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Network Learning, Principal-Agent Conflict, and Award-Winning Wine-Making in Chile's Colchagua Valley

Author

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  • David Hojman

    () (Management School, University of Liverpool, UK)

Abstract

Chile’s Colchagua Valley is both a geographical cluster of wineries and a dynamic learning network of wine-making professionals. A principal-agent problem arises in that the latter knowledge network is frowned upon by owners and top managers. Whereas experts aim at maximising quality, firms are interested in profits. Individual, personal success as a world-class expert is worth more to each professional, than to the respective winery. This conflict is compounded by traditional, authoritarian industrial relations. Multiple regression results confirm that expert network activity is a very poor predictor of award-winning international performance, or profits.

Suggested Citation

  • David Hojman, 2005. "Network Learning, Principal-Agent Conflict, and Award-Winning Wine-Making in Chile's Colchagua Valley," Research Papers 200512, University of Liverpool Management School.
  • Handle: RePEc:liv:livedp:200512
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    File URL: http://www.liv.ac.uk/managementschool/research/working%20papers/wp200512.pdf
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    References listed on IDEAS

    as
    1. Scott Morton, Fiona M & Podolny, Joel M, 2002. "Love or Money? The Effects of Owner Motivation in the California Wine Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 50(4), pages 431-456, December.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Networks; Principal-Agent; Wine; Chile;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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