Environmental strategy: does it lead to competitive advantage in the US wine industry?

Thomas S. Atkin · Armand Gilinsky · Sandra K. Newton

118 citations0/0 files storedInternational Journal of Wine Business Research

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Environmental Sustainability in Business Quality and Management Systems Wine Industry and Tourism

Abstract

Purpose The purpose of this paper is to investigate and compare the perceptions of competitive advantage (cost leadership, differentiation, and performance) of those wineries which have implemented a clear business case for an environmental management system (EMS) and those which have not. Benefits and challenges of sustainability practices are also addressed. Design/methodology/approach Data were collected via self‐report web‐based survey. Of the 98 respondents, over 80 per cent were family‐owned, family‐managed. Findings Those respondents with a clear business case for EMS exhibited significant differences in cost leadership and differentiation advantages over those without a clear business case for EMS. Those with a clear EMS derived significantly greater supply chain optimization and operational efficiencies than those without a clear EMS. Those with a clear EMS also felt that they gained an enhanced ability to enter new markets to a much greater extent than those without a clear EMS. Results of this study demonstrate a significantly higher level of commitment by those respondents with a clear EMS when addressing sustainability initiatives during a current economic down turn over those who did not. Those respondents who had a clear EMS indicated that they had somewhat increased their sustainability commitments, rather than conducting business as usual with no change or somewhat decreasing sustainability commitments as those who did not have a clear EMS. Originality/value Activities that create competitive advantages for wine businesses are understudied; this research bridges that gap.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1984A resource‐based view of the firm 1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 1985Competitive Advantage: Creating and Sustaining Superior Performance 1993The cornerstones of competitive advantage: A resource‐based view 1982Mail and Telephone Surveys: The Total Design Method.1997THE CORPORATE SOCIAL PERFORMANCE-FINANCIAL PERFORMANCE LINK

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