The Determinants of Internationalization: Evidence from the Wine Industry

Relatively few empirical analyses have attempted to understand the export behavior of small and medium-sized enterprises, and even fewer have examined the wine industry. The purpose of this research is to apply the resource-based view to investigate the determinants of international expansion in the wine industry. Using a sample of 177 firms in the qualified appellation of origin (DOC) Rioja wine sector, we have found that process innovations are not a determinant of internationalization. However, the results show a positive and significant link between a firm's marketing activities and its level of internationalization. Our findings provide policy-makers with some factors to encourage exports in the wine industry.