Sustainable Business Model and the Firm Age Variable Impact: Evidence from wine industry

Journal title MANAGEMENT CONTROL
Author/s Simona Alfiero, Laura Broccardo, Massimo Cane
Publishing Year 2024 Issue 2023/3
Language English Pages 27 P. 165-191 File size 326 KB
DOI 10.3280/MACO2023-003008
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

Sustainability is attracting increasing attention, especially in small and medium-sized companies and the agribusiness industry, because of the need to address ris-ing social and environmental issues. Consequently, the present study explores a sample of small and medium-sized companies operating in the wine sector, with particular attention to the key variables of their sustainable business model and its process design. Age is a variable that is rarely studied in the academic literature, but it is notable. Herein lies the originality of this research, which resides in the lens used to examine the business models of organisations. This study shows the rele-vance of this underexplored variable and its impact on sustainable business mod-els, shedding light on the sustainability implementation of young and old firms.

Keywords: Business model, Business model innovation, Sustainable business model, Wine sector, Firm age.

  1. Alfiero S., Broccardo L., Cane M., Esposito A. (2018), High Performance Through Innovation Process Management in SMEs. Evidence from the Italian wine sector, Management Control, 3, pp. 87-110. DOI: 10.3280/MACO2018-003005
  2. Ahmad S., Siddiqui K.A., Alsamh H.M. (2020), Family SMEs’ survival: the role of owner family and corporate social responsibility, Journal of Small Business and Enterprise Development, 27(2), pp. 281-297. DOI: 10.1108/JSBED-12-2019-0406
  3. Amit R., Zott C. (2001), Value creation in e‐business, Strategic management journal, 22(6‐7), pp. 493-520.
  4. Amit R., Zott C. (2012), Creating value through business model innovation, MIT Sloan management review.
  5. Antolín-López R., Céspedes-Lorente J., García-de-Frutos N., Martínez-del-Río J., Pérez-Valls M. (2015), Fostering product innovation: Differences between new ventures and established firms, Technovation, 41, pp. 25-37.
  6. Audretsch D.B., Coad A., Segarra A. (2014), Firm growth and innovation, Small business economics, 43, pp. 743-749.
  7. Baden-Fuller C., Haefliger S. (2013), Business models and technological innovation, Long Range Planning, 46(6), pp. 419-426.
  8. Baden-Fuller C., Mangematin V. (2013), Business models: A challenging agenda, Strategic Organization, 11(4), pp. 418-427. DOI: 10.1177/1476127013510112
  9. Badulescu A., Badulescu D., Saveanu T., Hatos R. (2018), The relationship between firm size and age, and its social responsibility actions - Focus on a developing country (Romania), Sustainability, 10(3), p. 805.
  10. Balasubramanian N., Lee J. (2008), Firm age and innovation, Industrial and corporate change, 17(5), pp. 1019-1047.
  11. Baldassarre B., Calabretta G., Bocken N.M.P., Jaskiewicz T. (2017), Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design, Journal of cleaner production, 147, pp. 175-186.
  12. Berends H., Smits A., Reymen I., Podoynitsyna K. (2016), Learning while (re) configuring: Business model innovation processes in established firms, Strategic Organization, 14(3), pp. 181-219. DOI: 10.1177/1476127016632758
  13. Bigliardi B., Galati F. (2013), Innovation trends in the food industry: The case of functional foods, Trends in Food Science & Technology, 31(2), pp. 118-129.
  14. Bocken N., Short S., Rana P., Evans S. (2013), A value mapping tool for sustainable business modelling, Corpoprate Governance, 13(5), pp. 482-497. DOI: 10.1108/CG-06-2013-0078
  15. Boons F., Lüdeke-Freund F. (2013), Business models for sustainable innovation: state-of-the-art and steps towards a research agenda, Journal of Cleaner production, 45, pp. 9-19.
  16. Brettel M., Strese S., Flatten T.C. (2012), Improving the performance of business models with relationship marketing efforts – An entrepreneurial perspective, European Management Journal, 30(2), pp. 85-98.
  17. Broccardo L. (2018), Progettazione del modello di business e sostenibilità. Analisi delle piccole e medie imprese operanti nel settore vitivinicolo, Torino, Giappichelli.
  18. Broccardo L., Zicari A. (2020), Sustainability as a driver for value creation: A business model analysis of small and medium entreprises in the Italian wine sector, Journal of Cleaner Production, 259, 120852.
  19. Capasso A., Gallucci C., Rossi M. (2015), Standing the test of time. Does firm performance improve with age? An analysis of the wine industry, Business History, 57(7), pp. 1037-1053. DOI: 10.1080/00076791.2014.993614
  20. Chesbrough H. (2010), Business model innovation: opportunities and barriers, Long Range Planning, 43(2-3), pp. 354-363.
  21. Christensen C.M. (2013), The innovator’s dilemma: when new technologies cause great firms to fail, Harvard Business Review Press.
  22. Christensen C.M., Bartman T., Bever D.V. (2016), The hard truth about business model innovation, MIT Sloan Management Review, 58 (1), pp. 30-40.
  23. Christensen C.M., Bower J.L. (1996), Customer power, strategic investment, and the failure of leading firms, Strategic management journal, 17(3), pp. 197-218.
  24. Christensen C.M., Overdorf M. (2000), Meeting the challenge of disruptive change, Harvard business review, 78(2), pp. 66-77. DOI: 10.1016/S0304-3770(99)00019-4
  25. Coad A., Holm J.R., Krafft J., Quatraro F. (2018), Firm age and performance, Journal of Evolutionary Economics, 28, pp. 1-11.
  26. Coad A., Segarra A., Teruel M. (2010), Like Milk or Wine: Does Firm Performance Improve With Age?, -- Available at: https://www.db-thueringen.de/servlets/MCRFileNodeServlet/dbt_derivate_00023532/2010-06.pdf (accessed March 2023).
  27. Coad A., Segarra A., Teruel M. (2016), Innovation and firm growth: does firm age play a role?, Research policy, 45(2), pp. 387-400.
  28. Contò F., Lopez A. (2008), Organizzazione territoriale e sviluppo locale nell’area dell’Alto Tavoliere: Capitale umano e territori intelligenti nell’esperienza del Distretto Agroalimentare del Tavoliere, Milano, FrancoAngeli.
  29. Criscuolo P., Nicolaou N., Salter A. (2012), The elixir (or burden) of youth? Exploring differences in innovation between start-ups and established firms, Research Policy, 41(2), pp. 319-333.
  30. Demil B., Lecoq X. (2010), Business model: Toward a dynamic consistency view of strategy. Long Range Planning, 43(2-3), pp. 227-246.
  31. Desyllas P., Sako M. (2013), Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance, Research Policy, 42(1), pp. 101-116.
  32. Dudin M.M. (2015), Business model canvas as a basis for the competitive advantage of enterprise structures in the industrial agriculture, Biosciences Biotechnology Research Asia, 12(1), pp. 887-894.
  33. El Bilali H. (2019), Research on agro-food sustainability transitions: A systematic review of research themes and an analysis of research gaps, Journal of Cleaner Production, 221, pp. 353-364.
  34. Fadda N., Corsi K., Marinò L., Pischedda G. (2021), Sustainable-oriented management come fattore di resilienza organizzativa: un caso di studio, Management Control, 2, pp. pp. 39-60. DOI: 10.3280/MACO2021-002003
  35. Ferrer J.R., García-Cortijo M.C., Pinilla V., Castillo-Valero J.S. (2022), The business model and sustainability in the Spanish wine sector, Journal of Cleaner Production, 330, 129810.
  36. Ferrer-Lorenzo J.R., Maza-Rubio M.T., Abella-Garcés S. (2019), Business model and performance in the Spanish wine industry, Journal of wine research, 30(1), pp. 31-47. DOI: 10.1080/09571264.2019.1573358
  37. Foss N.J., Saebi T. (2017), Fifteen years of research on business model innovation: How far have we come, and where should we go?, Journal of management, 43(1), pp. 200-227. DOI: 10.1177/0149206316675927
  38. Frick J., Ali M.M. (2013), Business model canvas as tool for SME, In Advances in Production Management Systems. Sustainable Production and Service Supply Chains: IFIP WG 5.7 International Conference, APMS 2013, State College, PA, USA, September 9-12, 2013, Proceedings, Part II, pp. 142-149, Springer Berlin Heidelberg. DOI: 10.1007/978-3-642-41263-9_18.ISBN978-3-642-41262-2
  39. Garetti M., Taisch M. (2012), Sustainable manufacturing: trends and research challenges, Production planning & control, 23(2-3), pp. 83-104. DOI: 10.1080/09537287.2011.591619
  40. Geissdoerfer M., Vladimirova D., Evans S. (2018), Sustainable business model innovation: A review, Journal of cleaner production, 198, pp. 401-416.
  41. Groenland E., Dana L.P. (2020), Qualitative methodologies and data collection methods: Toward increased rigour in management research, DOI: 10.1142/9789811206542_0001
  42. Gronum S., Steen J., Verreynne M.L. (2016), Business model design and innovation: Unlocking the performance benefits of innovation, Australian Journal of Management, 41(3), pp. 585-605. DOI: 10.1177/0312896215587315
  43. Guo H., Tang J., Su Z., Katz J.A. (2017), Opportunity recognition and SME performance: The mediating effect of business model innovation, R&D Management, 47(3), pp. 431-442.
  44. Hanks S.H., Watson C.J., Jansen E., Chandler G.N. (1994), Tightening the life-cycle construct: A taxonomic study of growth stage configurations in high-technology organizations, Entrepreneurship theory and Practice, 18(2), pp. 5-29. DOI: 10.1177/104225879401800201
  45. Jeppesen S., Kothuis B., Tran A.N. (2012), Corporate social responsibility and competitiveness for SMEs in developing countries: South Africa and Vietnam. Agence française de développement.
  46. Jingga F., Limantara N. (2015), The development of Indonesia small medium enterprise (SME) rating and review portal, International Journal of Multimedia and Ubiquitous Engineering, 10(3), pp. 211-218.
  47. Johnson M.W., Suskewicz J. (2009), How to jump-start the clean economy, Harvard business review, 87(11).
  48. Latifi M.A., Nikou S., Bouwman H. (2021), Business model innovation and firm performance: Exploring causal mechanisms in SMEs, Technovation, 107, 102274.
  49. Laudien S.M., Daxböck B. (2016), The influence of the industrial internet of things on business model design: A qualitative-empirical analysis, International Journal of Innovation Management, 20(08), 1640014. DOI: 10.1142/S1363919616400144
  50. Loon M., Chik R. (2019), Efficiency-centered, innovation-enabling business models of high tech SMEs: Evidence from Hong Kong, Asia Pacific Journal of Management, 36(1), pp. 87-111.
  51. Lüdeke-Freund F. (2010), Towards a conceptual framework of business models for sustainability, In R. Wever, J. Quist, A. Tukker, J. Woudstra, F. Boons, N. Beute, eds, Knowledge collaboration & learning for sustainable innovation, Delft, pp. 25-29.
  52. Massa L., Tucci C.L. (2013), Business model innovation, The Oxford handbook of innovation management, 20(18), pp. 420-441.
  53. Menrad K. (2004), Innovations in the food industry in Germany, Research policy, 33(6-7), pp. 845-878.
  54. Miller D. (1986), Configurations of strategy and structure: Towards a synthesis, Strategic management journal, 7(3), pp. 233-249.
  55. Ojasalo J., Ojasalo K. (2016), Service logic business model canvas for lean development of SMEs and start-ups, In Handbook of research on entrepreneurship in the contemporary knowledge-based global economy, pp. 217-243, IGI Global.
  56. Osterwalder A., Pigneur Y. (2010), Business model generation: a handbook for visionaries, game changers, and challengers (Vol. 1), John Wiley & Sons.
  57. Ouvrard S., Jasimuddin S.M., Spiga A. (2020), Does sustainability push to reshape business models? Evidence from the European wine industry, Sustainability, 12(6), 2561.
  58. Pedersen E.R.G., Gwozdz W., Hvass K.K. (2018), Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry, Journal of business ethics, 149, pp. 267-284.
  59. Pellegrino G. (2018), Barriers to innovation in young and mature firms, Journal of Evolutionary Economics, 28, pp. 181-206.
  60. Petruzzelli A.M., Ardito L., Savino T. (2018), Maturity of knowledge inputs and innovation value: The moderating effect of firm age and size, Journal of Business Research, 86, pp. 190-201.
  61. Pischedda G., Corsi K., Marinò L., Fadda N. (2021), Sustainable business model and organisational resilience: a case study of an Italian winery enterprise, Beyond the crisis: what is the future for small businesses?, 9.
  62. Pokorná J., Pilař L., Balcarová T., Sergeeva I. (2015), Value proposition canvas: identification of pains, gains and customer jobs at farmers’ markets, AGRIS on- line Papers in Economics and Informatics, pp. 123-130.
  63. Prendeville S.M., O’Connor F., Bocken N.M., Bakker C. (2017), Uncovering ecodesign dilemmas: A path to business model innovation, Journal of cleaner production, 143, pp. 1327-1339.
  64. Preuss L., Walker H. (2011), Psychological barriers in the road to sustainable development: evidence from public sector procurement, Public Administration, 89(2), pp. 493-521.
  65. Rivera W.F., Hoyos Concha J.L. (2016), Business model for initiatives in science, technology and innovation. An application for the fish agroindustry of Cauca, Vitae, 23, s410.
  66. Rotondo F., Corsi K., Giovanelli L. (2019), The social side of sustainable business models: An explorative analysis of the low-cost airline industry, Journal of Cleaner Production, 225, pp. 806-819.
  67. Rowley J. (2014), Designing and using research questionnaires, Management research review, 37(3), pp. 308-330. DOI: 10.1108/MRR-02-2013-0027
  68. Saemundsson R.J., Candi M. (2017), Absorptive capacity and the identification of opportunities in new technology-based firms, Technovation, 64, pp. 43-49.
  69. Schaltegger S., Hansen E.G., Lüdeke-Freund F. (2016), Business models for sustainability: Origins, present research, and future avenues, Organization & Environment, 29(1), pp. 3-10. DOI: 10.1177/1086026615599806
  70. Schneider C., Veugelers R. (2010), On young highly innovative companies: why they matter and how (not) to policy support them, Industrial and Corporate change, 19(4), pp. 969-1007.
  71. Stubbs W., Cocklin C. (2008), Conceptualizing a “sustainability business model”, Organization & environment, 21(2), pp. 103-127. DOI: 10.1177/1086026608318042
  72. Tongur S., Engwall M. (2014), The business model dilemma of technology shifts, Technovation, 34(9), pp. 525-535.
  73. Türko E.S. (2016), Business plan vs business model canvas in entrepreneurship trainings, a comparison of students’ perceptions, Asian Social Science, 12(10), pp. 55-62.
  74. Wei Z., Yang D., Sun B., Gu M. (2014), The fit between technological innovation and business model design for firm growth: evidence from China, R&D Management, 44(3), pp. 288-305.
  75. Wells P. (2018), Degrowth and techno-business model innovation: The case of Riversimple, Journal of Cleaner Production, 197, pp. 1704-1710.
  76. Zott C., Amit R. (2007), Business model design and the performance of entrepreneurial firms, Organization science, 18(2), pp. 181-199.
  77. Zott C., Amit R. (2010), Business model design: An activity system perspective, Long Range Planning, 43(2-3), pp. 216-226.
  78. Zott C., Amit R., Massa L. (2011), The business model: recent developments and future research, Journal of management, 37(4), pp. 1019-1042. DOI: 10.1177/0149206311406265

Simona Alfiero, Laura Broccardo, Massimo Cane, Sustainable Business Model and the Firm Age Variable Impact: Evidence from wine industry in "MANAGEMENT CONTROL" 3/2023, pp 165-191, DOI: 10.3280/MACO2023-003008