Exploring the determinant factors of dynamic entrepreneurship in the wine industry in Chile

Abstract

While much has been studied regarding the wine industry in countries such as Spain, France and Italy, less has been studied in developing countries. Few studies in Chile observe that companies are primarily of family background, internationally-oriented, characterized by competing with low-prices. Given the increased global demand for wine products, questions are being raised in Chile on how to adapt the current development model, with wine companies that participate heavily in international trade, showing dynamic-growth, positioning Chile as the leading producer of sustainable and premium category wines in the new world countries. This paper reports six cases of family-owned wine companies, three of which are characterized by dynamic-growth versus three other companies presenting more gradual growth. A number of variables are analyzed to understand the distinctive features of dynamic entrepreneurships in the wine industry in Chile. These variables include prior experience and knowledge of its founders regarding leading large companies, the use of strategic-planning systems and the use of new technology in most of production. The results of this investigation could prove insightful for those wine entrepreneurs looking to enhance their growth based on greater differentiation and innovation, and not only remaining competitive in product pricing.