Dynamic capabilities in the context of Brexit and international wine business: An exploratory two-country study
Thunderbird International Business Review
School of Business and Law
This exploratory study proposes a conceptual framework based on the dynamic capabilities approach (DCA) to advance the understanding of firms' responses to turbulence, illustrated by the Brexit phenomenon. The case of wine producers is examined, with a particular focus on perceived impacts of and responses to Brexit among wineries predominantly involved in exports. Data from 281 mainly micro and small exporting Italian and Spanish winery firms were gathered. Various differences emerged in how both groups of businesses perceived Brexit's impacts, and how they planned to respond. Some of these ways revealed principles associated with the DCA, such as possessing critical organizational resources, notably, tangible, intangible, and human to create capabilities. Furthermore, while various comments denoted indecisiveness and uncertainty, others underscored the vital need to exploit opportunities through engaging with new international consumer markets. Overall, the proposed framework facilitates an in-depth understanding of winery entrepreneurs' strategic behavior in response to turbulent situations. © 2018 Wiley Periodicals, Inc.