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

Somogyi, Simon and Gyau, Amos and Li, Elton and Bruwer, Johan (2010) Enhancing long-term grapegrower/winery relationships in the Australian wine industry. International Journal of Wine Business Research, 22 (1). pp. 27-41. ISSN 1751-1062


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.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version due to publisher copyright policy.
Faculty / Department / School: Historic - Faculty of Business - School of Management and Marketing
Date Deposited: 19 Sep 2010 09:47
Last Modified: 17 Oct 2014 03:21
Uncontrolled Keywords: wines, communication, trust, Australia, viticulture, channel relationships
Fields of Research : 15 Commerce, Management, Tourism and Services > 1505 Marketing > 150503 Marketing Management (incl. Strategy and Customer Relations)
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1108/17511061011035189
URI: http://eprints.usq.edu.au/id/eprint/7480

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