Salta al menu principale di navigazione Salta al contenuto principale Salta al piè di pagina del sito
FrancoAngeli Journals

Articles

N. 1 (2025)

Value Creation in Tradition-led Industries: The Role of Innovative Practices. The Empirical Evidence from the Italian Wine Industry

DOI
https://doi.org/10.3280/cgrds1-2025oa19199
Inviata
18 gennaio 2025
Pubblicato
05-05-2025

Abstract

In this study, we investigate whether firms create value in a tradition-led setting, through innovative efforts. Prior research has observed that in such a setting some actors opt for a creative representation of established products (i.e., a song, an opera, a piece of art, a fashion item, and so on); in contrast, others rely on a more traditional interpretation of the same products. Less investigated, to date, has been whether the decision to opt for an innovative behavior in a tradition-led context leads to value creation, or not. To this end, we conducted research in the Italian wine industry between 1999 and 2009 to investigate whether adopting innovative practices (i.e., aging wine in barrique), led to value creation and what other occurrences intervened in the value creation dynamic. Our findings suggest that innovation sustains value creation and that, in a tradition-led context, a firm’s portfolio breadth negatively moderates the above relationship.

Riferimenti bibliografici

  1. Antinori P. (2011). Il Profumo del Chianti. Milano: Mondadori.
  2. Bastianich J., Lynch D. (2005). Vino Italiano. The regional wines of Italy. New York: Clarkson Potter.
  3. Beckwith N., Lehmann D.R. (1975). The dynamics of brand equity: halo effects in business-to-business contexts. Journal of Business Research, 59(4): 615-621. DOI: 10.2307/3151224.
  4. Belfrage N. (2009). The Finest Wines of Tuscany and Central Italy. London: Aurum Press.
  5. Benjamin B.A., Podolny J.M. (1999). Status, quality, and social order in the California wine industry. Administrative Science Quarterly, 44(3): 563-589. DOI: 10.2307/2666962.
  6. Calò A., Costacurta A. (2004). Dei Vitigni Italici. Treviso: Matteo Editore.
  7. Cancellieri G., Cattani G., Ferriani S. (2022). Tradition as a resource: robust and radical interpretations of operatic tradition in the Italian opera industry, 1989-2011. Strategic Management Journal, 43(13): 2703-2741. DOI: 10.1002/smj.3402.
  8. Cattani G., Dunbar R.L., Shapira Z. (2017). How commitment to craftsmanship leads to unique value: Steinway & Sons’ differentiation strategy. Strategy Science, 2(1): 13-38. DOI: 10.1287/stsc.2016.0017.
  9. Cattani G., Ferriani S., Lanza A. (2017). Deconstructing the outsider puzzle: The legitimation journey of novelty. Organization Science, 28(6): 965-992. DOI: 10.1287/orsc.2017.1160.
  10. Dacin M.T., Dacin P.A. (2008). Traditions as institutionalized practice: implications for deinstitutionalization. In Greenwood R., Oliver C., Suddaby R., Sahlin-Andersson K. The Sage Handbook of Organizational Institutionalism. Thousand Oaks (CA): Sage Publications: 327-352.
  11. Dacin M.T., Dacin P.A., Kent D. (2019). Tradition in organizations: a custodianship framework. Academy of Management Annals, 13(1): 342-373. DOI: 10.5465/annals.2017.0033.
  12. Damodaran A. (2012). Investment Valuation: tools and techniques for determining the value of any asset (3rd ed.). New York: Wiley.
  13. Ertug G., Yogev T., Lee Y.G., Hedström P. (2016). The art of representation: How audience-specific reputations affect success in the contemporary art field. Academy of Management Journal, 59(1): 113-134. DOI: 10.5465/amj.2014.0546.
  14. Falchetti D., Cattani G., Ferriani S. (2022). Start with “why”, but only if you have to: The strategic framing of novel ideas across different audiences. Strategic Management Journal, 43(1): 130-159. DOI: 10.1002/smj.3242.
  15. Fregoni M. (2005). Viticoltura di Qualità. Affi (Vr): Phytoline.
  16. Gaglio C.M. (2004). The role of mental simulations and counterfactual thinking in the opportunity identification process. Entrepreneurship Theory and Practice, 28(6): 533-552. DOI: 10.1097/00132579-200408000-00010.
  17. Hargadon A., Douglas Y. (2001). When innovations meet institutions: Edison and the design of the electric light. Administrative Science Quarterly, 46(3): 476-501. DOI: 10.2307/3094872.
  18. Hsu G. (2006). Jacks of all trades and masters of none: Audiences’ reactions to spanning genres in feature film production. Administrative Science Quarterly, 51(3): 420-450. DOI: 10.2189/asqu.51.3.420.
  19. Johnson H. (1989). The Story of Wine. London: Mitchell Beazley.
  20. Keller K.L., Lehmann D.R. (2006). Brands and Branding: research findings and future priorities. Marketing Science, 25(6): 740-759. DOI: 10.1287/mksc.1050.0153.
  21. Lanza A. (2011). Innovazione, Imprenditorialità e Dinamiche Istituzionali. Milano: Egea.
  22. Lanza A., Simone G. (2025). Rogue wines: A non-starred wines story. The troubled adoption of the novel IGT category in the Italian wine industry. Advances in Strategic Management, 44. -- https://hdl.handle.net/20.500.11770/380919.
  23. Lok J., DeRond M. (2013). On the plasticity of institutions: Containing and restoring practice breakdowns at the Cambridge University Boat Club. Academy of Management Journal, 56(1): 185-207. DOI: 10.5465/amj.2010.0688.
  24. March J.G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1): 71-87. DOI: 10.1287/orsc.2.1.71.
  25. Negro G., Hannan M.T., Rao H. (2011). Category reinterpretation and defection: Modernism and tradition in Italian winemaking. Organization Science, 22(6): 1449-1463. DOI: 10.1287/orsc.1100.0610.
  26. Roberts P.W., Reagans R. (2007). Critical exposure and price-quality relationships for New World wines in the U.S. market. Journal of Wine Economics, 2(1): 84-97. DOI: 10.1017/S1931436100000311.
  27. Robinson J. (1982). The Great Wine Book. London: Sidgwick and Jackson.
  28. Sasaki I., Ravasi D., Micelotta E. (2019). Managing cultural heritage: Heritage traditions and innovation in family firms. Academy of Management Journal, 62(6): 2039-2066. DOI: 10.5465/amj.2018.0046.
  29. Shils E. (1981). Tradition. Chicago: University of Chicago Press.
  30. Skrentny J. (1996). The Ironies of Affirmative Action: Politics, Culture, and Justice in America. Chicago: University of Chicago Press.
  31. Soares J.A. (1997). A reformulation of the concept of tradition. International Journal of Sociology and Social Policy, 7(6): 6-21. DOI: 10.1108/eb013116.
  32. Swaminathan A. (2001). Resource partitioning and the evolution of specialist organizations: the role of location and identity in the U.S. wine industry. Academy of Management Journal, 44(6): 1169-1185. DOI: 10.2307/3069397.
  33. Wooldridge J.M. (2002). Econometric Analysis of Cross Section and Panel Data. MIT Press.
  34. Zuckerman E.W., Kim T.Y., Ukanwa K., Von Rittmann J. (2003). Robust identities or nonentities? Typecasting in the feature-film labor market. American Journal of Sociology, 108(5): 1018-1074. DOI: 10.1086/377518.

Metriche

Caricamento metriche ...