Title: Towards a Gradual Growing Strategy of small business: an analysis through the performance in the wine industry

Authors: Carmen Gallucci; Bice Della Piana; Gabriella Nave

Addresses: Management & Innovation System Department, University of Salerno, Via Giovanni Paolo II 132, 84084 Fisciano (SA), Italy ' Management & Innovation System Department, University of Salerno, Via Giovanni Paolo II 132, 84084 Fisciano (SA), Italy ' Management & Innovation System Department, University of Salerno, Via Giovanni Paolo II 132, 84084 Fisciano (SA), Italy

Abstract: The Italian wine industry is characterised by the strong presence of small firms in which a thorough strategic planning aimed to growth and to maintain or improve competitive advantage is marginal. This results in a lack of financial, managerial and cognitive resources. Based on these considerations, we believe that it is critical for small wine businesses to reconsider their growth strategies. We propose a possible strategic path, named Gradual Growing Strategy. Selecting a sample of 100 small wine businesses, we analyse the inter-organisational ties, distinguishing between equity and personal ties and identifying three groups of firms. With the aim to identify a strategic path consistent with the specific growth needs of small wine businesses, we conduct a descriptive and a regression analysis on performances of these groups of firms.

Keywords: wine industry; small firms; growth strategies; inter-organisational ties; economic performance; financial performances; wine firms; firm performance; gradual growing strategy; small business; Italy; strategic planning; equity; personal ties.

DOI: 10.1504/IJMP.2015.072774

International Journal of Management Practice, 2015 Vol.8 No.3, pp.187 - 198

Received: 10 Mar 2015
Accepted: 29 Sep 2015
Published online: 28 Oct 2015 *

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