Horizontal networks and collaborative marketing in the Tasmanian wine industry

Size: px

Start display at page:

Download "Horizontal networks and collaborative marketing in the Tasmanian wine industry"

Evelyn York
5 years ago
Views:

1 Horizontal networks and collaborative marketing in the Tasmanian wine industry Gemma Roach, BBus (Hons) Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy University of Tasmania December 2011

2 Declaration of originality This thesis contains no material which has been accepted for a degree or diploma by the University or any other institution, except by way of background information and duly acknowledged in the thesis, and to the best of the my knowledge and belief no material previously published or written by another person except where due acknowledgement is made in the text of the thesis, nor does the thesis contain any material that infringes copyright. Gemma Roach Date ii

3 Authority of access This thesis may be made available for loan. Copying and communication of any part of this thesis is prohibited for two years from the date this statement was signed. After that time limited copying and communication is permitted in accordance with the Copyright Act Gemma Roach Date iii

4 Abstract In the past thirty or so years, an increasing number of organisations have formed business-to-business relationships as an alternative to traditional market exchange. Much of the literature in this area focuses on the nature of dyadic relationships or vertical networks between heterogeneous businesses in a supply chain. Far less research has examined how competitors interact at a network level, and, more specifically, why these organisations would choose to engage in collaborative marketing. This thesis examines the nature of horizontal networks and collaborative marketing in the context of the Tasmanian wine industry. It uses network theory to explore the phenomena of interproducer relationships within a specific wine region of Australia. The research is guided by the following questions: why do Tasmanian wine producers join horizontal networks, what types of collaborative marketing do Tasmanian wine producers engage in within horizontal networks, and what factors affect collaborative marketing between Tasmanian wine producers in horizontal networks. Qualitative data were gathered via in-depth interviews with firstly, industry informants, and secondly, individual wine producing businesses. These data were supplemented with information drawn from websites, industry publications, and news sources. A key aim of the study was to explore how horizontal networks are perceived by Tasmanian wine producers, and to what extent these businesses engage in collaborative marketing. Analysis of the data revealed that there are three horizontal networks within the Tasmanian wine industry, which are all of a formal nature. While these networks share a similar purpose, there was divergence between how successful each network s attempts at collaborative marketing had been. Furthermore, certain horizontal networks in the industry boasted higher levels of member trust, commitment, mutual benefit, and camaraderie. These factors have led to differences in the way each network is perceived, and the benefits of collaboration each offers. Parallels between Tasmania s only statewide industry association and the state s largest sub-regional network, have resulted in some conflict and rivalry which, going forward, may restrict the implementation of collaborative marketing at a state-wide level. iv

5 Acknowledgements The last three and a half years have taken me on a very enjoyable and thought-provoking ride. Thankfully, the outcome of this journey has been the compilation of this thesis, which has only been possible through the support, assistance, and resources I have received. Firstly I would like to acknowledge my main supervisor, Dr John Byrom, who was so forthcoming with his time, assistance, and attention to detail. This relationship was duly complemented with the support and advice provided by my co-supervisor, Assoc/Prof Martin Grimmer, to whom I also express my gratitude. Together, John and Martin granted me a solid foundation to conduct my research, and offered me clear direction to develop both personally and academically. I am also indebted to many of my colleagues within the Faculty of Business, who provided me with a friendly office atmosphere and lots of advice and encouragement. In particular I would like to thank Dr Kim Lehman, Dr Stuart Crispin and Dr Megan Woods. Through sharing their wisdom, experience, and friendship, I was able to relieve many of the challenges I encountered. Sincere thanks must also go out to the group of passionate Tasmanian wine producers and industry informants who participated in my study. These generous people kindly gave up their time to share with me their opinions, experiences, and in many cases, their wine. Finally, I would like to thank my family and friends who have supported me throughout this entire experience. Special thanks go to my fiancé, Daniel, whose love and patience have enabled me to reach my goal of one day completing my doctorate in marketing. v

6 List of tables Table 2.1 The transactional versus relational approach to exchange 23 Table 2.2 Different inter-organisational structures 43 Table 2.3 A continuum of inter-organisational relationships 47 Table 2.4 The characteristics of formal and informal networks 59 Table 7.1 Characteristics of the wine producers interviewed 149 Table 7.2 Horizontal networks in the Tasmanian wine industry 153 vi

7 List of figures Figure 1.1 Tasmania s wine sub-regions 16 Figure 2.1 A model of the interaction approach 28 Figure 2.2 The nature of inter-organisational relationships 48 Figure 4.1 An exploratory framework for the thesis 82 Figure 4.2 A visual representation of cooperative arrangements 83 Figure 10.1 Conceptual framework: horizontal networks and collaborative marketing in the Tasmanian wine industry 281 vii

8 Table of contents Declaration of originality Authority of access Abstract Acknowledgements List of tables List of figures ii iii iv v vi vii CHAPTER ONE Introduction to the thesis 1.1 Introduction Background to the research problem Research context Australia s wine industry Tasmania s wine industry Research questions and significance of the study Thesis structure Chapter summary 21 CHAPTER TWO Inter-organisational relationships and network theory 2.1 Introduction Industrial markets and paradigm shifts A new wave of thinking: the interaction approach The Activity-Resource-Actor (ARA) model A contemporary view of competition The social dimension of inter-organisational relationships Inter-organisational relationships and business networks Networks, alliances and clusters The nature of interaction within business networks Classifying different network forms Vertical and horizontal networks Formal and informal networks Chapter summary 60 viii

9 CHAPTER THREE Network relationships 3.1 Introduction Factors that enhance network relationships Social bonds and social activity Inter-organisational trust Commitment Mutual benefit and reciprocity Communication Leadership Chapter summary 74 CHAPTER FOUR Collaborative marketing and horizontal networks 4.1 Introduction SMEs and the benefits of networking Defining collaborative marketing Collaborative marketing and horizontal networks Why firms join business networks Why business networks sometimes fail Chapter summary 98 CHAPTER FIVE Wine marketing and wine networks 5.1 Introduction Wine marketing and the nature of the wine product Collaboration in the Australian wine industry Wine networks Relationships between wine producers Collaboration between the wine and tourism industries Collaborative marketing between wine producers Vertical wine networks Literature review summary 119 CHAPTER SIX Methodology 6.1 Introduction Research philosophy 121 ix

10 6.3 Research design Qualitative research Sampling strategy Data collection Stage one: interviews with industry informants Stage one continued: industry documentation and secondary data Stage two: in-depth interviews with wine producers 131 ` The interview schedule Data analysis Data reduction Data display Conclusion drawing and verification Reliability and validity of the research findings Reliability Validity Ethical considerations Limitations of the methodology Chapter summary 146 CHAPTER SEVEN Findings and discussion part one 7.1 Introduction Tasmanian wine producers involved in the study Horizontal networks in the Tasmanian wine industry Wine Industry Tasmania (WIT) The Tamar Valley Wine Route (TVWR) WineSouth Informal networks and past industry associations Horizontal networks and the nature of interaction Why Tasmanian wine producers join horizontal networks Commercial motivations Social motivations Strategic motivations The benefits of horizontal networking Chapter summary 189 x

11 CHAPTER EIGHT Findings and discussion part two 8.1 Introduction Collaborative marketing in the Tasmanian wine industry Promotion Annual wine route publications Wine industry events, festivals, and trade shows Advertising, sponsorship and public relations Word-of-mouth referrals between wine producers Product benchmarking Product bundling Regional branding Distribution Pricing Chapter summary 212 CHAPTER NINE Findings and discussion part three 9.1 Introduction Enhancing collaborative marketing in horizontal networks Critical mass and geographic proximity Producer diversity Formal governance and transparency Frequent and open communication Leadership and network champions Government involvement and support Producer contribution and commitment Trust and respect Social interaction and support Factors that inhibit collaborative marketing in horizontal networks Financial cost Inter-network conflict Intra-network divisions Time and human resources Chapter summary 269 xi

12 CHAPTER TEN Conclusion 10.1 Introduction Conclusions to the research questions Research question one Research question two Research question three Contributions to theory Implications for practice Research limitations Further research Final statement 291 REFERENCES 292 APPENDICES Appendix A Information sheets for wine producers 325 Appendix B Information sheet for industry informants 329 Appendix C Interview schedule for industry informants 331 Appendix D Industry related events attended 332 Appendix E Interview schedule for wine producers 333 Appendix F List of tree nodes from QSR NVivo 335 Appendix G Event photos and network materials 337 xii

INVESTIGATIONS INTO THE RELATIONSHIPS OF STRESS AND LEAF HEALTH OF THE GRAPEVINE (VITIS VINIFERA L.) ON GRAPE AND WINE QUALITIES

INVESTIGATIONS INTO THE RELATIONSHIPS OF STRESS AND LEAF HEALTH OF THE GRAPEVINE (VITIS VINIFERA L.) ON GRAPE AND WINE QUALITIES by Reuben Wells BAgrSc (Hons) Submitted in fulfilment of the requirements