Agro-Environmental Practices and Business Performance in the Wine Sector

Abstract

Wine production is directly related to the environmentally responsible production. In recent years, due to demands for an environmentally responsible wine production in the Republic of Serbia, wine producers have become aware of the environmental responsibilities and are taking measures to prevent environmental problems. The objective of this research was to investigate attitudes of winery owners/managers on business performance of the wineries concerning the environmental behavior and its disclosure. The research has been conducted in the period from July to the end of October 2021 on a sample of 330 small wineries in the Republic of Serbia. The data were processed in the Smart PLS software v.3.2.7. The findings show a positive connection between of both service and financial performance with an ethical environmental behavior and environmental disclosure. However, no positive connection between innovative performance and ethical environmental behavior or ethical environmental disclosure has been determined. The positive attitudes of managers on the environment influence the business performance of wineries and indirectly on environmental behavior and disclosure. The current study should contribute to the relevant literature, as it investigates not only firm behavior in the wine sector, but also the impact of firm performance on the environment.