I found an interesting research dealing with the role of cluster in the internationalization process (the 4th point we were discussing during last class) and I would like to summarize in a few lines the main findings of the author (downloadable at
http://waikato.researchgateway.ac.nz/bitstream/10289/2259/1/thesis.pdf) .
The study (published this year) deals with the Yarra Valley (Australia) wine industry which includes more than 80 wineries of “different size and sophistication”. As the author said, they belong to a cluster “by default”, as a consequence of the “geographical location and physical proximity of the wineries to each other ”.
The cluster has mostly been utilized at the local level “as a discussion forum with regards to local winemaking techniques, some local promotion or to lobby local government”, and it has found to be less effective in the process of international expansion, mainly due to “the lack of leadership and joint direction among cluster members”.
In fact, “each winery is utilizing its own individual resources and networks in order to succeed internationally”. Therefore, in order to expand their operations, wineries exploited their existing relationships and “transferred some of the strategic decision making to the network partner that is more familiar with that particular marketplace”.
But since “network relationships have a strong impact on deciding which market a firm should enter”, they could also end in “restricting a firms’ growth potential”. Another factor affecting the choice of the market to enter is the “psychic distant” to the customer (rather than geographical), reflected in Australian wineries “preference of markets where culture and language are similar to their own” (eg. English speaking markets or former British colonies).
Even if the internationalization is seen as an opportunity to grow, “the majority of wineries are still very much focused on the local market; this most likely is due to a lack of information relating to foreign market opportunities, which are normally expected to be provided by a cluster”.
In addition, “the members of the cluster do not share any of their strategic knowledge (eg. using the network of some of the members) that could enable the group as a whole to be more competitive”.
Therefore, personal networks represent the feasible alternative Australian wineries have found to establish a presence in the international market by utilizing local agents or distributors and to solve the problems faced by Australian wineries in the internationalization, which basically are:
- Lack of information about foreign market opportunities (which leads to biased decisions)
- Lack of coordination (small fishes entering the ocean)
- Lack of support by the cluster in the international context
As far as I know about the Italian wine industry (actually my knowledge is limited to the Valpolicella area),it seems to me that there are many similarities between Italian and Australian wineries concerning the structure of the industry they belong to as well as the problem they deal with while entering the international market. I think also that the barriers Australian wineries encounter in the internationalization can fit well also the Italian wine context.
So, my question is: Is the New World (recalling Simpson’s title) getting older???
