Enhancing long-term grapegrower/winery relationships in the Australian wine industry

Abstract

Purpose – There are many factors which may influence the ability of wineries to build and maintain long-term relationships (LTR) with their suppliers of grapes. The aim of this paper is to identify the most important factors which enhance LTR between Australian wineries and grape growers. Design/methodology/approach – A qualitative in-depth interview technique was employed with 13 Australian grape growers. Findings – The relational dimensions of communication, goal compatibility and use of power were found to influence the relationship quality dimensions of trust and satisfaction, which are also linked to the level of commitment and hence long-term relationship. Practical implications – The Australian wine industry is currently suffering economic instability which has resulted in the demise of some relationships between grape growers and winemakers. However, economic misfortunes will no doubt change and inefficiencies will result if LTR are not maintained. These inefficiencies could prove detrimental as the Australian wine industry strives to produce regionally branded and higher quality wine products which are both grape grower derived element. Furthermore, issues related to communication frequency and reduction in trust have implications for communication strategies which may result in the reduction of winery grower liaison staff. Originality/value – This paper offers a grape/grower-winery perspective on buyer-seller relationships. It moderates the theory on communication and its effect on trust and commitment. Furthermore it posits the issue of buyer size on relational dimension and outcomes, which has had little attention in the literature.