The performance implications of "grow or buy" decisions in the wine industry
AbstractThis 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 InfoArticle provided by Elsevier in its journal Food Policy.
Volume (Year): 35 (2010)
Issue (Month): 3 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/foodpol
Vertical integration Viticulture Transaction cost economics Performance;
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