Rhode Island and Connecticut wineries business strategy, performance, and management capabilities: a survey of managerial practices

Abstract

ABSTRACT New wineries in less traditional wine regions have broadened the concept of the wine industry by linking it with tourism; perhaps with more strength than in other more traditional areas, where this change in the business model has also occurred. To understand what the drivers of a better performance to this new typology of wineries are, this article has surveyed the wineries of the states of Connecticut and Rhode Island, in the northeast of the U.S., a new wine region. Through a questionnaire, the strategies these wineries follow and their relevant management capabilities in relationship with their performance have been analyzed. The conclusions show how the management capabilities the wineries own are as important as the strategy of differentiation they follow in their pursue and obtention of a competitive advantage; and that it is a service and tourism-oriented strategy that eventually facilitates this advantage. The managerial skills of creating an efficient and coordinated organizational structure together with their conception of this service-oriented business, where the tourism aspect plays a fundamental role, seems evident when defining the resources and capabilities that generate their sustainable performance.