Strategic positioning, differentiation and performance of Brazilian wineries

Abstract

Purpose The purpose of this study is to verify whether managers’ strategic orientation influences decision-making related to differentiation and whether these two factors impact on the performance of the firms in the Brazilian wine industry. Design/methodology/approach A survey was conducted with representatives from 123 wineries located in the following Brazilian states: 78.86 per cent in Rio Grande do Sul; 13.01 per cent in Santa Catarina; 2.44 per cent in Paraná; 2.44 per cent in São Paulo; 1.63 per cent in Bahia; and 1.63 per cent in Pernambuco. The data were analyzed using multivariate statistical techniques, resulting in a structural equations model of the constructs. Findings The research findings show that there is a positive association between prospector orientation and differentiation. Analyst positioning was negatively associated with differentiation of winery companies. It was also possible to show that differentiation has a positive relationship with performance. Originality/value While a previous study attempted to identify wineries’ strategic orientation using other theoretical constructs, this study makes a contribution to consolidating reflections on strategic orientation focused on differentiation and performance. The results contribute to expanding the scientific debate by filling a gap in existing theory and also provide information of use to decision-makers, demonstrating, which approaches improve differentiation, and hence, performance.