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Do institutional networks affect winery survival?

Marta Fernández-Olmos (Business and Economics, University of Zaragoza, Zaragoza, Spain)
Ana Felicitas Gargallo-Castel (University of Zaragoza, Zaragoza, Spain)
Giulio Malorgio (Agricultural and Food Sciences, University of Bologna, Bologna, Italy)

British Food Journal

ISSN: 0007-070X

Article publication date: 4 March 2021

Issue publication date: 29 June 2021

250

Abstract

Purpose

The present study aims to provide new evidence regarding the factors that determine the survival of firms in the Spanish wine industry and to improve the understanding of sector dynamics.

Design/methodology/approach

The empirical analysis, conducted over a representative sample of wineries in the DOC Rioja wine industry, is based on non-parametric (Kaplan–Meier graph) and semi-parametric survival models (Cox proportional hazard model).

Findings

The empirical model finds that wineries with a higher number of networks with institutions enjoy better survival prospects. This study also shows that a winery’s previous performance affects the winery’s survival probability; therefore, successful wineries in the past encounter a smaller hazard of exit. Although spending on R&D and exporting are factors likely to improve wineries' efficiency and competitiveness, these factors did not contribute significantly to the survival of DOC Rioja wineries.

Originality/value

This paper makes a significant contribution to the understanding of the determinants of wineries' survival and has important policy implications. In order to raise the probability of survival, policy makers should promote the networks that link wineries and institutions. Moreover, this study is based on survival analysis which, although frequently used in medical and behavioural sciences, has rarely been applied to wine economics. Finally, it uses a unique data set obtained from primary data collection, which previous studies have not analysed in relation to the probability of winery survival.

Keywords

Acknowledgements

This research was supported by project grant ECO2016-77-P (AEI/FEDER, UE) and the COMPETE (S52_20R) research group (Government of Aragón -Spain- and FEDER 2020-2022 “Construyendo Europa desde Aragón”).

Citation

Fernández-Olmos, M., Gargallo-Castel, A.F. and Malorgio, G. (2021), "Do institutional networks affect winery survival?", British Food Journal, Vol. 123 No. 7, pp. 2478-2491. https://doi.org/10.1108/BFJ-09-2020-0836

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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