Implications of strong resource capabilities in a family wine business

Abstract

Purpose:Family business longevity is one of the bellwether subjects of family businesses. Historically longevity has been seen through the lens of succession planning and processes, and this article is guided by this foundation of literature. However we concentrate on one aspect of the succession, that is, the resource capabilities family firms in the wine industry possess and how they relate to continuity. Design/methodology/approach: Three case organizations were visited and 27 interviews conducted for this study. The sample of New Zealand family wine businesses included medium-sized family businesses with at least two generations in the business. The analysis was carried out in two phases: data management and coding utilizing NVivo 9, then further reduction and synthesizing of data through a matrix display. Findings: Through a synthesis of themes based on open-coded concepts we arrived at two primary themes – Affluence and Character – which underpin resource capabilities in family winegrowers. We found that these resource capabilities can be highly influential in determining the continuity or discontinuity of a family business. Practical implications: We propose a continuity matrix that summarizes the strength of haracter and affluence in relation to continuity.