Implications of Mediated Market Access—Exploring the Nature of Vertical Relationships within the Croatian Wine Industry

Abstract

The aim of this research was to provide a better understanding of factors influencing the performance of (small) agricultural producers. Considering the importance of agricultural producers, not just for maintaining a steady supply of products but also for the preservation of the population (and cultural tradition) of rural areas, the development of sustainable agricultural business is a matter of public interest. This paper considers wine producers and their market channels, i.e., the factors influencing the relationship between wine producers and market intermediaries, by applying ideas taken from agency theory. We developed a conceptual model with our defined measure of agency costs as the mediator variable between multiple regressors and the firms’ financial and non-financial performance as regressions. We used the approach of Baron and Kenny to investigate whether agency costs act as a mediator variable. The data needed to test the proposed conceptual model were collected through questionnaires and contextual interviews with the Croatian wine producers (n = 124). We found that more self-reliance in the distribution process, supported by factors related to the bargaining strength, had a positive influence on wine producers’ performance. The results also support the assumption that agency costs act as a full mediator variable between a producer’s attributes and its performance.

Does Ecological Agriculture Moderate the Relationship between Wine Tourism and Economic Performance? A Structural Equation Analysis Applied to the Ribera del Duero Wine Context

“…Regarding the positive link between organic agricultural practices and the economic performance of wineries, there is recent research that coincides with the findings of the study, such as that of Merot et al [83], Ingrassia et al [84], and Katunar et al [85], who demonstrate the capacity of these practices to improve the economic performance of wineries, since they favor the green organizational image, enable the attraction of new wine tourists, and allow for them to offer organic wines to the market. The results regarding the mediating effect of ecological agriculture in the wine tourism-economic performance relationship are pioneering, since, to our knowledge, there are no previous studies that have addressed the mediating effect of ecological agriculture in the study of the main relationship.…”

Determinants of frequency of wine consumption in Croatia

“…Overall, our results con-tribute to the existing literature on market segmen-tation in specific industries, as wine producers can use them to better differentiate individuals and groups that are more likely to become their customers. This is especially true for small wine producers who often rely on direct sales by inviting consumers to wine tastings at their wine basements/stores (Katunar et al, 2020b). However, some of our other expectations were not confirmed.…”