TY  - JOUR
AB  - Purpose This paper aims to study the effects of innovation on the profitability of large wineries. In particular, organic growth is evaluated versus external growth.Design/methodology/approach Data from balance sheets over more than a decade are used. The analysis is limited to large Italian wineries to include firms that constantly invest in R&D in the sample. The analysis focuses on 25 Italian wineries observed over eight years. Panel data estimation is used to analyse these data.Findings The paper shows that investments in R&D increase the profitability of innovative wineries in the long run but decrease it in the short run. Moreover, because of financial constraints, some wineries may invest too few resources in R&D.Research limitations/implications The main limitation is that the focus is restricted to large wine producers, while many small producers that do not generally invest in R&D exist in the market. The practical implication is that governments should support R&D investments of wineries.Originality/value The main contributions are to show empirically the effects of investing in R&D on the profitability of large wineries and to highlight the possible presence of severe financial constraints, which require policy interventions.
VL  - 31
IS  - 2
SN  - 1751-1062
DO  - 10.1108/IJWBR-11-2017-0069
UR  - https://doi.org/10.1108/IJWBR-11-2017-0069
AU  - La Porta Valentina
AU  - Migheli Matteo
PY  - 2019
Y1  - 2019/01/01
TI  - Grapes grow better in the backyard: The effect of organic growth strategies on Italian wineries’ profits
T2  - International Journal of Wine Business Research
PB  - Emerald Publishing Limited
SP  - 243
EP  - 259
Y2  - 2024/04/23
ER  -