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1 – 10 of 80Timothy I. Ramjaun, Madeleine Pullman, Maneesh Kumar and Vasco Sanchez Rodrigues
This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through…
Abstract
Purpose
This article aims to investigate collaborative procurement as a sourcing strategy amongst competing small enterprises in an effort to reduce their material supply costs through increased efficiencies, bargaining power and economies of scale.
Design/methodology/approach
A case study approach is applied to a network of breweries that are regionally clustered. Interview data from producers, suppliers and industry experts is inductively interpreted to understand the viability, organisational impact and benefits/limitations of joint procurement activities.
Findings
The craft brewing industry follows a market place strategy of differentiation to achieve competitive advantage. This has supply chain implications that promote raw material diversity, which is in conflict with standardisation – a necessary factor for collective buying. Competition impacts information sharing and governance mechanism, while the structural factors of size asymmetry along and across the supply chain influence returns. These issues impact the potential economic benefits of collaborative procurement.
Research limitations/implications
The research propositions have been developed in a specific industry but are generalisable to other companies with a differentiation strategy, especially in the consumer packaged goods sector.
Practical implications
Enabling conditions and constraints are captured in a framework and capability matrix, which can be used by practitioners to assess industry and product feasibility for collaborative procurement.
Originality/value
Previous studies of collaborative procurement have been in the public sector amongst large organisations. This work focusses on coopetition in the context of small businesses to identify the viability and cost-benefit of this strategy.
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Casey Floyd and Gregory B. Fairchild
This case is used in Darden's required first-year course, “Strategic Thinking and Action.”In 2015, Steve and Heidi Crandall, the founders of Devils Backbone Brewing, LLC (DBB)…
Abstract
This case is used in Darden's required first-year course, “Strategic Thinking and Action.”
In 2015, Steve and Heidi Crandall, the founders of Devils Backbone Brewing, LLC (DBB), were looking back on eight years of unanticipated success and significant growth. DBB had created a destination, a brand, and beer that drew people from all over, and it was the largest craft brewery in its region. The entire community, not just loyal beer drinkers, had supported DBB. In addition to funding and zoning accommodations, so many local residents had built their own economic lives around what had been their “little brewery that could.”
But the success had brought challenges, specifically in terms of growth. DBB was consistently not meeting demand in its existing markets and was receiving complaints about out-of-stocks. The Crandalls and their team had to figure out how to grow with, or preferably ahead of, demand for DBB's product. Should DBB build further capacity despite an already exhausted line of credit? Should it employ a contract brewer despite the local authenticity concerns such a move might stir up? Or should it just keep trying to manage business within its existing footprint, comfortably serving its loyal customer base?
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Paulina Ines Rytkönen, Wilhelm Skoglund, Pejvak Oghazi and Daniel Laven
The purpose of this study is shed light on the underlying forces behind entrepreneurship within a regional innovation system (RIS) in a remote rural region. The authors examine…
Abstract
Purpose
The purpose of this study is shed light on the underlying forces behind entrepreneurship within a regional innovation system (RIS) in a remote rural region. The authors examine the following questions: Which are the main underlying forces behind the entrepreneurial process in a rural RIS characterized by traditionally low-tech, small-scale businesses? How can the development of a low-tech regional innovation system be conceptualized?
Design/methodology/approach
The design of the study is based on entrepreneurship theory. Data analysis followed practices used in phenomenography, a research approach used to analyse and identify commonalities and variations in populations' perceptions of a certain phenomenon. Data are composed using semi-structured interviews and a database composed of company information of all firms in the population.
Findings
A proactive mobilization of regional stakeholders and resources can be an important driving force behind the entrepreneurial process and generation of a rural RIS. Innovation can be generated within low-tech industries turning the rural context into an asset. An RIS in a remote rural context can be initiated and orchestrated by regional authorities, but knowledge brokering and orchestration can also be managed by networks of small-scale businesses brought together by mutual benefit and common interests.
Research limitations/implications
Regional innovation systems theory is most often used to study high-tech industries. But by combining regional innovation systems with rural entrepreneurship and entrepreneurship context theory is a fruitful avenue to understand the role of rural entrepreneurship in regional development, even in remote and peripheral regions. Innovation does not need to entail high-tech international environments; it can appear as the result of efforts in low-tech industries in rural and remote environments. The authors’ findings need to be scrutinized; therefore, the authors call for more research on regional innovation systems in rural environments.
Practical implications
It is possible for regional authorities to orchestrate a development process through the actions of a strong regional agent but also by supporting the creation of networks of small businesses that are built on trust and common interests.
Originality/value
This study contributes to the literature with a new perspective to the study of entrepreneurship and of regional innovation systems. Entrepreneurship research with focus on rural contexts most often highlight limits to entrepreneurship and see entrepreneurship as “just running a business”. A perspective that starts from innovation and innovative behaviour, despite the rural context and embedded resources, helps to generate new knowledge that can enrich the understanding of entrepreneurship and also be the foundation for more precise business development policies in rural settings.
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Cortney L. Norris, Marissa Orlowski and Scott Taylor, Jr.
As a result of both shifting social concerns and stricter legislation, many companies are seeking innovative and sustainable solutions for both primary and secondary packaging…
Abstract
Purpose
As a result of both shifting social concerns and stricter legislation, many companies are seeking innovative and sustainable solutions for both primary and secondary packaging. The craft beer industry has made the most notable advancements with a variety of alternatives to the traditional secondary packaging (e.g. plastic rings) used to link beer cans. Yet, despite the impact packaging has on consumer purchase behavior and the environment, secondary packaging has received far less attention in the literature. This study aims to understand consumer perceptions of craft beer secondary packaging on consumers’ willingness to buy via the underlying mechanisms of perceived packaging innovation and sustainability.
Design/methodology/approach
A single-factor between-subjects experiment with four conditions (secondary packaging format: Pak-Tech holder, Keel Clip holder, Glue-Pack holder, Biodegradable holder) was conducted with 354 participants to test the hypothesized serial mediation model.
Findings
The results demonstrate that none of the secondary packaging styles had a direct effect on willingness to buy, meaning that the package style alone does not influence a consumer’s purchase decisions. Critically, the results also revealed indirect effects; specifically, the Keel Clip and Glue-Pack six-pack can holders were perceived as more innovative than the Pak-Tech holder, which in turn positively influenced perceptions of packaging sustainability and subsequent willingness to buy.
Originality/value
The authors’ results extend the research on sustainable secondary packaging and aids craft breweries along with other beverage producers in making informed decisions as the push for sustainable packaging becomes more prominent.
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Kuo-Che Tseng and Yasuyuki Kishi
With the ongoing industrial transformation of the Japanese sake industry and the continuous growth of exports in recent years, terroir, one of the core concepts in the wine…
Abstract
Purpose
With the ongoing industrial transformation of the Japanese sake industry and the continuous growth of exports in recent years, terroir, one of the core concepts in the wine culture, has been strategically used in the sake industry. Therefore, as an essential investigation, the purpose of this study is to elucidate when, how and why terroir has been used in the sake industry. This study starts with the research question: When, how and why has terroir come to be used strategically in the sake industry?
Design/methodology/approach
This study investigates the use of terroir in the Japanese sake industry, examining all 196 newspapers that referenced terroir from 1998 to 2022, sourced from the renowned newspaper database Nikkei Telecom 21. This study’s outcomes have been visualized through categorization work and text mining.
Findings
In this study, the use of terroir in the Japanese sake industry has gained significant momentum since 2015, with a remarkable surge observed in the 2020s. With the continuous growth in sake exports, industry players such as sake brewers are strategically structuring terroir to reinforce the authenticity of the brewing process, emphasizing the uniqueness of natural elements, such as water, sake rice and the natural environment. These findings highlight the critical role of terroir in the Japanese sake industry’s added value expansion.
Originality/value
This study provides objective insights regarding the recent industrial transformation for the practical sake industry, such as sake exporters and distributors. Additionally, this study enables the wine industry’s audience to understand the sake industry’s evolution in terms of wine culture.
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Ismael Castillo-Ortiz, Minwoo Lee, Scott Taylor and Diego Bufquin
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion…
Abstract
Purpose
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion to increase craft beer sales and contribute to faster growth.
Design/methodology/approach
This is a conjoint analysis with a selection of attributes for new or renewed products, marginal disposition to pay for particular characteristics through brand-specific choice-based design, and market simulation.
Findings
This paper clearly demonstrates consumers’ preferences and willingness to pay in Mexico, with a cutting-edge market research technique combining the prioritization of preferred craft beer characteristics, and the price consumers are willing to pay for such product characteristics.
Research limitations/implications
The study's sample size of 501 responses is relatively small compared to the total number of craft beer consumers in Mexico. To enhance the validity and reliability of the findings, future studies should aim to obtain larger samples and compare their results with those of this study.
Practical implications
This study has important implications for craft beer producers, allowing them to develop targeted craft beers with appealing attributes for Mexican consumers, such as color, aroma intensity, alcohol degree intensity, bitterness, foam level and price.
Social implications
This study's market forecasting simulation technique is based on assumptions of consumer behavior and market dynamics. Although relevant variables were considered, unanticipated external factors or market changes could impact the forecasts' accuracy. This will allow for a more comprehensive understanding of craft beer consumer preferences in different markets and enhance the reliability of forecasting techniques.
Originality/value
This paper informs craft beer producers by providing valuable knowledge on customers’ preferences and willingness to pay to enhance craft beer companies’ product development processes.
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Felipe Furtini Haddad, Kelly Carvalho Vieira and João de Deus Souza Carneiro
This paper aims to identify the profiles of beginner and experienced consumers (BCs and ECs) of craft beer and evaluate their perception, knowledge and purchase intention.
Abstract
Purpose
This paper aims to identify the profiles of beginner and experienced consumers (BCs and ECs) of craft beer and evaluate their perception, knowledge and purchase intention.
Design/methodology/approach
A total of 291 craft beer consumers including 148 BCs and 143 ECs participated in the study, which was divided into 2 stages: quantitative research through a questionnaire and conjoint analysis.
Findings
BCs are mostly female, with a lower age, income and consumption frequency, presented a shallower understanding of International Bitterness Units (IBU) and considered 7.0% alcohol by volume (ABV) as a high-relative value in craft beers. Otherwise, ECs are mostly men with a higher age and consumption frequency, and they don't consider 50 IBU as high bitterness. The results of conjoint analysis indicate that both groups of consumers attribute greater relative importance to ABV and nonalcoholic beers had lower purchase intentions. Finally, the authors show that beer with 30 IBU and 4.5% ABV is preferred by both BCs and ECs.
Originality/value
The authors' identification about the distinct behaviors of different groups of consumers, based on their consumption time of craft beer, as managerial implications for industries producing craft beer and, as a theoretical contribution, the authors have defined “BCs” and “ECs” based on the experiences with and durations of craft beer consumption.
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Emmanuel Arthur, George Cudjoe Agbemabiese, George Kofi Amoako and Patrick Amfo Anim
This study aims to explore the role customer satisfaction play in mediating the nexus between commitment, trust, relative dependence and customer loyalty from an emerging market…
Abstract
Purpose
This study aims to explore the role customer satisfaction play in mediating the nexus between commitment, trust, relative dependence and customer loyalty from an emerging market context under a business-to-business (B2B) setting.
Design/methodology/approach
The study was a descriptive survey, and using convenience sampling technique, questionnaires were used to gather data from 356 businesses that were distributors of Guinness Ghana Company Limited. Partial least squares structural equation modeling was used to test the proposed hypotheses for this study, and macro-PROCESS was performed to test the mediating effect of customer satisfaction.
Findings
The findings show that relative dependence had the most considerable significant and positive impact on B2B partners satisfaction, followed by commitment and trust, respectively. A positive and significant relationship was also found between B2B firms’ satisfaction and loyalty. The result also indicates that customer satisfaction mediates the relationship between commitment, trust, relative dependence and B2B loyalty.
Practical implications
Practitioners can manipulate specific relative dependence, commitment and trust features to increase customer satisfaction with their firm’s services, thus ensuring longer-term customer loyalty.
Originality/value
Drawing on the social exchange theory, this study provides a more profound perspective focusing on an emerging market context, by examining from a B2B setting the significance of commitment, trust, relative dependence and B2B partners satisfaction on loyalty.
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Vikas Gupta and Manohar Sajnani
This paper aims to explore the risk and benefit perceptions influencing beer patrons’ purchase and consumption decisions in India. It delves into the drivers behind consumers’…
Abstract
Purpose
This paper aims to explore the risk and benefit perceptions influencing beer patrons’ purchase and consumption decisions in India. It delves into the drivers behind consumers’ consumption patterns and attitudes towards beer, which subsequently impact their behavioural intentions, including word-of-mouth recommendations and repurchase intentions.
Design/methodology/approach
The study uses a structured questionnaire to collect data from 306 beer patrons in Delhi and the National Capital Region. Through exploratory factor analysis and structural equation modelling, the research examines the risk (5) and benefit (3) factors associated with beer consumption using a factor model consisting of 29 constructs. A conceptual framework illustrates the interrelationships between variables, which are subsequently validated empirically.
Findings
The findings reveal that patrons’ attitudes towards beer are influenced by their perceptions of risk and benefit. Specifically, health and socio-psychological risks are identified as the most significant and negatively impacting factors on patrons’ attitudes. Factorial analysis demonstrates that patrons’ attitudes towards beer are positively influenced by their perception of benefits such as value for money, sensory appeal and convenience. Furthermore, the study highlights that an increase in benefit perception or a decrease in risk perception leads to a favourable shift in patrons’ attitudes towards beer.
Originality/value
To the best of the authors’ knowledge, this study will be the first to investigate how beer consumers’ consumption patterns and purchase decisions are impacted by assessing consumer risk and benefit perceptions. This study will also aid stakeholders in tailoring their beer offerings better to meet the desires and requirements of their customers.
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Shahbaz Sharif, Shafique Ur Rehman, Zeshan Ahmad, Omaima Munawar Albadry and Muhammad Zeeshan
The research on consumerism has been dramatically rising in recent decades. However, in the food industry, little research has been empirically conducted in the beverage industry…
Abstract
Purpose
The research on consumerism has been dramatically rising in recent decades. However, in the food industry, little research has been empirically conducted in the beverage industry. This research empirically tests the consequences of consumer perceptions: perceived price (PPR), perceived quality (PQ), perceived packaging (PPG) and perceived taste (PT) on repurchase intention (RI) particularly; it unveils the consumer attributes, e.g. gender, age and ethnicity between consumer perceptions and RI of the consumers.
Design/methodology/approach
The data were collected from 403 consumers of the beverage industry (e.g. Nestle, Mitchell's Fruit Farms, Murree Brewery and OMORE) in Pakistan. The researchers used online survey questionnaires followed by a cross-sectional approach because data collection physically was not possible due to COVID-19.
Findings
Data were analyzed by Smart partial least square structural equation modeling (PLS-SEM) 3.3.3, and the results supported the significant influence of consumer perceptions separately, e.g. PPR, PQ, PPG and PT on RI. Additionally, gender, age and ethnicity were found to have a moderating role between consumer perceptions and RI, so, the truth of having consumer attributes has been revealed.
Practical implications
The managers of beverage industries should provide ethical and operational strategies to tackle consumer's problems based on cultural norms. Furthermore, they should make sensible measures for the quality branding of the beverage products. In this way, the consumers will have a better experience of quality, price, taste and packaging, in turn, to RI.
Originality/value
This research targeted the beverage industry that needs facts and figures based on consumer attributes, e.g. age, gender and ethnicity. This research also disclosed the behaviors of consumers according to their gender, age and area of residence.
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