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The performance implications of "grow or buy" decisions in the wine industry

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  • Fernández Olmos, Marta
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    Abstract

    This paper investigates how wineries' decisions to grow or buy their provisions of grape affect their viticultural performance. While previous literature in agrarian economics suggests a direct association between vertical integration and performance, this research largely neglects the impact of transaction cost variables on governance mode choice and firm performance. This paper first demonstrates that neither outsourcing nor vertical integration per se result in superior performance; rather, a winery's viticultural performance is contingent upon the alignment of winery's governance decisions with the predictions of transaction cost theory.

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    Bibliographic Info

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 35 (2010)
    Issue (Month): 3 (June)
    Pages: 256-264

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    Handle: RePEc:eee:jfpoli:v:35:y:2010:i:3:p:256-264

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    Web page: http://www.elsevier.com/locate/foodpol

    Related research

    Keywords: Vertical integration Viticulture Transaction cost economics Performance;

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