From Douro to Napa: cluster evolution and strategic priorities in wine regions

Abstract

Purpose This study aims to examine how the stage of a wine cluster’s life cycle shapes firms’ strategic and marketing priorities. It compares the Douro (Portugal), an emerging cluster in path development, and Napa Valley (USA), a mature cluster in path sustainment, to understand how geographic and institutional contexts condition firms’ approaches to differentiation, diversification, cost leadership and internationalisation. Design/methodology/approach An exploratory comparative quantitative design was applied using a firm-level survey covering 2010–2019. Strategies were grouped into business (cost leadership, differentiation and focus) and corporate (diversification, vertical integration and internationalisation) dimensions. Mann−Whitney U tests were used to explore patterns of difference between clusters. Given the small, uneven samples and the relatively high number of strategy items, the findings are interpreted as exploratory and hypothesis-generating rather than confirmatory. The analysis integrates the resource-based view (RBV) and cluster life cycle (CLC) theory to examine stage-contingent strategy-context alignment. Findings Exploratory results suggest two distinct strategic logics. Douro firms appear to emphasise diversification, cost efficiency, client-specific adaptation, vertical integration and international expansion, reflecting adaptive restructuring and experimentation. Napa firms appear to prioritise premium quality, brand leadership and resilience, consistent with sustainment dynamics. Several items − such as efficiency, cost control, packaging differentiation, client-specific customisation, commercial subsidiaries and market share − show between-cluster differences that warrant further testing with larger samples. Research limitations/implications The small, uneven sample (Douro = 14; Napa = 15), the large number of analysed items and the reliance on retrospective self-reported data limit generalisability and statistical power. Future research should expand to multi-cluster, longitudinal analyses integrating network position, firm-level capabilities and archival performance metrics. Practical implications Managers in developmental clusters should treat cost discipline, market-facing differentiation and selective forward integration as complementary levers for export growth, while managers in mature clusters should protect premium quality and brand equity while investing selectively in resilience and adaptation. Policymakers should tailor support to cluster maturity − export readiness, logistics and capability building in new-path clusters and branding, sustainability and resilience in mature clusters. Originality/value This study provides the first exploratory, firm-level quantitative cross-cluster comparison linking CLC stages to strategic priorities in the wine industry. It advances prior qualitative CLC-strategy work by showing both stage-contingent patterns and intra-cluster heterogeneity, suggesting that cluster stage structures the dominant strategic opportunity set, while firm resources help explain deviations from the dominant cluster logic.

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