PurposeOur paper analyses how a strategy based on the combination of tradition and innovation can offer a competitive advantage to a medium-sized family firm operating in the wine sector.
Design/methodology/approachThis research focuses on one case study. The subject of the case study under analysis is Pio Cesare, an internationally recognised fine wine Italian company.
FindingsPio Cesare is characterized by a strong combination of tradition and innovation in terms of products and processes. Innovation and tradition are not opposites; on the contrary, a blend of the two has been crucial in achieving and maintaining a sustainable competitive advantage.
Research limitations/implicationsThe formalization of an effective blend of tradition and innovation, especially in a family business, and an effective dissemination of the company philosophy to future generations, calls for a more in-depth study. This study has some limitations, which determined by the applied methodology. Multiple case study method would be useful. In relation to the interview technique, we would set out to increase the number of interviews, by also questioning managers and employees working, as opposed to family members.
Practical implicationsPractical implications relate to different groups of stakeholders: for owners and management, for investors, for organizations and institutions working on a territory promotion and in the tourism sector, and for politicians and local authorities.
Originality/valueIt identifies which business model a family winery business could be adopted in order to manage such strategies of innovation in respect to traditions, filling the gap in the literature.Keywords: wine sector; family businesses; innovation; tradition; territory; cultural identity 2
IntroductionThe wine sector is one of the most representative economic activities in many countries in terms of employment and companies revenues (Bigliardi and Galati, 2013;Giacosa et al., 2014a;Menrad, 2004).Family businesses are common in the wine sector, due to both the tradition of some long-standing family companies (Giacosa et al., 2014b; Contò and Lopez, 2008). A sort of "wine factor" is created (Georgiou and Vrontis, 2012): indeed, the wine represents a set of family values, symbols, and traditions rooted in the area in which the family is based, and more so if the family has a good reputation in the market (Gallucci and Nave, 2012).Although innovation strategy is a critical issue for family businesses (Bresciani et al., 2013; Craig and Moores, 2006), the literature on how family wine businesses approach innovation strategy is rather scarce and the relevance and significance of family businesses to the wine sector requires further, more in-depth studies of all aspects of the business (Contò et al., 2015;Orth et al., 2007). Indeed, a study of the most relevant research databases (Google Scholars, EBSCO) and international journals on family businesses (such as Family Business Review and Journal of Family Business Strategy), reveal a lack of research in i...