Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business

Abstract

The purpose of this paper is to examine the impact that various types of business model extensions (hospitality and tourism, online sales platforms, and sustainability) have on the winery business. The research is based on company data and online observations of N = 886 German wineries and deploys a content analysis, netnography, and structural equation modeling (SEM) in order to test the hypothesis on business model extensions of wineries, which have been set forth in the previous literature. The findings indicate that business model extensions related to online sales platforms have a positive impact on winery business size. These results mean that developing online sales platforms enlarges the winery BM (business model) size and type (manager-run, state-owned, or cooperatives). The paper presents in detail the impact of winery BM extensions on winery BM model type and size, thereby contributing to the literature on business model innovation.

Agro-Environmental Practices and Business Performance in the Wine Sector

“…An attractive environment can contribute to understanding the perceptions of customers on the knowledge of the environmental activities of wineries and promote the environmental dimension of the wineries business through direct marketing actions [100]. The findings indicate a negative link between the innovation and the environmental behavior, which is not consistent with the results reported in [86,97,152]. In the light of other factors, we should mention the internal organizational factors that can affect the willingness to innovate, which would require more financial resources, human resources and growth of wineries to a higher level, for which wineries may not be ready.…”

The proactive role played by sustainable wineries at times of economic crisis

“…Sustainability should be measured, as stated by Dressler and Paunovic (2020), and there should be more nuanced differentiation so that a methodology using a non-binary dependent variable can be used. Also, the range of innovations should be expanded to included activities such as hospitality and tourism (Dressler and Paunovic (2021a, 2021b).…”

“…, 2019; Pomarici and Vecchio, 2019; García-Cortijo et al ., 2023). Various studies propose that the core business of wine production should be expanded to include environmental activities (Madanaguli, 2021; Dressler and Paunovic, 2021a, b).…”

Sustainable Rural Healthcare Entrepreneurship: A Case Study of Serbia

“…Sustainability-oriented innovation can be defined as an intentional change in organizational values and/or philosophy, practices, and processes, as well as products and/or services [1]. Both sustainability-oriented innovation and sustainability entrepreneurship should be treated in parallel to understand the field of change for sustainability: sustainable entrepreneurship can be defined as the realization of sustainability innovations in the mainstream market to provide benefits to society and capture value in return [2,3]. Previous literature recognizes the important role that organizational innovation plays in improving the quality and curbing the raising costs of healthcare services and especially the challenges related to sustaining grassroots innovation starting from the frontline clinicians themselves [25].…”

“…While the topic of sustainability innovation deals with the efficiency of business operations and social and environmental goals, sustainability entrepreneurship needs to integrate sustainable company performance on the economic market with the benefits for society and the environment [2]. However, in the case of clearly defined traditional entrepreneurial core business, venturing out into the uncharted territories of sustainability innovation needs to be better understood from a theoretical and practical point of view: under what conditions can sustainability-oriented business model innovation translate into business model migration [3]?…”