An Exploratory Study of the Factors Enhancing and Inhibiting Export Growth in the Chilean Wine Industry

Abstract

This exploratory study investigates the main drivers that enhance and inhibit the export performance of Chilean wineries. The findings of this study suggest that the main constraints within the Chilean wineries in developing exports is the lack of financial resources, limited quantities of stocks for market expansion, management's lack of knowledge and experience, and the high cost of traveling and participating in trade shows. The main drivers of wine export performance according to the respondents are high quality of the wines, well-established network of international distributors, and marketing skills. The major inhibitors of developing wine exports are exchange rate variability, problems in selecting a reliable international distributor, and limited government support to promote wine exports. This study also shows that export managers of Chilean wineries have high educational levels and have international experience. The findings have important implications for export development efforts of both governments and managers.

KEYWORDS:

• Chile
• export performance
• internationalization
• wine

Acknowledgments

The authors acknowledge the support from the Center of International Competitiveness funded by Conicyt, grant SOC 1105.

Notes

Note. Responses to the question “Exporting would allow a firm to …” (1 = totally disagree; 7 = totally agree). Scale adopted from Sullivan and Bauerschmidt (1991). Means > than 3.5 indicates greater importance. *Indicative of significant difference between nonexporters and exporters; however, due to small population assumptions underlying inferential statistics, that is, random samples, may not be satisfied. t values in parentheses: results significant at *p < .005 (see Oakes, 1986).

Note. Responses to the question “Our product's competitiveness in the marketplace is enhanced by …” (1 = totally disagree; 7 = totally agree). Scale adopted from Sullivan and Bauerschmidt (1991). Means > than 3.5 indicates greater importance. *Indicative of significant difference between nonexporters and exporters; however, due to small population assumptions underlying inferential statistics, that is, random samples, may not be satisfied. t values in parentheses: results significant at *p < .005 (see Oakes, 1986)

Note. Responses to the question “Our firm's export activity is or could be inhibited by …” (1 = totally disagree; 7 = totally agree). Scale adopted from Leonidou et al. (1996). Means > than 3.5 indicates greater importance. *Indicative of significant difference between nonexporters and exporters; however, due to small population assumptions underlying inferential statistics, that is, random samples, may not be satisfied. t values in parentheses: results significant at **p < .001, *p < .005 (see Oakes, 1986).

Note. Responses to the question “Our firm's export activity is inhibited by the high cost of …” (1 = totally disagree; 7 = totally agree). Scale adopted from Katsikeas and Morgan (1994). Means > than 3.5 indicates greater importance. *Indicative of significant difference between nonexporters and exporters; however, due to small population assumptions underlying inferential statistics, that is, random samples, may not be satisfied. t values in parentheses: results significant at *p < .005 (see Oakes, 1986).

Note. Scale adopted from Li and Ogunmokun (2001).

Additional information

Notes on contributors

Constanza Bianchi

Constanza Bianchi is professor of International Marketing at the School of Business, Universidad Adolfo Ibáñez in Chile, and research and teaching fellow at the School of Advertising, Marketing, and Public Relations at Queensland University of Technology, Brisbane, Australia.

Rumintha Wickramasekera

Rumintha Wickramasekera is senior lecturer at the School of Advertising, Marketing, and Public Relations at Queensland University of Technology, Brisbane, Australia.