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Working Papers
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Product Portfolio Change and Organizational Renewal – The D.O. Wine Industry in Castilla-León (Spain)

Working Paper No. 17

Published: 2008
Category:
Unkategorized

Product Portfolio Change and Organizational Renewal – The D.O. Wine Industry in Castilla-León (Spain)

María del Valle Santos, María Teresa García & Ana María Ortega
Full Text PDF
Abstract
The present study is framed within recent works addressing the process of product portfolio renewal as a mechanism for organizational renewal, in that firms may use it to meet the challenge of a changing environment. Based on this theory, we build an analysis model linking product portfolio renewal to changes in external factors and apply it to D.O. wine companies in Castilla y León. We found that both the environment as well as firms themselves had been highly dynamic during the period analyzed vis-à-vis their product portfolios. The importance of issues related to organizational adaptation and adjustment, such as those tackled in our research, lies in their link to organizational survival, making them a focal point of managerial concern. The findings to emerge from our work throw up certain implications which may prove useful to managers. In dynamic environments, such as those in which many firms find themselves immersed, it is likely that a change in the initial external circumstances may lead to a certain lack of organizational adjustment. In this situation, managers should consider the need to implement adjustment mechanisms. One such mechanism, product portfolio renewal, has proven to be a valid alternative to help them find their way in a changing environment.
Keywords: product portfolio renewal, dynamic capabilities, wine industry

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

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