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Between Supply and Demand: Intermediaries, Social Networks and the Construction of Quality in the Italian Wine Industry

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  • Vincenza Odorici
  • Raffaele Corrado

Abstract

The working of markets implies decisions based on incomplete and costly information; as a consequence, the mechanisms through which this information is produced and made available to actors are very important. Most prominent among such mechanisms is the role of intermediary actors that do not make production or consumption choices, but influence these choices by sorting products into categories. We focus on intermediary actors that express evaluations of products, as a mechanism that fosters the convergence of supply and demand in exchanges. Personal social networks that connect supply and demand perform this role when exchanges are bound to narrow contexts. Intermediaries replace these ties in mass markets; in such broader context social networks are found here to play an important role in the relationships between intermediary actors and the supply side of the market.

Suggested Citation

  • Vincenza Odorici & Raffaele Corrado, 2004. "Between Supply and Demand: Intermediaries, Social Networks and the Construction of Quality in the Italian Wine Industry," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(2), pages 149-171.
    • Handle: RePEc:kap:jmgtgv:v:8:y:2004:i:2:p:149-171
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    Cited by:

    1. Pollock, Neil & D'Adderio, Luciana & Williams, Robin & Leforestier, Ludovic, 2018. "Conforming or transforming? How organizations respond to multiple rankings," Accounting, Organizations and Society, Elsevier, vol. 64(C), pages 55-68.
    2. Andrea Morrison, 2005. "Inside the Black Box of ‘Industrial Atmosphere’: Knowledge and Information Networks in an Italian wine local system," Working Papers 97, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    3. Abraben, Lane A. & Grogan, Kelly A. & Gao, Zhifeng, 2017. "Organic price premium or penalty? A comparative market analysis of organic wines from Tuscany," Food Policy, Elsevier, vol. 69(C), pages 154-165.
    4. Carter, Elizabeth, 2015. "Constructing quality: Producer power, market organization, and the politics of high value-added markets," MPIfG Discussion Paper 15/9, Max Planck Institute for the Study of Societies.
    5. Morrison, Andrea & Rabellotti, Roberta, 2017. "Gradual catch up and enduring leadership in the global wine industry," Research Policy, Elsevier, vol. 46(2), pages 417-430.
    6. Cusmano, Lucia & Morrison, Andrea & Rabellotti, Roberta, 2010. "Catching up Trajectories in the Wine Sector: A Comparative Study of Chile, Italy, and South Africa," World Development, Elsevier, vol. 38(11), pages 1588-1602, November.
    7. Giacomo Negro & Ming D. Leung, 2013. "“Actual” and Perceptual Effects of Category Spanning," Organization Science, INFORMS, vol. 24(3), pages 684-696, June.
    8. Andrea Morrison & Roberta Rabellotti, 2005. "Knowledge and Information Networks: Evidence from an Italian Wine Local System," KITeS Working Papers 174, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
    9. Vedel, Mette & Geersbro, Jens & Ritter, Thomas, 2012. "Interconnected levels of multi-stage marketing: A triadic approach," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 5(1), pages 1-20.
    10. Florkowski, Wojciech J. & Carew, Richard & He, Senhui, 2008. "British Columbia Consumers' Preferences for Italian Wines: Reputation and Vintage Effects on Wine Quality and Prices," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44403, European Association of Agricultural Economists.

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