Sustainability and growth: Evidence from Spanish wine industry

Abstract

Aim of study: To analyze the compatibility of sustainability with the business growth of wineries in Spain. Area of study: The data used come from a survey conducted in the years 202 and 2021, which was addressed to the all wineries located in Spain. Material and methods: The economic growth of wineries is conditioned by different factors; in this work we have analyzed the orientation towards sustainability, business resources and capabilities (marketing, innovation, marketing, human resources, network resources, management resources and financial resources), profitability and exports. The empirical analysis was carried out by studying the responses received after a first mail sent to all independent wineries, with a subsequent telephone call. The number of responses, 411, represents 14% of the population. Using the regression model, estimated by OLS with Robust Errors proposed by Eiker-White, the factors determining the economic growth of the wineries were analyzed. The analysis done was exploratory. Main results: The results show that the factors that most favor the growth of Spanish wine companies are management capabilities, sustainability orientation and financial resources. Research highlights: Two relevant factors for growth are management capabilities and sustainability orientation. This reaffirms the compatibility of opting for sustainability and business growth in the case of Spanish wineries. And it allows to give arguments to the positive discourse between growth and sustainability of economic activities.