Internationalization of the Yarra Valley Wine Industry Cluster
Sedoglavich, M. (2009). Internationalization of the Yarra Valley Wine Industry Cluster (Thesis, Master of Management Studies (MMS)). The University of Waikato, Hamilton, New Zealand. Retrieved from http://hdl.handle.net/10289/2259
Permanent Research Commons link: http://hdl.handle.net/10289/2259
This research investigates the ways in which firms in the cluster approach the processof internationalization through exploring the influence of business clustering and howit benefits firms in entering foreign markets. The purpose was to understand thisprocess to enable firms to develop successful international strategies to expand inforeign markets. The focus of the study is on the Yarra Valley Wine Industry Cluster,the oldest wine growing region in Victoria, Australia. This research examined ofAustralian wineries to join together in order to achieve greater competitiveness incollaboration when entering foreign markets due to ever increasing globalcompetition.This paper was an exploratory study that used qualitative information gathered fromthe case study firms to provide practical framework for the execution of the researchusing a multiple-case study design.The findings show the following: first, some of the wineries gain their perceptions ofthe foreign markets from their relationships with, as well as, by the input andsuggestions of the distributors, agents, and partners in a particular market, whileothers seem to distance themselves from their international environments and onlyfocus on serving domestic/local markets exclusively. Second, personal networks playan important role when it comes to the internationalization process of the wineriesbecause they provide access to market knowledge. Third, cooperation among clusterfirms plays a very limited role in assisting wineries in foreign market expansion; ithas only been of benefit when it came to dealing with local issues. The cluster hasplayed only a minor role, if any, when it comes to the internationalization of thecluster firms. Clustering has been identified as a place where wineries exchangeknowledge, and techniques, in regards to wine production, or come together in a jointeffort to sort out local issues. However, the cluster does not provide assistance toindividual wineries entering international marketplaces.In conclusion there was a distinctive lack of active support and organization from thecluster with regard to the international expansion due to the lack of leadership andjoint direction among cluster members. This is where local government could takemore proactive role to facilitate better usage of geographical clusters.The findings could improve the company decision-making process. Understandingthe advantages and disadvantages of clustering as a means for the future internationalexpansion can be useful in helping to develop international strategies for firms. Thiswould be of great significance to business practitioners because this may have acrucial impact on the competitive advantage of firms in foreign markets. In additionto having significant implications for practice, the investigation has implications forinternational business research because it provides a better understanding of the roleof a cluster in the internationalization.
The University of Waikato
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