Dynamic capabilities in the context of Brexit and international wine business: An exploratory two‐country study

Abstract

This exploratory study proposes a conceptual framework based on the dynamic capabilities approach (DCA) to advance the understanding of firms' responses to turbulence, illustrated by the Brexit phenomenon. The case of wine producers is examined, with a particular focus on perceived impacts of and responses to Brexit among wineries predominantly involved in exports.Data from 281 mainly micro and small exporting Italian and Spanish winery firms were gathered.Various differences emerged in how both groups of businesses perceived Brexit's impacts, and how they planned to respond. Some of these ways revealed principles associated with the DCA, such as possessing critical organizational resources, notably, tangible, intangible, and human to create capabilities. Furthermore, while various comments denoted indecisiveness and uncertainty, others underscored the vital need to exploit opportunities through engaging with new international consumer markets. Overall, the proposed framework facilitates an in-depth understanding of winery entrepreneurs' strategic behavior in response to turbulent situations.

Entrepreneurial passion and family SMEs internationalization success: examining the moderating effect of the adversity of fragile countries

“…Similarly, Gomez-Meji et al (2010) argued that decision-makers may be pulled by the risk avoidance consideration in family SMEs toward larger internationalization to make the domestic business risks less. Likewise, other studies assume that the environment hostility and the shocks within the domestic market influence the internationalization decisions of SMEs (Marano et al , 2016; Duarte Alonso and Kok, 2019; Sawant et al , 2021). Undoubtedly, there is evidence that the personal attributes and traits of the decision-makers of family SMEs are critical determinants in coping with challenges despite the regulatory or support of developing and emerging economies (Bu and Cuervo-Cazurra, 2020).…”

Understanding the De‐internationalization of Entrepreneurial SMEs in a Volatile Context: A Reconnoitre on the Unique Compositions of Internal and External Factors

“…, 2021). In this regard, geopolitical institutions and shocks impact the continuation of the international operations of SMEs (Duarte Alonso and Kok, 2019; Sawant, Nachum and Panibratov, 2021). An example of severe geopolitical change in the home country is the UK's decision to withdraw from the European Union (Brexit), which imposed many challenges to SMEs’ operations in European countries, for instance regulatory barriers and increased costs of operation, such as in human resources and supply chains (Brown, Liñares‐Zegarra and Wilson, 2019).…”