1177/0013916595275001

Teece D, Pisano G, Shuen A, 1997. Dynamic capabilities and strategic management. Strateg Manag J 18: 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Tozer PR, Galinato SP, Ross CF, Miles CA, McCluskey JJ, 2015. Sensory analysis and willingness to pay for craft cider. J Wine Econ 10(3): 314-328. https://doi.org/10.1017/jwe.2015.30

Wernerfelt B, 1984. A resource‐based view of the firm. Strateg Manag J 5(2): 171-180. https://doi.org/10.1002/smj.4250050207

Published
2022-07-28
How to Cite
Dejo-Oricain, N., Fernández-Olmos, M., & Gargallo-Castel, A. F. (2022). Determinants of organic wine production: An application in the DOC Rioja wine industry. Spanish Journal of Agricultural Research, 20(3), e0104. https://doi.org/10.5424/sjar/2022203-19200
Section
Agricultural economics