The internationalization process of german and portuguese small-and medium sized wineries and their determinants of success

Abstract

This paper aims to understand the different internationalization approaches of small- and medium-sized Portuguese Vinho Verde - and German Riesling wineries. Especially the underlying strategies, the role of networking, and additional factors that influence the success of internationalization are explored. Since the wine industry is dominated by SMEs, this industry was chosen. The research design is a multiple case study research with semi-structured interviews. In total, eight representatives from the regions are interviewed. All surveyed, unsurprisingly, use export as their market entry mode since they are selling products that are non-replicable. No specific pattern tied to the origin can be found when choosing an internationalization strategy. Either the wineries follow a localization- or internationalization strategy, suggesting that there are different determinants influencing the choice of strategy than the origin and grape variety or that it is decided unsystematically. Concerning the importance of network and its influence on success, the surveyed agree that networking is one of the most crucial success factors for internationalization. When differentiating between formal and informal networks, the results are diverse: Portuguese experts agree that formal networks are more critical, supporting existing literature, where as Germans favor informal networks. No valid finding is found assessing additional success factors for internationalization. The motives, why wineries enter foreign markets differ across the two countries, indicating that certain cultural backgrounds or other factors influence the winery's perception. Thus, the research must be expanded into a more extensive survey to gain more significant results.

Date of Award	28 Jan 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)